Loan approval and closing.

CFR · 2024-01-01 · US · Title 7

(a) (b) (c) (i) A pre-authorized debit form allowing the Agency to withdraw payments from the RMRF account, and in the event of a repayment workout, from the LLRF account; (ii) An Agency-approved automatic deposit authorization form, from the depository institution providing the Agency with the RMRF account number, into which funds may be deposited at time of disbursement to the microlender; (iii) A statement from the depository institution as to the amount of cash in the LLRF account; (iv) An Agency-approved promissory note and a loan agreement for each loan to the MDO must be executed at loan closing. The loan agreement will be prepared by the Agency using Form RD 4274-4, “Intermediary Relending Program/Rural Microentrepreneur Assistance Program Loan Agreement,” and reviewed by the MDO prior to loan closing; and (v) An appropriate security agreement on the LLRF and RMRF accounts must be executed at loan closing. (2) At loan closing, the microlender must certify that: (i) All requirements of the letter of conditions have been met; and (ii) There has been no material adverse change in the microlender, its key personnel, or its financial condition since the issuance of the letter of conditions. If one or more adverse changes have occurred, the microlender must explain the changes and the Agency must determine that the microlender remains eligible and qualified to participate as an MDO. (3) The microlender will provide sufficient evidence that no lawsuits or other legal issues

official document · source cfr-2024 · id 7:§ 4280.312