Common use of Estimated Loss Payments Clause in Contracts

Estimated Loss Payments. a. If a borrower has filed for protection under a reorganization bankruptcy, the Lender will request a tentative estimated loss payment of accrued interest and prin- cipal written off. This request can only be made after the bankruptcy plan is confirmed by the court. Only one estimated loss pay- ment is allowed during the reorganization bankruptcy. All subsequent claims during re- organization will be considered revisions to the initial estimated loss. A revised esti- mated loss payment may be processed by FmHA or its successor agency under Public Law 103–354, at its option, in accordance with any court approved changes in the reorga- nization plan. At the time the performance under the confirmed reorganization plan has been completed, the Lender is responsible for providing FmHA or its successor agency under Public Law 103–354 with the docu- mentation necessary to review and adjust the estimated loss claim to (a) reflect the ac- tual principal and interest reduction on any part of the guaranteed debt determined to be unsecured and (b) to reimburse the Lender for any court ordered interest rate reduction during the term of the reorganization plan.

Appears in 5 contracts

Samples: www.govinfo.gov, www.govinfo.gov, www.govinfo.gov

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