Transfer and assumption—AMP loans.

CFR · 2024-01-01 · US · Title 7

(a) (1) The present borrower is unable or unwilling to accomplish the objectives of the loan; (2) The transfer will not harm the Government or adversely affect the Agency's security position; (3) The transferee will continue with the original purpose of the loan; (4) The transferee will assume an amount at least equal to the present market value of the loan security; (5) The transferee documents the ability to pay the AMP loan debt as provided in the assumption agreement and has the legal capacity to enter into the contract; (6) If there is a lien or judgment against the Agency security being transferred, the transferee is subject to (7) If the transfer is to one or more members of the borrower's organization and there is no new member, there must not be a loss to the Government. (b) (1) The entire unpaid balance of the withdrawing member's share of the AMP loan must be assumed by the new member; (2) In accordance with the Association's governing articles, the required number of remaining members must agree to accept any new member; and (3) The transfer will not adversely affect collection of the AMP loan. (c) (1) The written consent of any other lienholder, if applicable. (2) A current balance sheet and cash flow statement. (d) (e) (1) The full amount of the loan is assumed; or (2) Less than the full amount of the debt is assumed, and the balance remaining will be serviced in accordance with § 772.9(c).

official document · source cfr-2024 · id 7:§ 772.10