Code of Federal Regulations Title 7. Agriculture § 7.5001.2 Structure

(a) Subpart A. Subpart A contains provisions that are applicable to each guaranteed loan made under this part, except as may be otherwise indicated. Topics covered include definitions;  exception authority;  appeal and review rights;  general lender responsibilities;  special initiatives;  approvals, regulations, and forms;  and standards for financial information.

(b) Subpart B. This subpart contains provisions for determining project, borrower, and lender eligibility that are applicable to each guaranteed loan made under this part. It also contains a list of eligible and ineligible uses of loan funds, ineligible Projects and conditions that would make an otherwise eligible borrower ineligible. The lender's agreement is addressed as well as maintenance of approved lender status.

(c) Subpart C. This subpart contains provisions for general origination requirements, credit evaluation, appraisals, various types of guarantees, monitoring requirements, compliance with other laws, environmental responsibilities, and conflicts of interest that are applicable to each guaranteed loan made under this part.

(d) Subpart D. This subpart contains provisions relating to applications for a Loan Guarantee under this part, including preliminary eligibility reviews, the application process, Application evaluation, and the application award processes that are applicable to each Guaranteed Loan made under this part.

(e) Subpart E. This subpart contains loan and guarantee provisions that are applicable to each guaranteed loan made under this part. Loan provisions cover interest rates, term length, loan schedule, repayment, lender fees, loan amounts, percentage of guarantee, and assignment of a guaranteed loan. Guarantee provisions cover the conditional commitment, conditions precedent to issuing the loan note guarantee, the issuance of the loan note guarantee, guarantee and other fees, replacement of documents, borrower reorganizations, and other legal requirements.

(f) Subpart F. This subpart applies to provisions for servicing the loans guaranteed under this part, including oversight, monitoring and reporting requirements and project completion requirements that are applicable to each guaranteed loan made under this part, except as may be otherwise indicated. Servicing topics covered include audits and financial reports;  collateral;  loan transfers and assumptions;  lender transfers;  mergers;  servicing fees;  subordinations of lien position;  repurchases;  additional expenditures and loans;  interest rate changes;  lender failures;  borrower defaults;  protective advances;  liquidation;  bankruptcy;  litigation;  loss calculations and payments;  future recovery;  property acquired by the lender;  and termination of the loan note guarantee.

(g) Appendices. These appendices provide specific information on various reports associated with applying for a loan guarantee under this part.