§ 1943.79 - Relationship with other FmHA or its successor agency under Public Law 103-354 loans, direct and guaranteed.

(a) Direct SW loans may be made simultaneously with other FmHA or its successor agency under Public Law 103-354 loans or to borrowers presently in debt on FmHA or its successor agency under Public Law 103-354 loans, only if the loan limits involved will not be exceeded and all requirements of the loans involved will be met.

(b) New applicants and borrowers indebted to FmHA or its successor agency under Public Law 103-354 and/or an FmHA or its successor agency under Public Law 103-354 guaranteed lender(s) for an EE loan may be considered for an SW loan(s) provided their total outstanding principal indebtedness to FmHA or its successor agency under Public Law 103-354 and/or the FmHA or its successor agency under Public Law 103-354 guaranteed lender(s) for the EE and any FO, RL, OL and SW loans will not exceed $650,000.

(c) A direct SW loan may be made to a borrower with an outstanding guaranteed FO, SW of RL loan when:

(1) The total direct and guaranteed FO, SW and RL principal balance, including the new loan, owed by the loan applicant does not exceed $300,000 at either loan approval or loan closing.

(2) Different lien positions on real estate are considered separate and identifiable collateral.

(3) All other requirements of the loan are met.

(d) A borrower may use the same collateral to secure two or more loans made, direct or guaranteed under this subpart except that the outstanding amount of such loans may not exceed the total value of the collateral.