---
kind: "section"
citation: "7 C.F.R. § 1752.6"
title: "7"
number: "1752.6"
heading: "Request for special servicing action."
url: "https://uscodex.org/cfr/7/1752.6"
---

# §1752.6. Request for special servicing action.

- (a) **Special servicing actions include, but are not limited to, one or more of the following—**
  - (1) Consent to additional, unsecured debt;
  - (2) Parity lien;
  - (3) Reamortization or rescheduling of debt payments;
  - (4) Deferment of principal and/or interest;
  - (5) Interest rate adjustment;
  - (6) Transfer of collateral and assumption of debt;
  - (7) Sale or exchange of loan collateral;
  - (8) Sale of the note; and
  - (9) **Debt settlement.**
- (b) In order for the Agency to consider one or more of the curative actions cited in [paragraph (a)](#a) of this section, the Borrower must submit a written request to RUS.
  - (1) The written request must contain the following items:
    - (i) **A detailed explanation of the request and why it is needed.**
    - (ii) **Most recent audited financial statements for the Borrower.**
    - (iii) Borrower's Pro Forma 5-year financial forecast, which includes an Income Statement, Balance Sheet, and Statement of Cash Flows, 2 years of historical data, current year data and a 5-year forecast, with detailed supporting assumptions. Additionally, in order to request assistance under this [paragraph (b)(1)(iii)](#b-1-iii), the Borrower must make a showing that the account is delinquent and cannot be brought current within one year, or that the Borrower will become delinquent within 24 months, as demonstrated in the Pro Forma.
    - (iv) **Existing and projected subscriber numbers and service tiers, along with pricing for each tier.** Additionally, for companies receiving support from the Federal Communications Commission, a detailed forecast of the support revenue, certified by a cost consultant, must be included.
    - (v) Current organizational chart for the Borrower, related entities, and affiliated companies, as well as information relating to ownership interest in the Borrower and its related entities.
    - (vi) **A complete list of all collateral and steps the Borrower is taking to preserve the collateral.**
  - (2) The Agency may request the additional documents in [paragraphs (b)(2)(i) through (iv)](#b-2-i..b-2-iv) of this section after reviewing the Borrower's servicing request:
    - (i) An appraisal in order to determine the adequacy of loan security or repayment ability;
    - (ii) An itemized list of estimated liquidation expenses expected to be incurred along with justification for each expense;
    - (iii) A legal opinion regarding RUS' interests in the impacted collateral and supporting evidence, in the form of Uniform Commercial Code Statements and filed Mortgages, that RUS maintains a first lien position on all assets of the Borrower, or such collateral as mandated by the Loan Documents; and
    - (iv) Such other documents that may be relevant in individual cases, as determined by RUS.
  - (3) When submitting a request for a servicing action, the distressed Borrower must consent to the following during the request and for the duration of the servicing action:
    - (i) **On-site visit.** A Management Analysis Profile (MAP) visit of the Borrower's entire operation;
    - (ii) **RUS priority payment.** Borrowers must agree that no other creditors will be paid without RUS consent, if RUS is not receiving full principal and interest payments;
    - (iii) **Additional reporting and monitoring.** Throughout the term of the servicing action(s), RUS will require increased frequency and/or additional details to the reporting and monitoring required under the terms of the Loan Documents; and
    - (iv) **Additional controls and limitations.** RUS may require additional controls and limitations such as segregation of accounts, RUS review of expenditures, etc.
- (c) False information provided by a Borrower, or by entities acting on behalf of the Borrower, will give rise to the immediate termination of any servicing action(s).

## Notes

### Authority

Authority: 7 U.S.C. 1981(b)(4), 7 U.S.C. 901 et seq. and 7 U.S.C. 950aaa et seq.

### Source

Source: 85 FR 10558, Feb. 25, 2020, unless otherwise noted.