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Code of Federal Regulations Title 7. Agriculture § 7.1752.11 Consent to additional, unsecured debt

Current as of January 02, 2025 | Updated by Findlaw Staff

(a) An additional, unsecured loan from another lender to the Borrower may be approved subject to the conditions set forth in this section. In order to request assistance under this section, the Borrower must make a showing that the additional debt will cure any existing or projected delinquency. Additionally, the following requirements must be met, as determined by RUS:

(1) The additional debt will not disadvantage RUS's standing or lien on any of the collateral already pledged to RUS;

(2) The additional debt will not adversely impact the continued financial viability of the Borrower or the Borrower's ability to carry out the purposes of the RUS loan;

(3) The debt is needed to resolve short-term, negative cashflow problems;  and

(4) The Borrower is in good standing with the Agency or will become so with the additional debt.

(b) In the case where all assets of the Borrower are not secured by the Government's debt, the Borrower may request additional debt that is secured by collateral that is not subject to the Government's security interest.

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Cite this article: FindLaw.com - Code of Federal Regulations Title 7. Agriculture § 7.1752.11 Consent to additional, unsecured debt - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-7-agriculture/cfr-sect-7-1752-11/

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