Lenders' functions and responsibilities.

CFR · 2024-01-01 · US · Title 7

(a) (i) Processing applications for guaranteed loans; (ii) Developing and maintaining adequately documented loan files, which must be maintained for at least 3 years after any final loss has been paid; (iii) Recommending only loan proposals that are eligible and financially feasible; (iv) Properly closing the loan and obtaining valid evidence of debt and collateral in accordance with sound lending practices prior to disbursing loan proceeds; (v) Keeping an inventory accounting of all collateral items and reconciling the inventory of all collateral sold during loan servicing, including liquidation; (vi) Monitoring construction and operation; (vii) Distributing loan funds; (viii) Servicing guaranteed loans in a prudent manner, including liquidation if necessary; (ix) Reporting all conflicts of interest, or appearances thereof, to the Agency; (x) Following Agency regulations and agreements; and (xi) Obtaining Agency approvals or concurrence as required. (2) This subpart, subpart B of this part, and subpart B of part 4287 of this chapter contain the regulations for this program, including the lenders' responsibilities. If a lender fails to comply with these requirements, the Agency may reduce any loss payment in accordance with the applicable regulations. (b) (c) (1) Lenders must assist the borrower in providing details of the project's impact on the environment and historic properties in accordance with 7 CFR part 1970, “Environmental Policies and Procedures,” (or successor regu

official document · source cfr-2024 · id 7:§ 4279.30