§ 1948.116 - Fees and charges.

(a) Late payment charges. Unpaid principal or interest on the loan to the intermediary will be handled as specified in the Loan Agreements attached as exhibit II to these regulations. Late payment charges on a loan to an ultimate recipient may be made when a loan payment has not been received within the customary timeframe allowed as agreed upon by the ultimate recipient and intermediary. The term “payment received” means that the payment in cash or check, money order, or similar medium has been received by the intermediary at its designated place of payment.

(b) Documentation of fees. All fees and charges must be specifically documented and justified on Form FmHA 1948-1, “Application for Loan (Intermediary Relending Program),” or on an addendum to the application at the time the loan request is submitted to FmHA or its successor agency under Public Law 103-354 for processing. Allowable fees will be those reasonably and customarily charged intermediaries in similar circumstances in the ordinary course of business and are subject to FmHA or its successor agency under Public Law 103-354 review and concurrence.

(c) Eligible packagers and payment of fees. Packaging fees include services rendered by others in connection with preparation of the application and seeing the transaction through to final decision. These services may or may not be performed by an investment banker. If an investment banker provides needed assistance in addition to the packaging of the loan, additional charges may be added to the packaging fee. The maximum allowable packaging fees are 2 percent of the total principal amount. Packaging fees, investment banker fees, and any other fees and charges not specifically provided for in this section are permitted subject to FmHA or its successor agency under Public Law 103-354 review and written approval.