Bankruptcy.

CFR · 2024-01-01 · US · Title 7

(a) (1) Filing a proof of claim where required and all the necessary papers and pleadings; (2) Attending, and where necessary, participating in meetings of the creditors and court proceedings; (3) Protecting the collateral securing the guaranteed loan and resisting any adverse changes that may be made to the collateral; (4) Seeking a dismissal of the bankruptcy proceeding when the operation as proposed by the borrower to the bankruptcy court is not feasible; (5) When permitted by the bankruptcy code, requesting a modification of any plan of reorganization if it appears additional recoveries are likely. (6) Monitor confirmed plans under chapters 11, 12 and 13 of the bankruptcy code to determine borrower compliance. If the borrower fails to comply, the lender will seek a dismissal of the reorganization plan; and (7) Keeping the Agency regularly informed in writing on all aspects of the proceedings. (i) The lender will submit a default status report when the borrower defaults and every 60 days until the default is resolved or a final loss claim is paid. (ii) The default status report will be used to inform the Agency of the bankruptcy filing, the reorganization plan confirmation date and effective date, when the reorganization plan is complete, and when the borrower is not in compliance with the reorganization plan. (b) (i) Expenses, such as legal fees and the cost of appraisals incurred by the lender as a direct result of the borrower's chapter 11, 12, or 13 reorganization, are

official document · source cfr-2024 · id 7:§ 762.148