---
kind: "section"
citation: "7 C.F.R. § 5001.508"
title: "7"
number: "5001.508"
heading: "Mergers."
url: "https://uscodex.org/cfr/7/5001.508"
---

# §5001.508. Mergers.


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—

- (a) The resulting organization will be eligible for a guaranteed loan and assumes all the liabilities and acquires all the assets of the merged borrower;
- (b) The merger is in the best interest of the government and the merging organization;
- (c) The resulting organization can meet all required conditions as contained in specific loan agreements; and
- (d) **All property can be legally transferred to the resulting organization.**

## Notes

### 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.