7 CFR 762.103 - Full faith and credit.

§ 762.103 Full faith and credit.

(a)Fraud and misrepresentation. The loan guarantee constitutes an obligation supported by the full faith and credit of the United States. The Agency may contest the guarantee only in cases of fraud or misrepresentation by a lender or holder, in which:

(1) The lender or holder had actual knowledge of the fraud or misrepresentation at the time it became the lender or holder, or

(2) The lender or holder participated in or condoned the fraud or misrepresentation.

(b)Lender violations. The loan guarantee cannot be enforced by the lender, regardless of when the Agency discovers the violation, to the extent that the loss is a result of:

(1) Violation of usury laws;

(2) Negligent servicing;

(3) Failure to obtain the required security; or,

(4) Failure to use loan funds for purposes specifically approved by the Agency.

(c)Enforcement by holder. The guarantee and right to require purchase will be directly enforceable by the holder even if:

(1) The loan guarantee is contestable based on the lender's fraud or misrepresentation; or

(2) The loan note guarantee is unenforceable by the lender based on a lender violation.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code
U.S. Code: Title 7 - AGRICULTURE

Title 7 published on 10-May-2017 03:42

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 7 CFR Part 762 after this date.

  • 2016-10-21; vol. 81 # 204 - Friday, October 21, 2016
    1. 81 FR 72686 - EZ Guarantee Program and Micro Lender Program (MLP) Status
      GPO FDSys XML | Text
      DEPARTMENT OF AGRICULTURE, Farm Service Agency
      Final rule.
        Effective Date: October 21, 2016. Comment Dates: We will consider comments on the Paperwork Reduction Act that we receive by: December 20, 2016. We will consider comments on the regulatory changes that we receive by: January 19, 2017.
      7 CFR Parts 761 and 762