Eligibility. The Agency may approve transfers and assumptions of AMP loans when:
The present borrower is unable or unwilling to accomplish the objectives of the loan;
The transfer will not harm the Government or adversely affect the Agency's security position;
The transferee will continue with the original purpose of the loan;
The transferee will assume an amount at least equal to the present market value of the loan security;
The transferee documents the ability to pay the AMP loan debt as provided in the assumption agreement and has the legal capacity to enter into the contract;
If there is a lien or judgment against the Agency security being transferred, the transferee is subject to such claims. The transferee must document the ability to repay the claims against the land; and
If the transfer is to one or more members of the borrower's organization and there is no new member, there must not be a loss to the Government.
Withdrawal. Withdrawal of a member and transfer of the withdrawing member's interest in the Association to a new eligible member may be approved by the Agency if all of the following conditions are met:
The entire unpaid balance of the withdrawing member's share of the AMP loan must be assumed by the new member;
In accordance with the Association's governing articles, the required number of remaining members must agree to accept any new member; and
The transfer will not adversely affect collection of the AMP loan.
Requesting a transfer and assumption. The transferor/borrower and transferee/applicant must submit:
The written consent of any other lienholder, if applicable.
A current balance sheet and cash flow statement.
Terms. The interest rate and term of the assumed AMP loan will not be changed. Any delinquent principal and interest of the AMP loan must be paid current before the transfer and assumption will be approved by the Agency.
Release of liability. Transferors may be released from liability with respect to an AMP loan by the Agency when:
The full amount of the loan is assumed; or
Less than the full amount of the debt is assumed, and the balance remaining will be serviced in accordance with § 772.9(c).
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.