Collateral inspection and release.

CFR · 2024-01-01 · US · Title 7

(a) (b) (1) (2) (3) (i) Application of the net proceeds from the sale of collateral to the borrower's debts in order of their lien priority against the sold collateral; (ii) Use of the net proceeds from the sale of collateral to purchase other collateral of equal or greater value which the lender will obtain as security for the benefit of the guaranteed loan with a lien position equal or superior to the position previously held; (iii) Application of the net proceeds from the sale of collateral to the borrower's guaranteed loan or to its business operation in such a manner that a significant improvement to the borrower's debt service ability will be clearly demonstrated. The Lender's written request must detail how the borrower's debt service ability will be improved; and (4)

official document · source cfr-2024 · id 7:§ 5001.505