Title 7

SECTION 1980.419

1980.419 Eligible lenders.

§ 1980.419 Eligible lenders.

[See Subpart A, § 1980.13.]

Administrative

A. Par (a) of subpart A, § 1980.13 requires National Office approval for any variations.

B. Par (b)(4) of subpart A, § 1980.13, State Director submits information to National Office with recommendations.

C. With prior written approval of the Rural Development National Office, a new eligible lender may be substituted for the original lender provided the new lender agrees to assume all original loan requirements including liabilities, servicing responsibilities and acquiring legal title to the unguaranteed portion of the loan. Such approval will be granted by the National Office only when a lender discontinues lending operations or other extreme situations require a substitution of lender. If approved by the National Office, the State Director will submit to the Finance Office Form RD 1980-42. “Notice of Substitution of Lender.”

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