GroundRules
7 CFR 5001.508: Mergers.
Where this section sits in the code
- Title 7—Agriculture
- Subtitle B—Regulations of the Department of Agriculture
- CHAPTER L—RURAL BUSINESS-COOPERATIVE SERVICE, RURAL HOUSING SERVICE, AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
- PART 5001—GUARANTEED LOANS
- Subpart F—Servicing Provisions
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.
Collected 2026-08-27T02:24:01Z. Source file · JSON