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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 XLII - Rural Business-Cooperative Service and Rural Utilities Service, Department of Agriculture |
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Part 4279 - Guaranteed Loanmaking |
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Subpart C - Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Loans |
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Applications |
§ 4279.279 - Transfer of Lenders.
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§ 4279.279 Transfer of Lenders.
(a) The Agency may approve the substitution of a new eligible Lender in place of a former Lender who has been issued an outstanding Conditional Commitment when the Loan Note Guarantee has not yet been issued provided that there are no changes in the:
(1) Borrower's ownership or control, loan purposes, or scope of Project;
(2) Loan terms and conditions in the Conditional Commitment; and
(3) Loan Agreement.
(b) The Agency must determine that the new Lender is eligible in accordance with § 4279.208 prior to approving the substitution. The original Lender must provide the Agency with a letter stating the reasons it no longer desires to be a Lender for the Project. The substituted Lender must execute a new part B of Form 4279-1 and Lender's Agreement (unless a valid Lender's Agreement with the Agency already exists), and must complete a new Lender's analysis in accordance with § 4279.215. The new Lender may also be required to provide other updated application items outlined in § 4279.261(k).