Rates and terms.

CFR · 2024-01-01 · US · Title 7

(a) (2) The limited resource Operating Loan interest rate is available to applicants who are unable to develop a feasible plan at regular interest rates. (3) The interest rate charged will be the lower rate in effect at the time of loan approval or loan closing. (4) The Agency's Direct ML OL interest rate on an ML to a beginning farmer or veteran farmer is available in each Agency office. ML borrowers in these groups have the option of choosing the ML OL interest rate or the Direct OL interest rate in effect at the time of approval, or if lower, the rate in effect at the time of closing. (b) (i) The term of the loan may not exceed 24 months from the date of the note. (ii) The term of the loan may exceed 24 months in unusual situations such as establishing a new enterprise, developing a farm, purchasing feed while crops are being established, marketing plans, or recovery from a disaster or economic reverse. In no event will the term of the loan exceed 7 years from the date of the note. Crops and livestock produced for sale will not be considered adequate security for such loans. (2) The Agency schedules the repayment of all other OL loans based on the applicant's ability to repay and the useful life of the security. In no event will the term of the loan exceed 7 years from the date of the note. Repayment schedules may include equal, unequal, or balloon installments if needed to establish a new enterprise, develop a farm, or recover from a disaster or economic reversal. Loans w

official document · source cfr-2024 · id 7:§ 764.254