Fees.

CFR · 2024-01-01 · US · Title 7

(a) (1) For loans receiving a 90 percent guarantee, the guarantee fee is three percent. (2) For loans receiving less than a 90 percent guarantee, the guarantee fee is: (i) Two percent for guarantees on loans greater than 75 percent of total Eligible Project Costs. (ii) One and one-half percent for guarantees on loans of greater than 65 percent but less than or equal to 75 percent of total Eligible Project Costs. (iii) One percent for guarantees on loans of 65 percent or less of total Eligible Project Costs. (b) (1) The amount of the annual renewal fee is calculated by the outstanding principal loan balance as of December 31 of each year multiplied by the Annual Renewal Fee rate, multiplied by the percent of guarantee. The rate is the rate in effect at the time the loan is obligated, and will remain in effect for the life of the loan. (2) The Annual Renewal Fee is paid once a year and is required to maintain the enforceability of the guarantee as to the lender. Annual Renewal Rees are due on January 31. Payments not received by April 1 are considered delinquent and, at the Agency's discretion, may result in cancellation of the guarantee to the lender. Holders' rights will continue in effect as specified in the Loan Note Guarantee and Assignment Guarantee Agreement. Any delinquent Annual Renewal Fees will bear interest at the note rate and will be deducted from any loss payment due the lender. For loans where the Loan Note Guarantee is issued between October 1 and December 31,

official document · source cfr-2024 · id 7:§ 4279.231