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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 B - Farmer Program Loans |
§ 1980.174 - Percentage of guarantee.
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(a) The maximum percentage of guarantee is 90 percent, except in the following situations when lenders will be provided a 95 percent guarantee:
(1) When the sole loan purpose of a guaranteed OL or FO loan is to refinance a direct FSA farm credit program loan.
(2) When the purpose of an FO loan guarantee is to participate in the down payment loan program.
(3) When a guaranteed OL is made to a farmer or rancher who is participating in the down payment loan program. The guaranteed OL must be made during the period that a borrower has a direct FO loan outstanding for acquiring a farm or ranch.
(4) When a guaranteed OL or FO loan is requested for multiple purposes and only a portion of the loan is used to refinance a direct FSA farm credit program loan, in which case a weighted percentage of guarantee is provided.
(b) Guarantees issued to CLP lenders are never at a guarantee rate of less than 80 percent.