7 CFR 772.10 - Transfer and assumption
(4) The transferee will assume an amount at least equal to the present market value of the loan security;
(5) The transferee documents the ability to pay the AMP loan debt as provided in the assumption agreement and has the legal capacity to enter into the contract;
(6) If there is a lien or judgment against the Agency security being transferred, the transferee is subject to such claims. The transferee must document the ability to repay the claims against the land; and
(7) If the transfer is to one or more members of the borrower's organization and there is no new member, there must not be a loss to the Government.
(b) Withdrawal. Withdrawal of a member and transfer of the withdrawing member's interest in the Association to a new eligible member may be approved by the Agency if all of the following conditions are met:
(1) The entire unpaid balance of the withdrawing member's share of the AMP loan must be assumed by the new member;
(2) In accordance with the Association's governing articles, the required number of remaining members must agree to accept any new member; and
(c) Requesting a transfer and assumption. The transferor/borrower and transferee/applicant must submit:
(d) Terms. The interest rate and term of the assumed AMP loan will not be changed. Any delinquent principal and interest of the AMP loan must be paid current before the transfer and assumption will be approved by the Agency.
(e) Release of liability. Transferors may be released from liability with respect to an AMP loan by the Agency when:
(2) Less than the full amount of the debt is assumed, and the balance remaining will be serviced in accordance with § 772.9(c).
Title 7 published on 2014-01-01
no entries appear in the Federal Register after this date.