Loans covered. The Agency serv- ices direct FLP loans under the poli- cies contained in this part. This part is not applicable to Non-program loans, except where noted. Abbreviations and definitions for terms used in this part are provided in § 761.2 of this chapter. (a) A borrower with limited resource interest rate loans is required to pro- vide the Agency annually the oper- ation’s financial information to deter- mine if the borrower can afford to pay a higher interest rate on the loan. The Agency will review the information provided in accordance with § 761.105 of this chapter. (b) If the borrower’s farm operating plan shows that the debt service mar- gin exceeds 110 percent, the Agency will increase the interest rate on the loans with a limited resource interest rate until: (1) A further increase in the interest rate results in a debt service margin of less than 110 percent; or (2) The interest rate is equal to the interest rate currently in effect for the type of loan. (c) Except as provided in paragraph (d) of this section, the Agency will in- crease the limited resource interest rate to the current interest rate for the type of loan, if the borrower: (1) Purchases items not planned dur- ing the term of the loan; (2) Refuses to submit information the Agency requests for use in reviewing the borrower’s financial condition; (3) Ceases farming, as described in § 765.253; or (4) Is ineligible due to disqualifica- tion resulting from Federal crop insur- ance violation according to 7 CFR part 718.
Appears in 4 contracts
Samples: Training Agreement, Training Agreement, Training Agreement
