rural-development · Rural Utilities Service · Rule · Published 2011-07-19 · Effective 2011-09-02 · 76 FR 42469
Document
Document number
2011-18010
Federal Register citation
76 FR 42469
CFR reference
7 CFR 4279
Type
Rule
Action
Direct final rule.
Category
rural-development
Sub-agency
Rural Utilities Service
Publication date
2011-07-19
Effective date
2011-09-02
Abstract
The Rural Business-Cooperative Service is amending its regulations for the Business and Industry Guaranteed Loan Program to ensure the Agency has sufficient right(s) for reimbursement when an Agency guaranteed portion of a loan is sold to a holder. This action is necessary because the rule is not sufficiently clear that the use of loan funds for purposes not approved by the Agency is a reason to find the guarantee unenforceable regardless of whether the guaranteed portion of the loan has been sold to a holder. This action ensures the Agency has sufficient rights for reimbursement when an Agency guaranteed portion of the loan is sold to a holder.