§5001.508. Mergers.
7 C.F.R. § 5001.508
Agency approval. All borrower mergers or consolidations (herein referred to as “mergers”) require approval by the Agency and the lender. The Agency may approve a merger when—
The resulting organization will be eligible for a guaranteed loan and assumes all the liabilities and acquires all the assets of the merged borrower;
The merger is in the best interest of the government and the merging organization;
The resulting organization can meet all required conditions as contained in specific loan agreements; and
All property can be legally transferred to the resulting organization.
Notes, amendments, and revision history
Authority
Authority: 5 U.S.C. 301; 7 U.S.C. 1926(a); 7 U.S.C. 1932(a); and 7 U.S.C. 8107.
Source
Source: 85 FR 42518, July 14, 2020, unless otherwise noted.