Substitution of Borrowers. Any Borrower (the “Existing Borrower”) may be released from its obligations under this Agreement in relation to the Facility provided that another Eligible Company (the “Substitute Borrower”) assumes the obligations in respect thereof of the Existing Borrower and provided further that:
3.9.1 any such substitution shall take effect on and from the later of the day upon which the Facility Agent notifies the Obligors’ Agent in writing that it is satisfied with the compliance with the matters set out in sub-clauses 3.9.3 and 3.9.4 of this Clause 3.9 and the date for substitution specified in the relevant Notice of Proposed Substitution;
3.9.2 a Notice of Proposed Substitution, substantially in the form of Schedule 6 (Notice of Proposed Substitution) has been delivered by the Obligors’ Agent to the Facility Agent not less than 14 days prior to the proposed substitution;
Substitution of Borrowers. FmHA or its successor agency under Public Law 103–354 will not issue a Loan Note Guarantee to the lender who is in re- ceipt of a Form FmHA or its successor agency under Public Law 103–354 449–14 with an obligation in a previous fiscal year if the originally approved bor- rower (including changes in legal enti- ty) or owners are changed. The only ex- ception to this provision prohibiting a change in the legal entity’s form of ownership is when the originally ap- proved borrower or owner is replaced with substantially the same individ- uals with substantially the same inter- ests, as originally approved and identi- fied in the Form FmHA or its successor agency under Public Law 103–354 449–1, item 15. All requests for exceptions must be approved by the FmHA or its successor agency under Public Law 103– 354 National Office.
Substitution of Borrowers. Any Borrower (the "EXISTING BORROWER") may be released from its obligations under this Agreement in relation to the Facility provided that another Eligible Company (the "SUBSTITUTE BORROWER") assumes the obligations in respect thereof of the Existing Borrower and provided further that:
(i) any such substitution shall take effect on and from the later of the day upon which the Facility Agent notifies the Borrowers' Agent in writing that it is satisfied with the compliance with the matters set out in paragraphs (iii) and (iv) below and the date for substitution specified in the relevant Notice of Proposed Substitution;
(ii) a Notice of Proposed Substitution, substantially in the form of Schedule 7 has been delivered by the Borrowers' Agent to the Facility Agent not less than 14 days prior to the proposed substitution;
(iii) the Substitute Borrower enters into a Novation Agreement with the Existing Borrower, the Borrowers' Agent and the Facility Agent on behalf of the Lenders in the form of Schedule 8 together with such amendments as the Facility Agent may reasonably require; and
(iv) the documents referred to in clause 4.2 shall have been provided to the Facility Agent.
Substitution of Borrowers. The State Director will review any request for exceptions to substitution of borrowers and forward such requests with a memorandum of facts and recommendations to the Na- tional Office for a decision. The National Of- fice will not approve any request where the legal entity is changed, such as from a cor- poration to a partnership, etc., or if the own- ership changes more than 20 percent.
Substitution of Borrowers. The State Director will review any request for exceptions to substitution of borrowers and forward such requests with a memorandum of facts and recommendations to the Na- tional Office for a decision. The National Of- fice will not approve any request where the legal entity is changed, such as from a cor- poration to a partnership, etc., or if the own- ership changes more than 20 percent.
X. Xxx (c) Changes in terms and conditions in Form FmHA or its successor agency under Pub- lic Law 103–354 449–14. The State Director will review any request for changes to Form FmHA or its successor agency under Public Law 103–354 449–14. Only those changes which do not materially affect the project, its ca- pacity, employment, original projections or credit factors may be approved. Changes in legal entities or where tax considerations are the reason for change will not be approved when modifying any loan guarantee or condi- tions of guarantee. State Directors may ap- prove these changes in terms and conditions if the loan is within the State Director’s loan approval authority and the change will not result in a major change in the scope of the project. Changes in terms and conditions for loans in excess of the State Director’s loan approval authority, must be submitted to the National Office with a memorandum of facts and recommendations for review and concurrence. In order to identify the number and types of action taken, the following procedures are to be followed when requests of this type are approved by FmHA or its successor agency under Public Law 103–354.
1. Start with the number 1 when the first modification is approved and enter this num- ber in the upper right hand corner of the Letter of Concurrence and on the related ‘‘Modification or Administration Action’’ sheet.
2. Next to the modified wording on the work copy of the Conditional Commitment for Guarantee and the Term Loan Agreement or any form which has been modified, pencil in a short cross reference to the modification and identify the number given it.
3. File the copies of the ‘‘Modification or Administrative Action’’ sheet and related Letters of Concurrence numerically in the docket directly on top of the affected origi- nal documents of conditions.
4. This order of recordkeeping should in- clude any requests which were declined by the National Office. [52 FR 6501, Mar. 4, 1987, as amended at 53 FR 26413, July 12, 1988; 57 FR 4359, Feb. 5, 1992; 61 FR 18495, Apr. 26, 1996] The lender is responsible for...
