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 or eliminate within a reasonable period of time, the lender, with Agency consent, must provide for liquidation in accordance with paragraphs (a) through (n) of this section. The lender is responsible for initiating actions immediately and as necessary to assure a prompt, orderly liquidation that will provide maximum recovery. The Agency reserves the right to unilaterally conclude that liquidation is necessary and require the lender to assign the collateral to the Agency and the Agency will then liquidate the loan per paragraph (o) of this section. (a) (1) The loan is 90 calendar days behind on any scheduled payment and the lender and the borrower have not been able to cure the delinquency; (2) Delaying liquidation will jeopardize full or maximum recovery on the loan; or (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 immediate liquidation would minimize loss to the Agency. (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; (2) A copy of the payment ledger, if available, or other documentation that reflects the current outstanding loan balance, accrued interest to date, and the method of computing the accrued interest; (3) A full and complete list of a

official document · source cfr-2024 · id 7:§ 5001.517