Current as of October 03, 2022 | Updated by FindLaw Staff
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(a) Payments. Payments will be made to the Agency as specified in loan agreements and debt instruments. The funds from any extra payments will be applied entirely to loan principal.
(b) Restructuring. The Agency may restructure the intermediary lender's loan debt, if:
(1) The Government's interest will be protected;
(2) The restructuring will be performed within the Agency's budget authority; and
(3) The loan objectives cannot be met unless the HFIL loan is restructured.
(c) Default. In the event of monetary or non-monetary default, the Agency will take all appropriate actions to protect its interest, including, but not limited to, declaring the debt fully due and payable and may proceed to enforce its rights under the loan agreement or any other loan instruments relating to the loan under applicable law and regulations, and commencement of legal action to protect the Agency's interest. The Agency will work with the intermediary lender to correct any default, subject to the requirements of paragraph (b) of this section. Violation of any agreement with the Agency or failure to comply with reporting or other program requirements will be considered non-monetary default.
Cite this article: FindLaw.com - Code of Federal Regulations Title 7. Agriculture § 7.769.122 Loan servicing - last updated October 03, 2022 | https://codes.findlaw.com/cfr/title-7-agriculture/cfr-sect-7-769-122/
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