Eligibility and substitution of lenders.

CFR · 2024-01-01 · US · Title 7

(a) (b) (2) The lenders must not have losses or deficiencies in processing and servicing guaranteed loans above a level which would indicate an inability to properly process and service a guaranteed agricultural loan. (3) A lender must be subject to credit examination and supervision by an acceptable State or Federal regulatory agency; (4) The lender must maintain an office near enough to the collateral's location so it can properly and efficiently discharge its loan making and loan servicing responsibilities or use Agency approved agents, correspondents, branches, or other institutions or persons to provide expertise to assist in carrying out its responsibilities. The lender must be a local lender unless it: (i) Normally makes loans in the region or geographic location in which the applicant's operation being financed is located, or (ii) Demonstrates specific expertise in making and servicing loans for the proposed operation. (5) The lender, its officers, or agents must not be debarred or suspended from participation in Government contracts or programs or be delinquent on a Government debt. (c) (1) The Agency approves of the substitution in writing by executing a modification of the guarantee to identify the new lender, the amount of debt at the time of the substitution and any new loan terms if applicable. (2) The new lender agrees in writing to: (i) Assume all servicing and other responsibilities of the original lender and to acquire the unguaranteed portion of the loan; (

official document · source cfr-2024 · id 7:§ 762.105