Conditional commitment.

CFR · 2024-01-01 · US · Title 7

(a) (1) Upon acceptance of the conditional commitment, the lender agrees not to modify the scope of the project, overall facility concept, project purpose, use of guaranteed loan funds, or other terms and conditions without Agency written concurrence in accordance with paragraph (c) of this section. (2) If the lender decides at any time after receiving a conditional commitment that it no longer wants a loan guarantee, the lender must immediately advise the Agency of the cancellation in writing. Upon written notification from the lender, the Agency will de-obligate the funds associated with the conditional commitment. (b) (1) Approved use of guaranteed loan funds (source and use of funds); (2) Rates and terms of the loan; (3) Loan agreement requirements to include: (i) Repayment terms and amortization provisions of the guaranteed loan; (ii) Description of real property collateral, list of other collateral and identification of the lender's lien priority in the collateral; (iii) A list of persons and entities guaranteeing payment of the guaranteed loan and their percentage of guarantee; (iv) Requirement as to the type and frequency of the financial statements to be required for the duration of the guaranteed loan (guarantor statements must be updated at least annually); (v) Prohibition against borrower assuming liabilities or obligations of others; (vi) Limitations on borrower dividend payments and compensation of officers, owners and members of borrower; (vii) Limitations on t

official document · source cfr-2024 · id 7:§ 5001.451