§ 1717.156 - Transitional assistance affecting preexisting loans.

§ 1717.156 Transitional assistance affecting preexisting loans.

Cross Reference

Link to an amendment published at 89 FR 17274, Mar. 11, 2024.

The fund advance period for an insured loan, which is the period during which RUS may advance loan funds to a borrower, terminates automatically after a specific period of time. See 7 CFR 17141710.56602. If, on the effective date the original fund advance period or the fund advance period as extended pursuant to 7 CFR 17141710.56602(cb), on any preexisting RUS loan to any of the active borrowers involved in a merger has not terminated, such fund advance period shall be automatically lengthened by 2 years. However, under no circumstances shall RUS ever make or approve an advance, regardless of the last day for an advance on the loan note or any extension by the Administrator, later than September 30 of the fifth year after the fiscal year of obligation if such date would result in the RUS obligating or permitting advance of funds contrary to the Anti-Deficiency Act. On the borrower's request RUS will prepare documents necessary for the advance of loan funds. RUS will prepare documents for the borrower's execution that will reflect this extension and will provide the legal authority for RUS to advance funds to the successor.

[89 FR 17274, Mar. 11, 2024]