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Code of Federal Regulations Title 7. Agriculture § 7.1752.12 Parity lien

Current as of October 02, 2022 | Updated by FindLaw Staff

A Borrower's request for parity 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 amount of new debt is at least equal to the amount of the collateral being added and will cure any existing or projected delinquency. The following factors will be considered in assessing whether the request is in the Government's best interest:

(a) The value of the added assets compared with the amount of new debt to be secured;

(b) The value of the assets already pledged under the Loan Documents, and any effects of the proposed transaction on the value of those assets;

(c) The ratio of the total outstanding debt secured under the Loan Documents to the value of all assets pledged as security under the Loan Documents;

(d) The Borrower's ability to repay its debt owed to the Government;

(e) The overall financial viability of the Borrower;  and

(f) That the Borrower is in good standing with the Agency or will become so with the parity lien;  and

(g) Such other conditions as may be imposed by the Agency on a case-by-case basis, as determined by RUS.

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Cite this article: FindLaw.com - Code of Federal Regulations Title 7. Agriculture § 7.1752.12 Parity lien - last updated October 02, 2022 | https://codes.findlaw.com/cfr/title-7-agriculture/cfr-sect-7-1752-12/

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