7 CFR 4287.336
§ 4287.336 Lender failure.
United States · 7 CFR — Agriculture · Status: effective
Cite this
- Citation
- 7 CFR 4287.336, § 4287.336 Lender failure, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/31418
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Full text
(a) The acquiring Lender must comply with 7 CFR parts 4279, subpart C and 4287, subpart D and must take such action that a reasonable Lender would take if it did not have a Loan Note Guarantee to protect the Lender and Agency's mutual interest. The Lender cannot arbitrarily change the Lender's Agreement and related documents on the guaranteed loan, and the Agency will make the successor to the failed institution aware of the statutory and regulatory requirements.
(b) In the event of a Default and the guaranteed loan is liquidated by the FDIC rather than being sold to another Lender, the Agency will pay losses and share in costs as if the FDIC were an approved new Lender.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.