General
Eligibility Requirements
Lender Functions and Responsibilities
Conditions of Guarantee
Loan Processing
Applications

Terms Used In CFR > Title 7 > Chapter XLII > Part 4279 > Subpart C

  • Administrator: The Administrator of Rural Business-Cooperative Service within the Rural Development mission area of the U. See 7 CFR 4279.202
  • Advanced biofuel: Fuel derived from Renewable Biomass, other than corn kernel starch, to include:

    (1) Biofuel derived from cellulose, hemicellulose, or lignin. See 7 CFR 4279.202

  • Advanced market risk-weighted assets: means the advanced measure for market risk calculated under §324. See 12 CFR 324.2
  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • Affiliate: An entity that is related to another entity by owning shares or having an interest in the entity, by common ownership, or by any means of control. See 7 CFR 4279.202
  • Agency: The Rural Business-Cooperative Service or successor Agency assigned by the Secretary of Agriculture to administer the Program. See 7 CFR 4279.202
  • Allocated transfer risk reserves: means reserves that have been established in accordance with section 905(a) of the International Lending Supervision Act, against certain assets whose value U. See 12 CFR 324.2
  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Amortization: Paying off a loan by regular installments.
  • Annual renewal fee: A fee that is paid once a year by the Lender and is required to maintain the enforceability of the Loan Note Guarantee. See 7 CFR 4279.202
  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Appraisal: A determination of property value.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Assignment Guarantee Agreement: Form RD 4279-6, "Assignment Guarantee Agreement" is the signed agreement between the Agency, the Lender, and the Holder containing the terms and conditions of an assignment of a guaranteed portion of a loan, using the single Promissory Note system. See 7 CFR 4279.202
  • Assistant Attorney General: means the Assistant Attorney General, Civil Rights Division, United States Department of Justice. See 29 CFR 1615.103
  • Association of Agricultural Producers: An organization that represents Agricultural Producers and whose mission includes working on behalf of such producers and the majority of whose membership and board of directors is comprised of Agricultural Producers. See 7 CFR 4279.202
  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Auxiliary aids: means services or devices that enable persons with impaired sensory, manual, or speaking skills to have an equal opportunity to participate in, and enjoy the benefits of, programs or activities conducted by the Commission. See 29 CFR 1615.103
  • Backtesting: means the comparison of an FDIC-supervised institution's internal estimates with actual outcomes during a sample period not used in model development. See 12 CFR 324.101
  • Bank: means an FDIC-insured, state-chartered commercial or savings bank that is not a member of the Federal Reserve System and for which the FDIC is the appropriate Federal banking agency pursuant to section 3(q) of the Federal Deposit Insurance Act (12 U. See 12 CFR 324.2
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • BAP: Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program. See 7 CFR 4279.202
  • Basis derivative contract: means a non-foreign-exchange derivative contract (i. See 12 CFR 324.2
  • Benchmarking: means the comparison of an FDIC-supervised institution's internal estimates with relevant internal and external data or with estimates based on other estimation techniques. See 12 CFR 324.101
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Biobased product: A product determined by the Secretary to be a commercial or industrial product (other than food or feed) that is either:

    (1) Composed, in whole or in significant part, of biological products, including renewable domestic agricultural materials and forestry materials. See 7 CFR 4279.202

  • Biobased product manufacturing: The use of Technologically New Commercial-Scale processing and manufacturing equipment and required facilities to convert Renewable Chemicals and other biobased outputs of Biorefineries into end-user products on a Commercial Scale. See 7 CFR 4279.202
  • Biofuel: A fuel derived from Renewable Biomass. See 7 CFR 4279.202
  • Biogas: Renewable Biomass converted to gaseous fuel. See 7 CFR 4279.202
  • Biorefinery: A facility (including equipment and processes) that converts Renewable biomass or an intermediate ingredient or feedstock of Renewable biomass into any one or more, or a combination, of Biofuels, Renewable chemicals or Biobased products, and may produce electricity. See 7 CFR 4279.202
  • Bond: A form of debt security in which the authorized issuer (Borrower) owes the Bond holder (Lender) a debt and is obligated to repay the principal and Interest (coupon) at a later date(s) (maturity). See 7 CFR 4279.202
  • Bond option contract: means a bond option, bond future, or any other instrument linked to a bond that gives rise to similar counterparty credit risk. See 12 CFR 324.101
  • Borrower: The Person that borrows, or seeks to borrow, money from the Lender, including any party liable for the loan except for guarantors. See 7 CFR 4279.202
  • Budget authority: Authority provided by law to enter into obligations that will result in outlays of Federal funds. Budget authority may be classified by the period of availability (one-year, multiyear, no-year), by the timing of congressional action (current or permanent), or by the manner of determining the amount available (definite or indefinite).
  • Business environment and internal control factors: means the indicators of an FDIC-supervised institution's operational risk profile that reflect a current and forward-looking assessment of the FDIC-supervised institution's underlying business risk factors and internal control environment. See 12 CFR 324.101
  • Byproduct: An incidental or secondary product generated under normal operations of the proposed Project that can be reasonably measured and monitored other than: Advanced Biofuel, Program-eligible Biobased Products including Renewable Chemicals, and Program-eligible end-user products produced by Biobased Product Manufacturing facilities. See 7 CFR 4279.202
  • Calendar quarter: Four three-month periods in each calendar year as follows:

    (1) Quarter 1 begins on January 1 and ends on March 31. See 7 CFR 4279.202

  • Call Report: means Consolidated Reports of Condition and Income. See 12 CFR 324.2
  • Cleared transaction: means an exposure associated with an outstanding derivative contract or repo-style transaction that a System institution or clearing member has entered into with a central counterparty (that is, a transaction that a central counterparty has accepted). See 12 CFR 628.2
  • Cleared transaction: means an exposure associated with an outstanding derivative contract or repo-style transaction that an FDIC-supervised institution or clearing member has entered into with a central counterparty (that is, a transaction that a central counterparty has accepted). See 12 CFR 324.2
  • Clearing member: means a member of, or direct participant in, a CCP that is entitled to enter into transactions with the CCP. See 12 CFR 628.2
  • Clearing member: means a member of, or direct participant in, a CCP that is entitled to enter into transactions with the CCP. See 12 CFR 324.2
  • Clearing member client: means a party to a cleared transaction associated with a CCP in which a clearing member either acts as a financial intermediary with respect to the party or guarantees the performance of the party to the CCP. See 12 CFR 628.2
  • Clearing member client: means a party to a cleared transaction associated with a CCP in which a clearing member acts either as a financial intermediary with respect to the party or guarantees the performance of the party to the CCP. See 12 CFR 324.2
  • Client-facing derivative transaction: means a derivative contract that is not a cleared transaction where the FDIC-supervised institution is either acting as a financial intermediary and enters into an offsetting transaction with a qualifying central counterparty (QCCP) or where the FDIC-supervised institution provides a guarantee to the QCCP on the performance of a client on a transaction between the client and a QCCP. See 12 CFR 324.2
  • Collateral: The asset(s) pledged by the Borrower to secure the loan. See 7 CFR 4279.202
  • Collateral agreement: means a legal contract that specifies the time when, and circumstances under which, a counterparty is required to pledge collateral to a System institution for a single financial contract or for all financial contracts in a netting set and confers upon the System institution a perfected, first-priority security interest (notwithstanding the prior security interest of any custodial agent), or the legal equivalent thereof, in the collateral posted by the counterparty under the agreement. See 12 CFR 628.2
  • Collateral agreement: means a legal contract that specifies the time when, and circumstances under which, a counterparty is required to pledge collateral to an FDIC-supervised institution for a single financial contract or for all financial contracts in a netting set and confers upon the FDIC-supervised institution a perfected, first-priority security interest (notwithstanding the prior security interest of any custodial agent), or the legal equivalent thereof, in the collateral posted by the counterparty under the agreement. See 12 CFR 324.2
  • Commercial end-user: means an entity that:

    (1)(i) Is using derivative contracts to hedge or mitigate commercial risk. See 12 CFR 324.2

  • Commission: means the Equal Employment Opportunity Commission. See 29 CFR 1615.103
  • Commitment: means any legally binding arrangement that obligates a System institution to extend credit or to purchase assets. See 12 CFR 628.2
  • Commitment: means any legally binding arrangement that obligates an FDIC-supervised institution to extend credit or to purchase assets. See 12 CFR 324.2
  • Commodity derivative contract: means a commodity-linked swap, purchased commodity-linked option, forward commodity-linked contract, or any other instrument linked to commodities that gives rise to similar counterparty credit risks. See 12 CFR 324.2
  • Company: means any corporation, limited liability company, business trust, general or limited partnership, association, or similar organization. See 12 CFR 332.3
  • Company: means a corporation, partnership, limited liability company, depository institution, business trust, special purpose entity, System institution, association, or similar organization. See 12 CFR 628.2
  • Company: means a corporation, partnership, limited liability company, depository institution, business trust, special purpose entity, association, or similar organization. See 12 CFR 324.2
  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • Complete complaint: means a written statement that contains the complainant's name and address and describes the Commission's actions in sufficient detail to inform the Commission of the nature and date of the alleged violation of section 504 or section 508. See 29 CFR 1615.103
  • Conditional Commitment: Form RD 4279-3, "Conditional Commitment" is the Agency's notice to the Lender that the loan guarantee it has requested is approved subject to the completion of all conditions and requirements set forth by the Agency and outlined in the attachment to the Conditional Commitment. See 7 CFR 4279.202
  • Contract: A legal written agreement that becomes binding when signed.
  • Control: A person or company controls a company if it:

    (1) Owns, controls, or holds with power to vote 25 percent or more of a class of voting securities of the company. See 12 CFR 324.2

  • Corporate exposure: means an exposure to a company that is not:

    (1) An exposure to a sovereign, the Bank for International Settlements, the European Central Bank, the European Commission, the International Monetary Fund, a multi-lateral development bank (MDB), a depository institution, a foreign bank, a credit union, or a public sector entity (PSE). See 12 CFR 628.2

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Credit derivative: means a financial contract executed under standard industry credit derivative documentation that allows one party (the protection purchaser) to transfer the credit risk of one or more exposures (reference exposure(s)) to another party (the protection provider) for a certain period of time. See 12 CFR 628.2
  • Credit derivative: means a financial contract executed under standard industry credit derivative documentation that allows one party (the protection purchaser) to transfer the credit risk of one or more exposures (reference exposure(s)) to another party (the protection provider) for a certain period of time. See 12 CFR 324.2
  • Credit report: A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. Source: OCC
  • Credit risk mitigant: means collateral, a credit derivative, or a guarantee. See 12 CFR 628.2
  • Credit risk mitigant: means collateral, a credit derivative, or a guarantee. See 12 CFR 324.2
  • Credit Score: A number, roughly between 300 and 800, that measures an individual's credit worthiness. The most well-known type of credit score is the FICO score. This score represents the answer from a mathematical formula that assigns numerical values to various pieces of information in your credit report. Source: OCC
  • Credit union: means an insured credit union as defined under the Federal Credit Union Act (12 U. See 12 CFR 628.2
  • Credit-enhancing representations and warranties: means representations and warranties that are made or assumed in connection with a transfer of underlying exposures (including loan servicing assets) and that obligate a System institution to protect another party from losses arising from the credit risk of the underlying exposures. See 12 CFR 628.2
  • Credit-risk-weighted assets: means 1. See 12 CFR 324.2
  • Custodian: means a company that has legal custody of collateral provided to a CCP. See 12 CFR 628.2
  • Custodian: means a financial institution that has legal custody of collateral provided to a CCP. See 12 CFR 324.2
  • Customer: means a consumer who has a customer relationship with you. See 12 CFR 332.3
  • Default: The condition that exists when a Borrower is not in compliance with the Promissory Note, the Loan Agreement, security documents, or other documents evidencing the loan. See 7 CFR 4279.202
  • Default fund contribution: means the funds contributed or commitments made by a clearing member to a CCP's mutualized loss sharing arrangement. See 12 CFR 324.2
  • Delinquency: A loan for which a scheduled loan payment is more than 30 days past due and cannot be cured within 30 days. See 7 CFR 4279.202
  • Dependence: means a measure of the association among operational losses across and within units of measure. See 12 CFR 324.101
  • Dependent: A person dependent for support upon another.
  • Depository institution: means a depository institution as defined in section 3 of the Federal Deposit Insurance Act. See 12 CFR 628.2
  • Depository institution: means a depository institution as defined in section 3 of the Federal Deposit Insurance Act. See 12 CFR 324.2
  • Derivative contract: means a financial contract whose value is derived from the values of one or more underlying assets, reference rates, or indices of asset values or reference rates. See 12 CFR 628.2
  • Derivative contract: means a financial contract whose value is derived from the values of one or more underlying assets, reference rates, or indices of asset values or reference rates. See 12 CFR 324.2
  • Effective notional amount: means for an eligible guarantee or eligible credit derivative, the lesser of the contractual notional amount of the credit risk mitigant and the exposure amount (or EAD for purposes of subpart E of this part) of the hedged exposure, multiplied by the percentage coverage of the credit risk mitigant. See 12 CFR 324.2
  • Electronic and Information technology: Includes information technology and any equipment or interconnected system or subsystem of equipment that is used in the creation, conversion, or duplication of data or information. See 29 CFR 1615.103
  • Eligible credit derivative: means a credit derivative in the form of a credit default swap, nth-to-default swap, total return swap, or any other form of credit derivative approved by the FCA, provided that:

    (1) The contract meets the requirements of an eligible guarantee and has been confirmed by the protection purchaser and the protection provider. See 12 CFR 628.2

  • Eligible credit derivative: means a credit derivative in the form of a credit default swap, nth-to-default swap, total return swap, or any other form of credit derivative approved by the FDIC, provided that:

    (1) The contract meets the requirements of an eligible guarantee and has been confirmed by the protection purchaser and the protection provider. See 12 CFR 324.2

  • Eligible guarantee: means a guarantee from an eligible guarantor that:

    (1) Is written. See 12 CFR 628.2

  • Eligible guarantee: means a guarantee that:

    (1) Is written. See 12 CFR 324.2

  • Eligible operational risk offsets: means amounts, not to exceed expected operational loss, that:

    (1) Are generated by internal business practices to absorb highly predictable and reasonably stable operational losses, including reserves calculated consistent with GAAP. See 12 CFR 324.101

  • Eligible project costs: Those expenses approved by the Agency for the Project as set forth in §4279. See 7 CFR 4279.202
  • Eligible servicer cash advance facility: means a servicer cash advance facility in which:

    (1) The servicer is entitled to full reimbursement of advances, except that a servicer may be obligated to make non-reimbursable advances for a particular underlying exposure if any such advance is contractually limited to an insignificant amount of the outstanding principal balance of that exposure. See 12 CFR 628.2

  • Eligible servicer cash advance facility: means a servicer cash advance facility in which:

    (1) The servicer is entitled to full reimbursement of advances, except that a servicer may be obligated to make non-reimbursable advances for a particular underlying exposure if any such advance is contractually limited to an insignificant amount of the outstanding principal balance of that exposure. See 12 CFR 324.2

  • Eligible technology: means , as determined by the Secretary:

    (1) A technology that is being adopted in a viable Commercial-scale operation of a Biorefinery that produces any one or more, or a combination, of an Advanced biofuel; a Renewable chemical; or a Biobased product; and

    (2) A technology not described in paragraph (1) of this definition that has been demonstrated to have technical and economic potential for commercial application in a Biorefinery that produces any one or more, or a combination, of an Advanced biofuel, a Renewable chemical or a Biobased product. See 7 CFR 4279.202

  • Equal Credit Opportunity Act: Prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because an applicant receives income from a public assistance program. Source: OCC
  • Equity derivative contract: means an equity-linked swap, purchased equity-linked option, forward equity-linked contract, or any other instrument linked to equities that gives rise to similar counterparty credit risks. See 12 CFR 628.2
  • Equity derivative contract: means an equity-linked swap, purchased equity-linked option, forward equity-linked contract, or any other instrument linked to equities that gives rise to similar counterparty credit risks. See 12 CFR 324.2
  • Exception: A QCCP that fails to meet the requirements of a QCCP in the future may still be treated as a QCCP under the conditions specified in §324. See 12 CFR 324.2
  • Exchange rate derivative contract: means a cross-currency interest rate swap, forward foreign-exchange contract, currency option purchased, or any other instrument linked to exchange rates that gives rise to similar counterparty credit risks. See 12 CFR 324.2
  • Exposure: means an amount at risk. See 12 CFR 628.2
  • Exposure category: means any of the wholesale, retail, securitization, or equity exposure categories. See 12 CFR 324.101
  • Facility: means all or any portion of buildings, structures, equipment, roads, walks, parking lots, rolling stock or other conveyances, or other real or personal property. See 29 CFR 1615.103
  • Farm cooperative: A business owned and controlled by Agricultural Producers that is incorporated, or otherwise recognized by the State in which it operates, as a cooperatively-operated business. See 7 CFR 4279.202
  • Farmer Cooperative Organization: An organization whose membership is composed of Farm Cooperatives. See 7 CFR 4279.202
  • FDIC-supervised institution: means any bank or state savings association. See 12 CFR 324.2
  • Feasibility study: An analysis by an independent qualified consultant or consultants of the economic, market, technical, financial, and management feasibility of a proposed Project or business in terms of its expectation for success. See 7 CFR 4279.202
  • Federal debt: Debt owed to the Federal government that is subject to collection under the Debt Collection Improvement Act of 1996, 31 U. See 7 CFR 4279.202
  • Federal Deposit Insurance Corporation: A government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System. Source: OCC
  • Fee simple: Absolute title to property with no limitations or restrictions regarding the person who may inherit it.
  • Fiduciary: A trustee, executor, or administrator.
  • Financial collateral: means collateral:

    (1) In the form of:

    (i) Cash on deposit at a depository institution or Federal Reserve Bank (including cash held for the System institution by a third-party custodian or trustee). See 12 CFR 628.2

  • Financial collateral: means collateral:

    (1) In the form of:

    (i) Cash on deposit with the FDIC-supervised institution (including cash held for the FDIC-supervised institution by a third-party custodian or trustee). See 12 CFR 324.2

  • First-lien residential mortgage exposure: means a residential mortgage exposure secured by a first lien. See 12 CFR 628.2
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Forbearance: A means of handling a delinquent loan. A
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Foreign bank: means a foreign bank as defined in §211. See 12 CFR 628.2
  • Forward agreement: means a legally binding contractual obligation to purchase assets with certain drawdown at a specified future date, not including commitments to make residential mortgage loans or forward foreign exchange contracts. See 12 CFR 628.2
  • Fraud: Intentional deception resulting in injury to another.
  • Freedom of Information Act: A federal law that mandates that all the records created and kept by federal agencies in the executive branch of government must be open for public inspection and copying. The only exceptions are those records that fall into one of nine exempted categories listed in the statute. Source: OCC
  • Future recovery: Funds anticipated to be collected by the Lender after a final loss claim is processed. See 7 CFR 4279.202
  • GAAP: means generally accepted accounting principles as used in the United States. See 12 CFR 628.2
  • GAAP: means generally accepted accounting principles as used in the United States. See 12 CFR 324.2
  • Gain-on-sale: means an increase in the equity capital of a System institution (as reported on the Call Report) resulting from a traditional securitization (other than an increase in equity capital resulting from the System institution's receipt of cash in connection with the securitization or reporting of a mortgage servicing asset on the Call Report). See 12 CFR 628.2
  • Gain-on-sale: means an increase in the equity capital of an FDIC-supervised institution (as reported on Schedule RC of the Call Report) resulting from a traditional securitization (other than an increase in equity capital resulting from the FDIC-supervised institution's receipt of cash in connection with the securitization or reporting of a mortgage servicing asset on Schedule RC of the Call Report. See 12 CFR 324.2
  • General obligation: means a bond or similar obligation that is backed by the full faith and credit of a public sector entity (PSE). See 12 CFR 628.2
  • Good cause: A justification representing a reasonable approach given:

    (1) The reasonably available alternatives. See 7 CFR 4279.202

  • Grossly negligent loan origination: A serious carelessness in originating the loan which is so great as to appear to be conscious. See 7 CFR 4279.202
  • Grossly negligent loan servicing: A serious carelessness in servicing the loan which is so great as to appear to be conscious. See 7 CFR 4279.202
  • Guarantee: means a financial guarantee, letter of credit, insurance, or other similar financial instrument (other than a credit derivative) that allows one party (beneficiary) to transfer the credit risk of one or more specific exposures (reference exposure) to another party (protection provider). See 12 CFR 628.2
  • Guarantee: means a financial guarantee, letter of credit, insurance, or other similar financial instrument (other than a credit derivative) that allows one party (beneficiary) to transfer the credit risk of one or more specific exposures (reference exposure) to another party (protection provider). See 12 CFR 324.2
  • Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
  • Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
  • Has a record of such an impairment: means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major life activities. See 29 CFR 1615.103
  • Holder: A Person, other than the Lender, who owns all or part of the guaranteed portion of the loan with no servicing responsibilities. See 7 CFR 4279.202
  • Home country: means the country where an entity is incorporated, chartered, or similarly established. See 12 CFR 628.2
  • In-house expenses: Expenses associated with activities that are routinely the responsibility of a Lender's internal staff or its agents. See 7 CFR 4279.202
  • Independent collateral: means financial collateral, other than variation margin, that is subject to a collateral agreement, or in which a FDIC-supervised institution has a perfected, first-priority security interest or, outside of the United States, the legal equivalent thereof (with the exception of cash on deposit. See 12 CFR 324.2
  • Indian tribe: This term has the meaning as defined in 25 U. See 7 CFR 4279.202
  • Individual with disabilities: means any person who has a physical or mental impairment that substantially limits one or more major life activities, has a record of such an impairment, or is regarded as having such an impairment. See 29 CFR 1615.103
  • Interest: A fee paid by a Borrower to a Lender as a form of compensation for the use of money. See 7 CFR 4279.202
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Interest rate derivative contract: means a single-currency interest rate swap, basis swap, forward rate agreement, purchased interest rate option, when-issued securities, or any other instrument linked to interest rates that gives rise to similar counterparty credit risks. See 12 CFR 324.2
  • Interest Termination Date: The date on which no further interest will be payable under the Loan Note Guarantee. See 7 CFR 4279.202
  • Investment fund: means a company:

    (1) Where all or substantially all of the assets of the company are financial assets. See 12 CFR 628.2

  • Investment fund: means a company:

    (1) Where all or substantially all of the assets of the company are financial assets. See 12 CFR 324.2

  • Investment grade: means that the entity to which the System institution is exposed through a loan or security, or the reference entity with respect to a credit derivative, has adequate capacity to meet financial commitments for the projected life of the asset or exposure. See 12 CFR 628.2
  • Investment grade: means that the entity to which the FDIC-supervised institution is exposed through a loan or security, or the reference entity with respect to a credit derivative, has adequate capacity to meet financial commitments for the projected life of the asset or exposure. See 12 CFR 324.2
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lender: The entity approved, or seeking to be approved, by the Agency to make, service, and collect the Agency guaranteed loan that is subject to this subpart. See 7 CFR 4279.202
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Liquidation expenses: Costs directly associated with the liquidation of Collateral, including preparing Collateral for sale (e. See 7 CFR 4279.202
  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • Loan agreement: The agreement between the Borrower and Lender containing the terms and conditions of the loan and the responsibilities of the Borrower and Lender. See 7 CFR 4279.202
  • Loan Note Guarantee: Form RD 4279-5, "Loan Note Guarantee" or predecessor form, issued and executed by the Agency containing the terms and conditions of the guarantee. See 7 CFR 4279.202
  • Loan packager: A Person, other than the applicant Borrower or Lender, that prepares a loan application package. See 7 CFR 4279.202
  • Loan service provider: A Person, other than the Lender of record, that provides loan servicing activities to the Lender. See 7 CFR 4279.202
  • Local government: A county, municipality, town, township, village, or other unit of general government below the State level, or Indian Tribe governments. See 7 CFR 4279.202
  • Local owner: An individual who owns any portion of an eligible Biorefinery and whose primary residence is located within a certain distance from the Biorefinery as specified by the Agency in a Notice published in the 7 CFR 4279.202
  • Major life activities: includes functions such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, and working. See 29 CFR 1615.103
  • Market value: The amount for which a property will sell for its highest and best use at a voluntary sale in an Arm's Length Transaction. See 7 CFR 4279.202
  • Material adverse change: Any change in circumstance associated with a guaranteed loan, including the Borrower's financial condition or Collateral that could be reasonably expected to jeopardize loan performance. See 7 CFR 4279.202
  • Member: means a borrower or former borrower from a System institution that holds voting or nonvoting cooperative equities of the institution. See 12 CFR 628.2
  • Minimum transfer amount: means the smallest amount of variation margin that may be transferred between counterparties to a netting set pursuant to the variation margin agreement. See 12 CFR 324.2
  • Misdemeanor: Usually a petty offense, a less serious crime than a felony, punishable by less than a year of confinement.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • NAD: National Appeals Division, or successor agency, in the United States Department of Agriculture. See 7 CFR 4279.202
  • National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
  • National Credit Union Administration: The federal regulatory agency that charters and supervises federal credit unions. (NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of federal credit unions.) Source: OCC
  • Negligent Loan Origination: The failure to perform those actions which a reasonably prudent lender would perform in originating its own portfolio of loans that are not guaranteed. See 7 CFR 4279.202
  • Negligent Loan Servicing: The failure to perform those services which a reasonably prudent lender would perform in servicing (including liquidation of) its own portfolio of loans that are not guaranteed. See 7 CFR 4279.202
  • Net independent collateral amount: means the fair value amount of the independent collateral, as adjusted by the standard supervisory haircuts under §324. See 12 CFR 324.2
  • Netting set: means a group of transactions with a single counterparty that are subject to a qualifying master netting agreement or a qualifying cross-product master netting agreement. See 12 CFR 628.2
  • Netting set: means a group of transactions with a single counterparty that are subject to a qualifying master netting agreement. See 12 CFR 324.2
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Obligor: means the legal entity or natural person contractually obligated on a wholesale exposure, except that an FDIC-supervised institution may treat the following exposures as having separate obligors:

    (1) Exposures to the same legal entity or natural person denominated in different currencies. See 12 CFR 324.101

  • Off-take agreement: The terms and conditions governing the sale and transportation of Biofuels, Biobased Products including Renewable Chemicals, Biobased Product Manufacturing end-user products, and electricity produced by the Borrower to another party. See 7 CFR 4279.202
  • Operational loss: means a loss (excluding insurance or tax effects) resulting from an operational loss event. See 12 CFR 324.101
  • Operational loss event: means an event that results in loss and is associated with any of the following seven operational loss event type categories:

    (1) Internal fraud, which means the operational loss event type category that comprises operational losses resulting from an act involving at least one internal party of a type intended to defraud, misappropriate property, or circumvent regulations, the law, or company policy excluding diversity- and discrimination-type events. See 12 CFR 324.101

  • Operational risk: means the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events (including legal risk but excluding strategic and reputational risk). See 12 CFR 324.101
  • Operational risk exposure: means the 99. See 12 CFR 324.101
  • Other retail exposure: means an exposure (other than a securitization exposure, an equity exposure, a residential mortgage exposure, a pre-sold construction loan, a qualifying revolving exposure, or the residual value portion of a lease exposure) that is managed as part of a segment of exposures with homogeneous risk characteristics, not on an individual-exposure basis, and is either:

    (1) An exposure to an individual for non-business purposes. See 12 CFR 324.101

  • Oversight: Committee review of the activities of a Federal agency or program.
  • Parity: A lien position whereby two or more Lenders share a security interest of equal priority in Collateral. See 7 CFR 4279.202
  • Participate: Sale of an interest in a loan by the lead Lender to one or more Lenders wherein the lead Lender retains the Promissory Note, Collateral securing the Promissory Note, and all responsibility for managing and servicing the loan. See 7 CFR 4279.202
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: An individual or entity. See 7 CFR 4279.202
  • Personal property: All property that is not real property.
  • physical or mental impairment: includes , but is not limited to, such diseases and conditions as orthopedic. See 29 CFR 1615.103
  • Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
  • Pre-sold construction loan: means any one-to-four family residential construction loan to a builder that meets the requirements of section 618(a)(1) or (2) of the Resolution Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991 (Pub. See 12 CFR 324.2
  • Presiding officer: A majority-party Senator who presides over the Senate and is charged with maintaining order and decorum, recognizing Members to speak, and interpreting the Senate's rules, practices and precedents.
  • Pro rata: On a proportional basis. See 7 CFR 4279.202
  • Program: Biorefinery Renewable Chemical, and Biobased Product Manufacturing Assistance Program often abbreviated as BAP. See 7 CFR 4279.202
  • Project: The facility or portion of a facility receiving funding under this subpart. See 7 CFR 4279.202
  • Promissory note: Evidence of debt with stipulated repayment terms. See 7 CFR 4279.202
  • Protective advance: An advance made by the Lender for the purpose of preserving and protecting the Collateral where the Borrower has failed to, and will not or cannot, meet its obligations to protect or preserve Collateral. See 7 CFR 4279.202
  • Public body: A municipality, county, or other political subdivision of a State. See 7 CFR 4279.202
  • Publicly traded: means traded on:

    (1) Any exchange registered with the Securities and Exchange Commission (SEC) as a national securities exchange under section 6 of the Securities Exchange Act. See 12 CFR 628.2

  • Qualifying master netting agreement: means a written, legally enforceable agreement provided that:

    (1) The agreement creates a single legal obligation for all individual transactions covered by the agreement upon an event of default following any stay permitted by paragraph (2) of this definition, including upon an event of receivership, conservatorship, insolvency, liquidation, or similar proceeding, of the counterparty. See 12 CFR 324.2

  • Qualifying master netting agreement: means a written, legally enforceable agreement provided that:

    (1) The agreement creates a single legal obligation for all individual transactions covered by the agreement upon an event of default following any stay permitted by paragraph (2) of this definition, including upon an event of receivership, conservatorship, insolvency, liquidation, or similar proceeding, of the counterparty. See 12 CFR 628.2

  • Quorum: The number of legislators that must be present to do business.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
  • Renewable biomass: (1) Materials, pre-commercial thinnings, or invasive species from National Forest System land or public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U. See 7 CFR 4279.202
  • Renewable chemical: A monomer, polymer, plastic, formulated product, or chemical substance produced from Renewable Biomass. See 7 CFR 4279.202
  • Repo-style transaction: means a repurchase or reverse repurchase transaction, or a securities borrowing or securities lending transaction, including a transaction in which the FDIC-supervised institution acts as agent for a customer and indemnifies the customer against loss, provided that:

    (1) The transaction is based solely on liquid and readily marketable securities, cash, or gold. See 12 CFR 324.2

  • Repo-style transaction: means a repurchase or reverse repurchase transaction, or a securities borrowing or securities lending transaction, including a transaction in which the System institution acts as agent for a customer and indemnifies the customer against loss, provided that:

    (1) The transaction is based solely on liquid and readily marketable securities, cash, or gold. See 12 CFR 628.2

  • Resecuritization: means a securitization which has more than one underlying exposure and in which one or more of the underlying exposures is a securitization exposure. See 12 CFR 324.2
  • Resecuritization: means a securitization which has more than one underlying exposure and in which one or more of the underlying exposures is a securitization exposure. See 12 CFR 628.2
  • Residential mortgage exposure: means an exposure (other than a securitization exposure or equity exposure) that is:

    (1) An exposure that is primarily secured by a first or subsequent lien on one-to-four family residential property, provided that the dwelling (including attached components such as garages, porches, and decks) represents at least 50 percent of the total appraised value of the collateral secured by the first or subsequent lien. See 12 CFR 628.2

  • Retail: (i) A retail exposure of an FDIC-supervised institution is in default if:

    (A) The exposure is 180 days past due, in the case of a residential mortgage exposure or revolving exposure. See 12 CFR 324.101

  • Retail exposure: means a residential mortgage exposure, a qualifying revolving exposure, or an other retail exposure. See 12 CFR 324.101
  • Retail exposure subcategory: means the residential mortgage exposure, qualifying revolving exposure, or other retail exposure subcategory. See 12 CFR 324.101
  • Retrofitting: The modification of a building or equipment to incorporate functions not included in the original design. See 7 CFR 4279.202
  • Revenue obligation: means a bond or similar obligation that is an obligation of a PSE, but which the PSE is committed to repay with revenues from the specific project financed rather than general tax funds. See 12 CFR 628.2
  • Risk parameter: means a variable used in determining risk-based capital requirements for wholesale and retail exposures, specifically probability of default (PD), loss given default (LGD), exposure at default (EAD), or effective maturity (M). See 12 CFR 324.101
  • Rural Development: The mission area of USDA that is comprised of the Rural Business-Cooperative Service, Rural Housing Service, and Rural Utilities Service and is under the policy direction and operational oversight of the Under Secretary for Rural Development. See 7 CFR 4279.202
  • Rural or rural area: See 7 U. See 7 CFR 4279.202
  • Savings and loan holding company: means a savings and loan holding company as defined in section 10 of the Home Owners' Loan Act (12 U. See 12 CFR 324.2
  • Scenario analysis: means a systematic process of obtaining expert opinions from business managers and risk management experts to derive reasoned assessments of the likelihood and loss impact of plausible high-severity operational losses. See 12 CFR 324.101
  • Secretary: The Secretary of the Department of the Agriculture. See 7 CFR 4279.202
  • Semi-work scale: A facility operating on a limited scale to provide final tests of a product or process. See 7 CFR 4279.202
  • Separate account: means a legally segregated pool of assets owned and held by an insurance company and maintained separately from the insurance company's general account assets for the benefit of an individual contract holder. See 12 CFR 324.2
  • Servicer cash advance facility: means a facility under which the servicer of the underlying exposures of a securitization may advance cash to ensure an uninterrupted flow of payments to investors in the securitization, including advances made to cover foreclosure costs or other expenses to facilitate the timely collection of the underlying exposures. See 12 CFR 324.2
  • Servicer cash advance facility: means a facility under which the servicer of the underlying exposures of a securitization may advance cash to ensure an uninterrupted flow of payments to investors in the securitization, including advances made to cover foreclosure costs or other expenses to facilitate the timely collection of the underlying exposures. See 12 CFR 628.2
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Small Business Act: means the Small Business Act (15 U. See 12 CFR 324.2
  • Small Business Act: means the Small Business Act (15 U. See 12 CFR 628.2
  • Small Business Investment Act: means the Small Business Investment Act of 1958 (15 U. See 12 CFR 324.2
  • Sovereign: means a central government (including the U. See 12 CFR 324.2
  • Sovereign: means a central government (including the U. See 12 CFR 628.2
  • Sovereign default: means noncompliance by a sovereign with its external debt service obligations or the inability or unwillingness of a sovereign government to service an existing loan according to its original terms, as evidenced by failure to pay principal and interest timely and fully, arrearages, or restructuring. See 12 CFR 628.2
  • Specific wrong-way risk: means wrong-way risk that arises when either:

    (1) The counterparty and issuer of the collateral supporting the transaction. See 12 CFR 324.2

  • Spreadsheet: A table containing data from a series of financial statements of a business over a period of time. See 7 CFR 4279.202
  • Standardized market risk-weighted assets: means the standardized measure for market risk calculated under §324. See 12 CFR 324.2
  • State: Any of the 50 States of the U. See 7 CFR 4279.202
  • Statute: A law passed by a legislature.
  • Subordination: The reduction of the Lender's lien priority on certain assets pledged to secure payment of the guaranteed loan to a position junior to, or on Parity with, the lien position of another loan in order for the Borrower to obtain additional financing, not guaranteed by the Agency, from the Lender or a third party. See 7 CFR 4279.202
  • Subpoena: A command to a witness to appear and give testimony.
  • Synthetic securitization: means a transaction in which:

    (1) All or a portion of the credit risk of one or more underlying exposures is retained or transferred to one or more third parties through the use of one or more credit derivatives or guarantees (other than a guarantee that transfers only the credit risk of an individual retail exposure). See 12 CFR 324.2

  • Synthetic securitization: means a transaction in which:

    (1) All or a portion of the credit risk of one or more underlying exposures is retained or transferred to one or more third parties through the use of one or more credit derivatives or guarantees (other than a guarantee that transfers only the credit risk of an individual retail exposure). See 12 CFR 628.2

  • System bank: means a Farm Credit Bank, an agricultural credit bank, and a bank for cooperatives. See 12 CFR 628.2
  • System institution: means a System bank, an association of the Farm Credit System, Farm Credit Leasing Services Corporation, and their successors, and any other institution chartered by the FCA that the FCA determines should be considered a System institution for the purposes of this part. See 12 CFR 628.2
  • Technologically New: New or significantly improved equipment, process or production method to deliver a product, or adoption of equipment, process or production method to deliver a new or significantly improved product, of which the first Commercial-Scale use in the United States is within the last five years and is used in not more than three Commercial-Scale facilities in the United States. See 7 CFR 4279.202
  • Total capital: means the sum of tier 1 capital and tier 2 capital. See 12 CFR 324.2
  • Total capital: means the sum of tier 1 capital and tier 2 capital. See 12 CFR 628.2
  • Total capital minority interest: means the total capital of a consolidated subsidiary of an FDIC-supervised institution that is not owned by the FDIC-supervised institution. See 12 CFR 324.2
  • Total project costs: The sum of all costs associated with a completed Project. See 7 CFR 4279.202
  • Traditional securitization: means a transaction in which:

    (1) All or a portion of the credit risk of one or more underlying exposures is transferred to one or more third parties other than through the use of credit derivatives or guarantees. See 12 CFR 324.2

  • Traditional securitization: means a transaction in which:

    (1) All or a portion of the credit risk of one or more underlying exposures is transferred to one or more third parties other than through the use of credit derivatives or guarantees. See 12 CFR 628.2

  • Tranche: means all securitization exposures associated with a securitization that have the same seniority level. See 12 CFR 324.2
  • Tranche: means all securitization exposures associated with a securitization that have the same seniority level. See 12 CFR 628.2
  • Transfer and assumption: The conveyance by a Borrower to an assuming Borrower of the assets, Collateral, and liabilities of the loan in return for the assuming Borrower's binding promise to pay the outstanding loan debt approved by the Agency. See 7 CFR 4279.202
  • Trustee: A person or institution holding and administering property in trust.
  • Underlying exposures: means one or more exposures that have been securitized in a securitization transaction. See 12 CFR 324.2
  • Underlying exposures: means one or more exposures that have been securitized in a securitization transaction. See 12 CFR 628.2
  • Unit of measure: means the level (for example, organizational unit or operational loss event type) at which the FDIC-supervised institution's operational risk quantification system generates a separate distribution of potential operational losses. See 12 CFR 324.101
  • Usury: Charging an illegally high interest rate on a loan. Source: OCC
  • Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
  • Variation margin: means financial collateral that is subject to a collateral agreement provided by one party to its counterparty to meet the performance of the first party's obligations under one or more transactions between the parties as a result of a change in value of such obligations since the last time such financial collateral was provided. See 12 CFR 324.2
  • Variation margin agreement: means an agreement to collect or post variation margin. See 12 CFR 324.2
  • Variation margin amount: means the fair value amount of the variation margin, as adjusted by the standard supervisory haircuts under §324. See 12 CFR 324.2
  • Variation margin threshold: means the amount of credit exposure of a FDIC-supervised institution to its counterparty that, if exceeded, would require the counterparty to post variation margin to the FDIC-supervised institution pursuant to the variation margin agreement. See 12 CFR 324.2
  • Volatility derivative contract: means a derivative contract in which the payoff of the derivative contract explicitly depends on a measure of the volatility of an underlying risk factor to the derivative contract. See 12 CFR 324.2
  • Well capitalized: Federal Deposit Insurance Corporation (FDIC) requirements used to determine if a lending institution has enough capital on hand to withstand negative effects in the market, and which the Agency uses to determine Lender eligibility. See 7 CFR 4279.202
  • Wholesale: (i) An FDIC-supervised institution's wholesale obligor is in default if:

    (A) The FDIC-supervised institution determines that the obligor is unlikely to pay its credit obligations to the FDIC-supervised institution in full, without recourse by the FDIC-supervised institution to actions such as realizing collateral (if held). See 12 CFR 324.101

  • Wholesale exposure: means a credit exposure to a company, natural person, sovereign, or governmental entity (other than a securitization exposure, retail exposure, pre-sold construction loan, or equity exposure). See 12 CFR 324.101
  • Working capital: Current assets available to support a business's operations. See 7 CFR 4279.202
  • Wrong-way risk: means the risk that arises when an exposure to a particular counterparty is positively correlated with the probability of default of such counterparty itself. See 12 CFR 324.2