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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 7 - Agriculture |
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Subtitle B - Regulations of the Department of Agriculture |
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Chapter XVIII - Rural Housing Service, Rural Business-Cooperative Service, Rural Utilities Service, and Farm Service Agency, Department of Agriculture |
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SubChapter H - Program Regulations |
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Part 1980 - General |
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Subpart E - Business and Industrial Loan Program |
Appendix F - Conditional Commitment for Guarantee
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USDA-FmHA or its successor agency under Public Law 103-354 Form FmHA or its successor agency under Public Law 103-354 449-14 (Rev. 12-89) FORM APPROVED OMB NO. 0575-0024 TO: Lender Case No. Lender's Address State Borrower County Type of Loan Principal Amount of Loan $ From an examination of information supplied by the Lender on the above proposed loan, the county committee certification or recommendation, if required, and other relevant information deemed necessary, it appears that the transaction can properly be completed.
Therefore, the United States of America acting through the Farmers Home Administration or its successor agency under Public Law 103-354 (FmHA or its successor agency under Public Law 103-354) hereby agrees that, in accordance with applicable provisions of the FmHA or its successor agency under Public Law 103-354 regulations published in the Federal Register and related forms, it will execute Form(s) FmHA or its successor agency under Public Law 103-354 449-34, “Loan Note Guarantee,” subject to the conditions and requirements specified in said regulations and below.
The Loan Note Guarantee fee payable by the Lender to FmHA or its successor agency under Public Law 103-354 will be the amount as specified in the regulations on the date of this Conditional Commitment for Guarantee. The interest rate for the loan is
1 ____ % and, if applicable, the loan subsidy rateis ____ %1 . If a variable rate is used, it must be tied to a base rate which cannot change more often than____ 2 and must be published periodically in a financial publication specifically agreed to by the Lender and Borrower.A Loan Note Guarantee will not be issued until the Lender certifies as required in 7 CFR 1980.60 that there has been no adverse change(s) in the Borrower's financial condition, nor any other adverse change in the Borrower's condition during the period of time from FmHA or its successor agency under Public Law 103-354's issuance of the Conditional Commitment for Guarantee to issuance of the Loan Note Guarantee. The Lender's certification must address all adverse changes and be supported by financial statements of the Borrower and its guarantors not more than 60 days old at the time of certification. As used in this paragraph only, the term “Borrower” includes any parent, affiliate, or subsidiary of the Borrower.
This agreement becomes null and void unless the conditions are accepted by the Lender and Borrower within 60 days from date of issuance by FmHA or its successor agency under Public Law 103-354. Any negotiations concerning these conditions must be completed by that time.
Except as set out below, the purposes for which the loan funds will be used and the amounts to be used for such purposes are set out on the Request for Loan Note Guarantee, the Request for Guarantee Operating Loan Line of Credit, Emergency Livestock Loan, or Economic Emergency Loan, or the Application for Loan and Guarantee. Once this instrument is executed and returned to FmHA or its successor agency under Public Law 103-354, no major change of conditions or approved loan purpose as listed on the forms will be considered. Additional Conditions and Requirements including Source and Use of Funds:
3 This conditional commitment will expire on
____ 4 unless the time is extended in writing by FmHA or its successor agency under Public Law 103-354, or upon the Lender's earlier notification to FmHA or its successor agency under Public Law 103-354 that it does not desire to obtain an FmHA or its successor agency under Public Law 103-354 guarantee.UNITED STATES OF AMERICA BY: Date: FmHA or its successor agency under Public Law 103-354 (Title) Acceptance of Conditions To: Farmers Home Administration or its successor agency under Public Law 103-354 (FmHA or its successor agency under Public Law 103-354) 5 The conditions of this Conditional Commitment for Guarantee including attachments are acceptable and the undersigned intends to proceed with the loan transaction and request issuance of a Loan Note Guarantee within ____ days.(Name of Lender) By: (Signature of Lender) 6 (Signature for Borrower) 1 Insert fixed interest rate or, if authorized by regulations, variable interest rate followed by a “V” and the appropriate loan subsidy rate, if applicable.2 Insert the period prescribed in the applicable FmHA or its successor agency under Public Law 103-354 regulation. For B&I loans “quarterly” and for CP loans “annually” will be inserted in this space.3 Insert any additional conditions or requirements in this space or on an attachment referred to in this space; otherwise, insert “NONE”.4 FmHA or its successor agency under Public Law 103-354 will determine the expiration date of this contract. Consideration will be given to the date indicated by the lender in the acceptance of conditions. If construction is involved the expiration date will correspond with the projected completion of the project.5 Return completed and signed copy of this form to FmHA or its successor agency under Public Law 103-354 issuing office.6 Required in B&I, CP, and RH-MF cases, not in other cases.