§ 1948.115 - Post award requirements.

(a) Intermediaries receiving loans under this program shall be governed by these regulations, the Loan Agreement, the approved work plan, security interests, and any other conditions which the FmHA or its successor agency under Public Law 103-354 may impose in awarding a loan. Prior to making a loan commitment to an ultimate recipient, the intermediary must receive FmHA or its successor agency under Public Law 103-354's concurrence in the proposed use of loan funds outlined in § 1948.128 of this subpart.

(b) Unless otherwise specifically agreed to in writing by the FmHA or its successor agency under Public Law 103-354, any loan funds held by an intermediary and any funds obtained from loaning FmHA or its successor agency under Public Law 103-354-derived funds and recollecting them, that are not immediately needed by the intermediary for an ultimate recipient, should be deposited in an interest bearing account in a bank or other financial institution which will be covered by a form of federal deposit insurance. Any interest or income earned as a results of such deposits shall be used by the intermediary only for purposes authorized by FmHA or its successor agency under Public Law 103-354.