The following general definitions are applicable to the terms used in this part:
The Rural Utilities Service which is within the Rural Development mission area of the United States Department of Agriculture
or its successor agencies with authority delegated by the Secretary of Agriculture to administer the Water and Waste Disposal
prescribed form to request an Agency
guarantee (available in any Agency
Arm's length transaction.
The sale, release, or disposition of assets in which the title to the property passes to a ready, willing, and able third party who is not affiliated with, or related to, and has no security, monetary, or stockholder interest in the borrower
or transferor at the time of the transaction.
Assignment Guarantee Agreement.
The signed agreement among the Agency
, the lender
, and the holder
setting forth the terms and conditions of an assignment of the guaranteed portion of a loan or any part thereof (available in any Agency
The entity that borrows money from the lender
Conditional Commitment for Guarantee.
's written statement to the lender
that the material submitted is approved subject to the completion of all conditions and requirements contained in the commitment (available in any Agency
The person or entity (other than the lender) who holds all or a part of the guaranteed portion of the loan with no servicing responsibilities. When the lender
assigns part or all of the guaranteed portion of the loan to an assignee, the assignee becomes a holder
when the Assignment Guarantee Agreement
is signed by all parties.
Immediate family. Individuals who are closely related by blood or by marriage, or within the same household, such as a spouse, parent, child, brother, sister, aunt, uncle, grandparent, grandchild, niece, or nephew.
include, but are not limited to, employees' salaries, retainers being paid to lawyers, travel, and overhead.
Fire, windstorm, lightning, hail, explosion, riot, civil commotion, aircraft, vehicles, smoke, builder's risk, liability, property damage, flood or mudslide, worker's compensation, fidelity bond, malpractice, or any similar insurance
that is available and needed to protect the security or that is required by law.
Two or more lenders (or any combination of lenders and other financial sources) making separate relatively contemporaneous loans or grants to supply the funds required by one borrower
. For example, such joint financing
may consist of the Agency
's financial assistance with the Economic Development Administration
, Department of Housing and Urban Development
(HUD), or other Federal and State
agencies, and private and quasi-public financial institutions.
The person or organization making and responsible for servicing the loan. The lender
is also referred to in this part as the applicant who is requesting a guarantee during the preapplication and application
stage of processing.
Loan Note Guarantee.
The signed commitment issued by the Agency
containing the terms and conditions of the guarantee of an identified loan (available in any Agency
The amount for which property would sell for its highest and best use at a voluntary sale in an arm's length transaction
An evidence of debt. In those instances where the Agency
guarantees a bond issue, “note” shall also be construed to include a bond or other evidence of indebtedness, as appropriate.
Sale of an interest in a loan in which the lender
retains the note
securing the note
, and all responsibility for loan servicing and liquidation.
Principals of borrowers.
The owners, officers, directors, entities, and supervisors directly involved in the operation and management of the borrower
Advances made by the lender
for the purpose of preserving and protecting the collateral
where the debtor has failed to, and will not or cannot, meet obligations to protect or preserve collateral
Report of loss.
form used by lenders when reporting a loss under an Agency
guarantee (available in any Agency
Rural and rural area. Any area not in a city or town with a population in excess of 10,000 inhabitants, according to the latest decennial census of the United States
The area reasonably expected to be served by the project being financed by the guaranteed loan
State. Any of the 50 States, the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, Commonwealth of the Northern Mariana Islands, Republic of the Marshall Islands, Republic of Palau, and the Federated States of Micronesia.
State Bond Banks and State Bond Pools.
An entity authorized by the State
to issue State
debt instruments and utilize the funds received to finance the construction or improvement of drinking water or waste disposal
The Rural Development State Director
or the staff member who has been delegated authority to perform action on behalf of the State Director
Any change in the purpose of the loan or any change in the financial condition of the borrower
or the collateral
which would jeopardize the performance of the loan.
Transfer and assumption.
The conveyance by a debtor to an assuming party of the assets, collateral
, and liabilities of the loan in return for the assuming party's binding promise to pay the outstanding debt.
Waste disposal. Sanitary sewer (treatment and collection), solid waste, and storm drainage facilities.