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Current as of October 02, 2022 | Updated by FindLaw Staff
(a) If a borrower is required by the terms of its mortgage or loan contract to obtain RUS approval of a merger or acquisition, the borrower shall request RUS approval and shall provide RUS with such data as RUS may request.
(b) If loan funds are requested, the borrower shall comply with subpart G of this part. If no additional loan funds are involved, the borrower shall comply with subpart H of this part.
(c) In considering whether to approve the request, RUS will take into account, among other matters:
(1) Whether the operation, management, and the economic and loan-repayment feasibility characteristics of the proposed system are satisfactory;
(2) Whether the merger or acquisition may result in any relinquishment, impairment, or waiver of a right or power of the Government;
(3) Whether the proposed merger or acquisition is in the best interests of the Government as note holder; and
(4) Whether the proposed purchase price and terms of an acquisition are reasonable, regardless of the source of funds used to pay for the purchase. RUS will consider the purchase price unreasonable if, in RUS's opinion, it will endanger financial feasibility.
Cite this article: FindLaw.com - Code of Federal Regulations Title 7. Agriculture § 7.1735.61 Approval criteria - last updated October 02, 2022 | https://codes.findlaw.com/cfr/title-7-agriculture/cfr-sect-7-1735-61/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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