Liquidation.

CFR · 2024-01-01 · US · Title 7

In the event of one or more incidents of default or third party actions that the borrower cannot or will not cure within a reasonable period of time, the lender, with Agency consent, must liquidate the loan. In accordance with § 4287.145(d), for loans closed on or after August 2, 2016, in the event of a loss, the guarantee will not cover note interest to the lender accruing after 90 days from the most recent delinquency effective date. (a) (1) A loan is 90 days behind on any scheduled payment and the lender and the borrower have not been able to cure the delinquency through actions such as those contained in § 4287.145. (2) It is determined that delaying liquidation will jeopardize full recovery on the loan. (3) The borrower or lender is uncooperative in resolving the problem or the Agency or lender has reason to believe the borrower is not acting in good faith, and it would improve the position of the guarantee to liquidate immediately. (b) (c) (1) Such proof as the Agency requires to establish the lender's ownership of the guaranteed loan promissory note and related security instruments and a copy of the payment ledger, if available, that reflects the current loan balance, accrued interest to date, and the method of computing the interest; (2) A full and complete list of all collateral, including any personal and corporate guarantees; (3) The recommended liquidation methods for making the maximum collection possible on the indebtedness and the justification for such methods

official document · source cfr-2024 · id 7:§ 4287.157