§ 4279.220 General conditions of guarantee
§ 4279.221 Rights and liabilities
§ 4279.222 Payments
§ 4279.223 Sale or assignment of guaranteed loan
§ 4279.224 Minimum retention
§ 4279.225 Repurchase from Holder
§ 4279.226 Replacement of document
§ 4279.227 Equal Credit Opportunity Act

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

  • 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
  • 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
  • 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
  • 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
  • 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
  • Collateral: The asset(s) pledged by the Borrower to secure the loan. See 7 CFR 4279.202
  • 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.
  • 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.
  • 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
  • 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
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Forbearance: A means of handling a delinquent loan. A
  • Fraud: Intentional deception resulting in injury to another.
  • 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
  • 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
  • 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 Termination Date: The date on which no further interest will be payable under the Loan Note Guarantee. See 7 CFR 4279.202
  • 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
  • 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
  • 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
  • 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.
  • 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
  • Person: An individual or entity. See 7 CFR 4279.202
  • 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
  • Promissory note: Evidence of debt with stipulated repayment terms. See 7 CFR 4279.202
  • 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
  • Secretary: The Secretary of the Department of the Agriculture. See 7 CFR 4279.202
  • State: Any of the 50 States of the U. See 7 CFR 4279.202
  • Usury: Charging an illegally high interest rate on a loan. Source: OCC