Terms Used In CFR > Title 7 > Chapter XLII > Part 4279 > Subpart C > Loan Processing
- Agency: The Rural Business-Cooperative Service or successor Agency assigned by the Secretary of Agriculture to administer the Program. See 7 CFR 4279.202
- 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.
- 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
- 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
- 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
- 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
- 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.
- Eligible project costs: Those expenses approved by the Agency for the Project as set forth in §4279. See 7 CFR 4279.202
- 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
- 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
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- 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
- 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
- Lien: A claim against real or personal property in satisfaction of a debt.
- 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
- 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
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- 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
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Retrofitting: The modification of a building or equipment to incorporate functions not included in the original design. See 7 CFR 4279.202
- 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
- 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
- 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.
- Working capital: Current assets available to support a business's operations. See 7 CFR 4279.202