Title 7--AGRICULTURE
Chapter XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES


(a) This subpart contains regulations for loans made by the Agency to eligible intermediaries and applies to borrowers and other parties involved in making such loans....


(a) General definitions. The following definitions are applicable to the terms used in this subpart: Agency. The Federal agency within the USDA...


(a) The types of entities which may become intermediaries are: (1) Private nonprofit corporations. (2) Public agencies--Any State or...


(a) Ultimate recipients may be individuals, public or private organizations, or other legal entities, with authority to incur the debt...


(a) Intermediaries. Agency IRP loan funds must be placed in the intermediary's IRP revolving fund and used by the intermediary to provide direct loans to eligible...


Agency IRP loan funds may not be used for payment of the intermediary's administrative costs or expenses. The IRP revolving fund may not be used for: ...


(a) No loan to an intermediary shall be extended for a period exceeding 30 years. Interest and principal payments will be scheduled at least annually. The initial principal...


(a) Loans made by the Agency pursuant to this subpart shall bear interest at a fixed rate of 1 percent per annum over the term of the loan. (b) Interest rates charged...


(a) Intermediaries. Security for all loans to intermediaries must be such that the repayment of the loan is reasonably assured, when considered along with the intermediary's...


(a) Intermediary. (1) No loan to an intermediary will exceed the maximum amount the intermediary can reasonably be expected to lend to eligible ultimate recipients, in...


(a) Applicability. Intermediaries receiving loans under this program shall be governed by these regulations, the loan agreement, the approved work plan,...


(a) Intergovernmental consultation. The IRP is subject to the provisions of Executive Order 12372 which requires intergovernmental consultation with State...


the Agency and the intermediary. A loan agreement or a supplement to a previous loan agreement must be executed by the intermediary and the Agency at loan closing for...


(a) The application will consist of: (1) An application form provided by the Agency. (2) A written work plan and other evidence the Agency requires to demonstrate...


for loans. (a) Intermediaries' contact. Intermediaries desiring assistance under this subpart may file applications with the state office for the state...


If the Agency is able to make the loan, it will provide the intermediary a letter of conditions listing all requirements for the loan. Immediately after reviewing...


obligating funds. The loan will be considered approved on the date the signed copy of the obligation of funds document is mailed to the intermediary. The approving...


(a) At loan closing, the intermediary must certify to the following: (1) No major changes have been made in the work plan except those approved in the interim by...


ultimate recipients. (a) An intermediary may use revolved funds to make loans to ultimate recipients without obtaining prior Agency concurrence. When an...


Any appealable adverse decision made by the Agency which affects the intermediary may be appealed in accordance with USDA appeal regulations found at 7 CFR...


The Administrator may, in individual cases, grant an exception to any requirement or provision of this subpart which is not inconsistent with any applicable law,...


The reporting and recordkeeping requirements contained in this regulation have been approved by the Office of Management and Budget under the provisions of 44 U.S.C....


general regulations for making and servicing Business and Industry (B&I) loans guaranteed by the Agency and applies to lenders, holders, borrowers and other parties involved...


(a) Definitions. Agency. The Rural Business-Cooperative Service or successor Agency assigned by the Secretary of Agriculture to administer the B&I program. References to...


in individual cases, grant an exception to any requirement or provision of this subpart which is not inconsistent with any applicable law provided, the...


holder can appeal an Agency decision made under this subpart. In cases where the Agency has denied or reduced the amount of final loss payment to the lender, the adverse...


An eligible lender is any Federal or State chartered bank, Farm Credit Bank, other Farm Credit System institution with direct lending authority, Bank for...


(a) General. (1) Lenders have the primary responsibility for the successful delivery of the B&I loan program. All lenders obtaining or requesting a B&I loan guarantee...


(a) General. This section provides policies and procedures for the Certified Lender Program (CLP) for loans guaranteed under this part. The objectives are to expedite loan...


permit representatives of the Agency (or other agencies of the United States) to inspect and make copies of any records of the lender pertaining to the Agency guaranteed loans...


In accordance with title V of Public Law 93-495, the Equal Credit Opportunity Act, with respect to any aspect of a credit transaction, neither the lender nor the Agency will...


The Agency is responsible for ensuring that all requirements of FmHA Instruction 2006-P, ``Civil Rights Impact [[Page 568]] Analysis'' are met and will complete...


Any public body or nonprofit corporation that receives a guaranteed loan that meets the thresholds established by OMB Circulars A-128 or A- 133 or successor regulations...


loan guarantee under this part will be evidenced by a Loan Note Guarantee issued by the Agency. Each lender will execute a Lender's Agreement. If a valid Lender's Agreement...


The lender may sell all or part of the guaranteed portion of the loan on the secondary market or retain the entire loan. The lender shall not sell or participate any amount of...


participation in the loan under its normal operating procedures; however, the lender must retain title to the notes if any of them are unguaranteed and retain the lender's...


required to hold in its own portfolio a minimum of 5 percent of the total loan amount. The amount required to be maintained must be of the unguaranteed portion of...


by lender. A lender has the option to repurchase the unpaid guaranteed portion of the loan from a holder within 30 days of written demand by the holder when the borrower is...


The Agency may issue a replacement Loan Note Guarantee or Assignment Guarantee Agreement which was lost, stolen, destroyed, mutilated, or defaced to the lender or holder upon receipt...


requirements contained in this regulation have been approved by OMB and have been assigned OMB control number 0575-0171. Public reporting burden for this collection...


(a) Content. This subpart contains loan processing regulations for the Business and Industry (B&I) Guaranteed Loan Program. It is supplemented by subpart A of this part, which...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR4279.102] [Page 572] TITLE 7--AGRICULTURE CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE PART 4279_GUARANTEED LOANMAKING--Table of Contents Subpart B_Business and Industry Loans Sec. 4279.102 Definitions. The definitions and abbreviations in Sec. 4279.2 of subpart A of this part are applicable to this subpart. ...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR4279.103] [Page 572] TITLE 7--AGRICULTURE CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE PART 4279_GUARANTEED LOANMAKING--Table of Contents Subpart B_Business and Industry Loans Sec. Sec. 4279.103 Exception authority. Section 4279.15 of subpart A of this part applies to this subpart. ...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR4279.104] [Page 572] TITLE 7--AGRICULTURE CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE PART 4279_GUARANTEED LOANMAKING--Table of Contents Subpart B_Business and Industry Loans Sec. 4279.104 Appeals. Section 4279.16 of subpart A of this part applies to this subpart. ...


The guarantee fee will be paid to the Agency by the lender and is nonrefundable. The fee may be passed on to the borrower. Except as provided in this section, the guarantee fee will be...


(a) Type of entity. A borrower may be a cooperative, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a...


Loan purposes must be consistent with the general purpose contained in Sec. 4279.101 of this subpart. They include but are not limited to the following: (a) Business...


(a) Distribution or payment to an individual owner, partner, stockholder, or beneficiary of the borrower or a close relative of such an individual when such individual will...


No B&I loans guaranteed by the Agency will be conditioned on any requirement that the recipients of such assistance accept or receive electric service from any...


(a) Loan amount. The total amount of Agency loans to one borrower, including the guaranteed and unguaranteed portions, the outstanding principal and interest balance of...


(a) Routine lender fees. The lender may establish charges and fees for the loan provided they are similar to those normally charged other applicants for the same type of loan in...


The interest rate for the guaranteed loan will be negotiated between the lender and the applicant and may be either fixed or variable as long as it is a legal rate. Interest rates...


repayment for loans on real estate will not exceed 30 years; machinery and equipment repayment will not exceed the useful life of the machinery and equipment purchased with...


The lender is primarily responsible for determining credit quality and must address all of the elements of credit quality in a written credit analysis including adequacy of equity,...


(a) The lender will determine the type and frequency of submission of financial statements by the borrower. At a minimum, annual financial statements prepared by an accountant...


insurance with a standard mortgage clause naming the lender as beneficiary will be required on every loan in an amount that is at least the lesser of the...


be responsible for ensuring that appraisal values adequately reflect the actual value of the collateral. All real property appraisals associated with Agency guaranteed...


(a) Personal and corporate guarantees, when obtained, are part of the collateral for the loan. However, the value of such guarantee is not considered in...


A feasibility study by a qualified independent consultant may be required by the Agency for start-up businesses or existing businesses when the project will significantly affect...


Applications and preapplications received by the Agency will be considered in the order received; however, for the purpose of assigning priorities as described in paragraph (b) of...


(a) Design policy. The lender must ensure that all project facilities must be designed utilizing accepted architectural and engineering practices and must conform...


Borrowers and lenders are encouraged to file preapplications and obtain Agency comments before completing an application. However, if they prefer, they may...


(a) General review. The Agency will evaluate the application and make a determination whether the borrower is eligible, the proposed loan is for an eligible purpose, there...


(a) Upon approval of a loan guarantee, the Agency will issue a Conditional Commitment to the lender containing conditions under which a Loan Note Guarantee will...


(a) The loan approval official may approve the substitution of a new eligible lender in place of a former lender who holds an outstanding Conditional Commitment when the Loan...


program set aside. A 3-year set aside of B&I Guaranteed Loan Program funds has been established in the National Office to fund loans to lamb processors for...


Any changes in borrower ownership or organization prior to the issuance of the Loan Note Guarantee must meet the eligibility requirements of the program and be approved by the...


Loan Note Guarantee. The Loan Note Guarantee will not be issued until the lender, including a CLP lender, certifies to the following: (a) No major changes...


(a) When loan closing plans are established, the lender will notify the Agency. Coincident with, or immediately after loan closing, the lender will provide the following to...


If the Agency determines that it cannot execute the Loan Note Guarantee, the Agency will promptly inform the lender of the reasons and give the lender a...


The information collection requirements contained in this regulation have been approved by OMB and have been assigned OMB control number 0575-0170. Public reporting burden for...


the Rural Business-Cooperative Service's (RBS) policies and authorizations and contains procedures to provide grants for [[Page...


used to facilitate the creation or retention of jobs in rural areas through the development of new rural cooperatives, value-added processing, and...


Service (RBS) or a successor agency. Approval official--Any authorized agency official. Center--The entity established or operated by the grantee...


be made to nonprofit corporations and institutions of higher education. Grants may not be made to public bodies. (b) An outstanding judgment obtained against an applicant...


be used to pay up to 75 percent of the costs for carrying out relevant projects. Applicant's contribution may be in cash or in-kind contribution in accordance with parts 3015 and...


Grant funds may not be used to: (a) Pay more than 75 percent of relevant project or administrative costs; [[Page 588]] (b) Duplicate current services or...


rights compliance requirements. All grants made under this subpart are subject to the requirements of title VI of the Civil Rights Act of 1964, which prohibits discrimination on...


Preapplications. (1) Applicants will file an original and one copy of an [[Page 590]] ``Application for Federal Assistance (For Non-construction),'' with...


Grants will be awarded under this subpart on a competitive basis. The priorities described in this paragraph will be used by RBS to rate preapplications. RBS review of...


third-party financial assistance. The grantee will execute all documents required by RBS to make a grant under this subpart. By accepting the grant, the...


disbursed as follows: (a) A ``Request for Advance or Reimbursement,'' will be completed by the applicant and submitted to Rural Development not more frequently than...


and a project performance activity report will be required of all grantees on a quarterly calendar basis. A final project performance report will be required with the...


provide an audit report in accordance with Sec. 1942.17 of this title. Audits must be prepared in accordance with general accounting principles and standards using the...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR4284.572] [Page 592] TITLE 7--AGRICULTURE CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE PART 4284_GRANTS--Table of Contents Subpart F_Rural Cooperative Development Grants Sec. 4284.572 Grant servicing. Grants will be serviced in accordance with part 1951, subpart E of this title. ...


shall obtain prior approval for any change to the scope or objectives of the approved project. Failure to obtain prior approval of [[Page 593]] changes to...


will be processed in accordance with the requirements contained in this subpart. Cooperative development projects receiving assistance under this program will be evaluated one...


Grants may be canceled by RBS by written notice. Grants may be suspended or terminated for cause or convenience in accordance with parts 3015 and 3019 of this title,...


in individual cases, make an exception to any requirement or provision of this subpart, if the Administrator determines that application of the requirement or...


requirements contained in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0570-0006. You are...


23, 1999, unless otherwise noted. This subpart outlines Agency policies and authorizations and sets forth procedures for making grants to provide technical assistance...


be used to assist in the economic development of rural areas. (b) Funds allocated for use in accordance with this subpart are also to be considered for use by Indian...


agency within the United States Department of Agriculture (USDA) with responsibility assigned by the Secretary of Agriculture to administer the RBOG Program. At the time...


may be made to public bodies, nonprofit corporations, Indian tribes on Federal or State reservations and other Federally recognized tribal groups, and cooperatives with...


funds may be used to assist in the economic development of rural areas by providing technical assistance for business development and economic development planning. Grant funds may...


may not be used to: (a) Duplicate current services or replace or substitute support previously provided. If the current service is inadequate, however, grant funds may...


compliance requirements. All grants made under this subpart are subject to title VI of the Civil Rights Act of 1964 and part 1901, subpart E of this title. ...


(1) Applicants will file an original and one copy of ``Application For Federal Assistance (For Nonconstruction),'' with the Agency State Office (available in any...


Agency officials will select projects to receive assistance under this program according to the following criteria: (a) A score of 0 to 10 points will be awarded based on the...


made by the Agency may be appealed in accordance with USDA appeal regulations found at 7 CFR part 11. If the Agency makes a determination that a decision is not appealable,...


(a) The following statement will be entered in the comment section of the Request For Obligation of Funds, which must be signed by the grantee: The grantee...


determine, based on 7 CFR parts 3015, 3016, and 3019, as applicable, whether disbursement of a grant will be by advance or reimbursement. A Request for Advance or...


Report (available in any Agency office) and a project performance activity report will be required of all grantees on a quarterly basis. The grantee will cause said program to...


provide an annual audit in accordance with 7 CFR part 3052. The audit requirements apply to the years in which grant funds are received and years in which work is accomplished...


serviced in accordance with part 1951, subparts E and O, of this title. Grantees will permit periodic inspection of the program operations by a representative of the Agency....


obtain prior approval for any change to the scope or objectives of the approved project. Failure to obtain prior approval of changes to the scope of work or budget may result...


in individual cases, grant an exception to any requirement or provision of this subpart provided the Administrator determines that application of the requirement or...


Congress shall be admitted to any share or part of this grant or any benefit that may arise therefrom; but this provision shall not be construed to bar as a contractor under...


recordkeeping requirements contained in this regulation have been approved by the Office of Management and Budget under the provisions of 44 U.S.C. chapter 35 and have...


This subpart sets forth the policies and procedures and delegates authority for providing Federal-State Research on Cooperatives cooperative agreement funds to finance programs...


Rural Development Administration (RDA) or its successor agency may enter into a cooperative agreement with a State agency to provide funds to the State agency to: ...


As used in this part: Agreement period. The total period of time approved by the Assistant Administrator for Cooperative Services for conducting the proposed project...


To enter into a cooperative agreement for these funds, the applicant must: (a) Be a State Agency as defined in Sec. 4285.3 of this subpart; (b) Have the financial,...


funds. Funds received for research under cooperative agreements in this program shall only be used for: (a) Payment of salaries and necessary...


funds. (a) The Agricultural Marketing Act prohibits the use of Federal funds to pay for newspaper or periodical space and radio and television time,...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR4285.47] [Page 602] TITLE 7--AGRICULTURE CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE PART 4285_COOPERATIVE AGREEMENTS--Table of Contents Subpart A_Federal-State Research on Cooperatives Program Sec. 4285.47 Limitations. The amount of funds available for the cooperative agreements under this program is limited to the amount appropriated for the fiscal year. ...


funds. (a) A program solicitation will be prepared and announced through publications such as the Federal Register, professional trade journals, agency...


applications. (a) Evaluation. (1) All proposals received from eligible applicants and postmarked in accordance with deadlines established in the annual...


(a) In evaluating the proposal, the RDA or its successor agency staff review panel and the awarding official will take into account the degree to which the proposal...


(a) General. Within the limit of funds available for such purpose, the awarding official shall make awards for cooperative agreements to those applicants...


(a) Delegation of fiscal responsibility. The cooperator may not, in whole or in part, delegate or transfer to another person, institution, or organization the...


regulations that apply. Several other Federal statutes and regulations apply to cooperative agreement proposals considered for review or to agreements awarded...


Post-award requirements. Upon awarding the cooperative agreement, the post-award requirements of subparts C and D of part 3016 of this...


The reporting and recordkeeping requirements contained in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB...


This subpart supplements part 4279, subparts A and B, by providing additional requirements and instructions for servicing and liquidating all Business and Industry (B&I)...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR4287.102] [Page 608] TITLE 7--AGRICULTURE CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE PART 4287_SERVICING--Table of Contents Subpart B_Servicing Business and Industry Guaranteed Loans Sec. 4287.102 Definitions. The definitions and abbreviations contained in Sec. 4279.2 of subpart A of part 4279 of this chapter apply to this subpart. ...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR4287.103] [Page 608] TITLE 7--AGRICULTURE CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE PART 4287_SERVICING--Table of Contents Subpart B_Servicing Business and Industry Guaranteed Loans Sec. 4287.103 Exception authority. Section 4279.15 of subpart A of part 4279 of this chapter applies to this subpart. ...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR4287.106] [Page 608] TITLE 7--AGRICULTURE CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE PART 4287_SERVICING--Table of Contents Subpart B_Servicing Business and Industry Guaranteed Loans Sec. 4287.106 Appeals. Section 4279.16 of subpart A of part 4279 of this chapter applies to this subpart. ...


The lender is responsible for servicing the entire loan and for taking all servicing actions that a prudent lender would perform in servicing its own portfolio of loans that are...


(a) Reductions. The borrower, lender, and holder (if any) may collectively initiate a permanent or temporary reduction in the interest rate of the guaranteed loan at any time...


(a) All releases of collateral with a value exceeding $100,000 must be supported by a current appraisal on the collateral released. The appraisal will be at the expense of the...


A subordination of the lender's lien position must be requested in writing by the lender and concurred in by the Agency in writing in advance of the subordination....


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR4287.124] [Page 610] TITLE 7--AGRICULTURE CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE PART 4287_SERVICING--Table of Contents Subpart B_Servicing Business and Industry Guaranteed Loans Sec. 4287.124 Alterations of loan instruments. The lender shall neither alter nor approve any alterations of any loan instrument without the prior written approval of the Agency. ...


(a) Documentation of request. All transfers and assumptions must be approved in writing by the Agency and must be to eligible applicants in accordance with subpart B of part...


After the issuance of a Loan Note Guarantee, the lender shall not sell or transfer the entire loan without the prior written approval of the Agency. The Agency will not pay any loss...


(a) The lender must notify the Agency when a borrower is 30 days past due on a payment or is otherwise in default of the Loan Agreement. Form FmHA 1980-44, ``Guaranteed Loan...


Protective advances are advances made by the lender for the purpose of preserving and protecting the collateral where the debtor has failed to, will not, or cannot meet its...


event of one or more incidents of default or third party actions that the borrower cannot or will not cure or eliminate within a reasonable period of time, liquidation may...


In all liquidation cases, final settlement will be made with the lender after the collateral is liquidated, unless otherwise designated as a future recovery or...


loan has been liquidated and a final loss has been paid by the Agency, any future funds which may be recovered by the lender will be pro rated between the Agency and the lender...


is responsible for protecting the guaranteed loan and all collateral securing the loan in bankruptcy proceedings. (a) Lender's responsibilities. It is the lender's...


A guarantee under this part will terminate automatically: (a) Upon full payment of the guaranteed loan; (b) Upon full payment of any loss obligation; or (c)...


The information collection requirements contained in this regulation have been approved by OMB and have been assigned OMB control number 0575-0168. Public reporting burden for...




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