Loan closing.

CFR · 2024-01-01 · US · Title 7

(a) (1) For individual applicants, only the applicant is required to sign the promissory note. (2) For entity applicants, the promissory note will be executed to evidence the liability of the entity, any embedded entities, and the individual liability of all entity members. (3) Despite minority status, a youth executing a promissory note for a Youth loan will incur full personal liability for the debt. (4) A cosigner will be required to sign the promissory note if they assist the applicant in meeting the repayment requirements for the loan requested. (5) All signatures needed for the Agency to acquire the required security interests will be obtained according to State law. (b) (c) (1) The Agency will close a chattel loan only when it determines the Agency requirements for the loan have been satisfied; (2) A financing statement is required for every loan except when a filed financing statement covering the applicant's property is still effective, covers all types of chattel property that will serve as security for the loan, describes the land on which crops and fixtures are or will be located, and complies with the law of the jurisdiction where filed; (3) A new security agreement is required for new loans, as necessary to secure the loan under State law, prior to the disbursement of loan funds. (d) (i) For loans of $25,000 or less; (ii) As provided in § 764.235 for CLs and § 764.355 for EMs; (iii) When the real estate is considered additional security by the Agency; or (iv) Wh

official document · source cfr-2024 · id 7:§ 764.402