(4) The borrower has not been convicted of planting, growing, growing, producing, harvesting or storing a controlled substance under federal or state law. For the purposes of this provision, `borrower` means in particular a natural or legal borrower and any shareholder who is a member, partner or co-operator of a borrowing company and any member, shareholder, partner or co-operator of a borrowing undertaking. The “controlled substance” is defined in Part 1308 of 21 CFR. The borrower is not entitled to subordination for the harvest year in which the conviction took place and the following four harvest years. Applicants must certify on the Agency`s application form that they and their members, in the case of an entity, have not been convicted of such a crime; (b) Conditions. Agency privileges may be subordinated to a lien of another creditor if all of the following conditions are met: (c) Subordination to grant a secured loan. In addition to the requirements of this Division, subordinations on movable securities for the granting of a secured loan shall be approved in accordance with section 1980.108 of Subdivision B of Part 1980 of this Chapter. 6. The agency loan shall still be sufficiently secured after subordination or the value of the loan guarantee shall be increased by at least the amount of advances to be made by way of subordination.
1. Where the lien on the basic guarantee of movable property exists, the amount of the subordination shall be necessary to provide the creditor with the security necessary for the granting of the loan; (e) debt restructuring of existing agencies. The Agency may accept the rescheduling of an existing debt of the Agency if subordination to the debts of another lender is granted. Rescheduling is permitted only if it is reasonable to expect the borrower to meet all payments currently scheduled for due date and the conditions of Subdivision S of Part 1951 of this Chapter are met. 5. The borrower may document the ability to repay the total amount due under subordination and to pay all other debt payments provided for the relevant operating cycle. and (2) approval of subordination is limited to a certain amount and the loan to be secured by subordination is concluded within a reasonable time; (3) In respect of the same security right, only subordination to a creditor may be pending at any given time; (2) Subordination shall allow another creditor to refinance other debts or to grant loans for approved direct lending purposes. (f) Evaluation. The Agency shall draw up a substantive evaluation report if the existing evaluation report is more than 2 years old or is not sufficient to draw conclusions from this section. The agency may use an appraisal submitted by the borrower if it is substantially similar to Form RD 440-21, “Valuation of Movable Property,” and if it has been prepared by a chartered appraiser.
a) Purposes. Subject to the limitations set forth in paragraph (b) of this section, the Agency`s privileges may be subject to the lien of another creditor in any of the following situations: Learn more about FindLaw`s newsletters, including our Terms of Use and Privacy Policy. (1) The prior lien becomes due promptly or has become due and the previous lien wishes to extend or renew the obligation, or the obligation may be refinanced. The Agency`s position of relative privilege must be maintained; and This website is protected by reCAPTCHA and Google`s privacy policy and terms of service apply. (d) Forms. Obituaries shall be requested and signed on the Agency forms available at each Agency office or on any other form approved by the Agency. The following state order pages link to this page. The e-mail address cannot be subscribed. Please try again.. .