Restructuring guaranteed loans.

CFR · 2024-01-01 · US · Title 7

(a) (i) Obtain prior written approval of the Agency for all restructuring actions; and, (ii) Provide the items in paragraph (b) and (e) of this section to the Agency for approval. (2) If the standard eligible lender's proposal for servicing is not agreed to by the Agency, the Agency approval official will notify the lender in writing within 14 days of the lender's request. (3) To restructure guaranteed loans CLP lenders must: (i) Obtain prior written approval of the Agency only for debt write down under this section. (ii) Submit all calculations required in paragraph (e) of this section for debt writedown. (iii) For restructuring other than write down, provide FSA with a certification that each requirement of this section has been met, a narrative outlining the circumstances surrounding the need for restructuring, and copies of any applicable calculations. (4) PLP lenders will restructure loans in accordance with their lender's agreement. (5) All lenders will submit copies of any restructured notes or lines of credit to the Agency. (b) (1) The borrower meets the eligibility criteria of § 762.120, except the provisions regarding prior debt forgiveness and delinquency on a federal debt do not apply. (2) The borrower's ability to make the amended payment is documented by the following: (i) A feasible plan. (ii) Current financial statements from all liable parties. (iii) Verification of nonfarm income. (iv) Verification of all debts of exceeding an amount determined by the Agency

official document · source cfr-2024 · id 7:§ 762.145