Transfer of security and loan assumption on same rates and terms.

CFR · 2024-01-01 · US · Title 7

An eligible applicant may assume an FLP loan on the same rates and terms as the original note if: (a) The original borrower has died and the spouse, other relative, or joint tenant who is not obligated on the note inherits the security property; (b) A family member of the borrower or an entity comprised solely of family members of the borrower assumes the debt along with the original borrower; (c) An individual with an ownership interest in the borrower entity buys the entire ownership interest of the other members and continues to operate the farm in accordance with loan (d) A new entity buys the borrower entity and continues to operate the farm in accordance with loan requirements; or (e) The original loan is an EM loan for physical or production losses and persons who were directly involved in the farm's operation at the time of the loss will assume the loan. If the original loan was made to: (1) An individual borrower, the transferee must be a family member of the original borrower or an entity in which the entity members are comprised solely of family members of the original borrower. (2) A trust, partnership or joint operation, the transferee must have been a member, partner or joint operator when the Agency made the original loan or remain an entity comprised solely of people who were original entity members, partners or joint operators when the entity received the original loan. (3) A corporation, limited liability company, cooperative, or other legal business organiz

official document · source cfr-2024 · id 7:§ 765.402