§ 5001.524 - Termination of loan note guarantee.

§ 5001.524 Termination of loan note guarantee.

Each loan note guarantee issued under this part or under one of the guaranteed loan programs identified in § 5001.1 of this part will terminate automatically when one of the events described in paragraphs (a) through (c) of this section occur. The lender will maintain its guaranteed loan files for at least three years after termination of the loan note guarantee.

(a) The guaranteed loan is paid in full;

(b) Full payment by the Agency of any loss claim or compromised settlement except for future recovery provisions; or

(c) Written request from the lender to the Agency to terminate the guarantee, which will be effective the date the Agency receives the request provided that the lender holds all the guaranteed portion of the loan.

(d) The Agency may terminate the loan note guarantee if it is determined that the lender or borrower failed to adhere to the applicable provisions of this part or other good cause.

[85 FR 42518, July 14, 2020, as amended at 85 FR 62199, Oct. 2, 2020]