§1735.90. Preliminary approvals.
7 C.F.R. § 1735.90
In cases where the borrower's schedule for completion of the proposed action leaves insufficient time for RUS to prepare and process the required documentation, including new mortgages and replacement notes, the borrower may request RUS to give preliminary approval to the acquisition or merger. However, the borrower may not obtain additional loan funds until the documentation is completed to RUS's satisfaction.
Consideration of preliminary approvals generally will not be practicable in cases in which compensating benefits are required.
RUS will not give preliminary approval when the lien of the mortgage on after-acquired property may be affected.
Before RUS will grant preliminary approval, the borrower shall submit:
Merger or acquisition documents required by state law;
Acquisition agreements covering the transaction;
Any required franchises, licenses, and permits;
All required regulatory body approvals;
All required corporate actions;
Leases, contracts, and evidence of titles to be assigned to the purchaser; and
The latest audited financial statements for any nonborrowers involved.
If the information in (d) of this section is acceptable to RUS, the borrower may proceed with the closing.
Notes, amendments, and revision history
Amendments
[54 FR 14626, Apr. 12, 1989, unless otherwise noted. Redesignated at 55 FR 39395, Sept. 27, 1990.]
Source
Source: 54 FR 14626, Apr. 12, 1989, unless otherwise noted. Redesignated at 55 FR 39395, Sept. 27, 1990.
Authority
Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.
Source
Source: 54 FR 13352, Apr. 3, 1989, unless otherwise noted. Redesignated at 55 FR 39395, Sept. 27, 1990.
Amendments
[54 FR 14626, Apr. 12, 1989, unless otherwise noted. Redesignated at 55 FR 39395, Sept. 27, 1990.]