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Code of Federal Regulations (Last Updated: November 8, 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 XXXV - Rural Housing Service, Department of Agriculture |
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Part 3575 - General |
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Subpart A - Community Programs Guaranteed Loans |
§ 3575.30 - Loan guarantee limitations.
Latest version.
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§ 3575.30 Loan guarantee limitations.
The percentage of guarantee, up to the maximum allowed by this section, is a matter for negotiation between the lender and the Agency.
(a) The maximum guarantee is 90 percent of eligible loss.
(b) The lender will retain a minimum of 5 percent of the total loan amount. The retained amount must be from the unguaranteed portion of the loan and cannot be participated to another lender.