Mineral leases. The borrower must request Agency consent to lease any mineral rights used as security for FLP loans. (1) For FO loans made from Decem- ber 23, 1985, to February 7, 2014, and loans other than FO loans secured by real estate and made from December 23, 1985, to November 1, 2013, the value of the mineral rights must have been included in the original appraisal in order for the Agency to obtain a secu- rity interest in any oil, gas, and other mineral associated with the real estate security. (2) For all other loans not covered by paragraph (b)(1) of this section, the Agency will obtain a security interest in any oil, gas, and other mineral on or under the real estate pledged as collat- eral in accordance with the applicable security agreement, regardless of whether such minerals were included in the original appraisal. (3) The Agency may consent to a mineral lease if the proposed use of the leased rights will not adversely affect either: (i) The Agency’s security interest; or (ii) Compliance with any applicable environmental requirements of part 799 of this chapter. (4) The term of the mineral lease is not limited.
Appears in 2 contracts
Samples: Training Agreement, Lease Agreement
Mineral leases. The borrower must request Agency consent to lease any mineral rights used as security for FLP loans.
(1) For FO loans made from Decem- ber 23, 1985, to February 7, 2014, and loans other than FO loans secured by real estate and made from December 23, 1985, to November 1, 2013, the value of the mineral rights must have been included in the original appraisal in order for the Agency to obtain a secu- rity interest in any oil, gas, and other mineral associated with the real estate security.
(2) For all other loans not covered by paragraph (b)(1) of this section, the Agency will obtain a security interest in any oil, gas, and other mineral on or under the real estate pledged as collat- eral in accordance with the applicable security agreement, regardless of whether such minerals were included in the original appraisal.
(3) The Agency may consent to a mineral lease if the proposed use of the leased rights will not adversely affect either:
(i) The Agency’s security interest; or
(ii) Compliance with any applicable environmental requirements of part 799 of this chapter.
(4) The term of the mineral lease is not limited.
Appears in 2 contracts
Samples: Training Agreement, Training Agreement
Mineral leases. The borrower must request Agency consent to lease any mineral rights used as security for FLP loans.
(1) For FO loans made from Decem- ber 23, 1985, to February 7, 2014, and loans other than FO loans secured by real estate and made from December 23, 1985, to November 1, 2013, the value of the mineral rights must have been included in the original appraisal in order for the Agency to obtain a secu- rity interest in any oil, gas, and other mineral associated with the real estate security.
(2) For all other loans not covered by paragraph (b)(1) of this section, the Agency will obtain a security interest in any oil, gas, and other mineral on or under the real estate pledged as collat- eral in accordance with the applicable security agreement, regardless of whether such minerals were included in the original appraisal.
(3) The Agency may consent to a mineral lease if the proposed use of the leased rights will not adversely affect either:
(i) The Agency’s security interest; or
(ii) Compliance with any applicable environmental requirements of part 799 of this chapter.
(4) The term of the mineral lease is not limited.
Appears in 1 contract
Samples: Severance Agreement
