RD 5001-04 Conditional Commitment

Form RD 5001-4
(00-00)

UNITED STATES DEPARTMENT OFAGRICULTURE
RURAL DEVELOPMENT

FORM APPROVED
OMB NO. 0000-0000

CONDITIONAL COMMITMENT
Lender Name:

Case No.:

Lender’s Address:

Borrower:

Borrower's Tax ID:

Principal Amount of Loan:

Type of Loan:

Community Facilities

Water and Waste

Business and Industry

Renewable Energy/
Energy Efficiency

Interest Rate Information:
Variable
Fixed
Both
FIXED: Guaranteed Rate ___________
If Both: Projected Effective Rate ____________________
Unguaranteed Rate_________
VARIABLE:
Name of Published Index: ___________________________________________________________________
Guaranteed Portion:

Interest Rate _________
Rate Cap ______
Rate Change Period ___________

Rate Index _________ Payment Cap _________
Rate Incremental Difference +/- _______

Unguaranteed Portion:

Interest Rate _________
Rate Cap ______
Rate Change Period ___________

Rate Index _________ Payment Cap _________
Rate Incremental Difference +/- _______

The United States of America acting through the United States Department of Agriculture (USDA) hereby agrees that, in accordance
with applicable provisions of the regulations, it will execute Form RD 5001-7, “Loan Note Guarantee,” subject to the conditions and
requirements specified in the regulations and herein.
The Loan Note Guarantee fee payable by the Lender will be the amount specified in the applicable Federal Register notice as
determined by the date of this Conditional Commitment.
A Loan Note Guarantee will not be issued until the Lender certifies that there has been no adverse change in the Borrower’s financial
condition, nor any other adverse change in the Borrower’s condition, for any reason, during the period of time from USDA’s issuance
of this Conditional Commitment for Guarantee to issuance of the Loan Note Guarantee regardless of the cause or causes of the change
and whether the cause or causes of the change were within the Lender’s or Borrower’s control. The Lender’s certification must address
all adverse changes and be supported by financial statements of the Borrower and its guarantors executed not more than 60 days
before the time of certification. As used in this paragraph only, the term “Borrower” includes any parent, affiliate, or subsidiary of the
Borrower.
In the event of the Government’s failure to issue a guarantee in a situation where the Government is found to be in breach, the other
party’s remedy is limited to a suit for the guaranteed portion of principal and interest which ultimately remains unpaid.
This agreement becomes null and void unless the conditions are accepted by the Lender and Borrower within 60 days from the date of
issuance by USDA.
Except as set out below, the purposes for which the loan funds will be used and the amounts to be used for such purposes are set out
in the Application for Loan Guarantee. Once this instrument is executed and returned to USDA, no major change of conditions or
approved loan purpose will be considered.
Additional Conditions and Requirements as delinated in Attachement A of this form. 1/
If the conditions set forth in this commitment are not met by _______________ , USDA reserves the right to discontinue the processing of the application and terminate its commitment. If USDA decides to terminate this commitment, USDA will promptly inform the
Lender. 2/
UNITED STATES OF AMERICA
By: __________________________________________________
Date: ____________________________________y:

_________________________________________________
(Title)

According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control
number for this information collection is 0000-0000. The time required to complete this information is estimated to average 2 hours per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

Form RD 5001-4 Page 1 of 3

ACCEPTANCE OF CONDITIONS
To: USDA 3/

The Lender shall not represent this Conditional Commitment of Guarantee as a guarantee. The conditions of this Conditional Commitment for Guarantee including attachments are acceptable and the undersigned intends to proceed with the loan transaction.

_________________________________________________
(Name of Lender)
Date: _____________________________

By:_______________________________________________
(Signature for Lender)
__________________________________________________
(Name of Borrower)

Date: ______________________________

By:_______________________________________________
(Signature for Borrower)

1/

Insert any additional conditions or requirements in Attachment A; otherwise, insert “NONE”.

2/

USDA will determine and insert the date by which conditions should be met.

3/

Return completed and signed copy of this form to USDA issuing office.

Form RD 5001-4 Page 2 of 3

ATTACHMENT A
ADDITIONAL CONDITIONS AND REQUIREMENTS
(Attach any additional conditions and/or requirements required for this Conditional Committment)

Form RD 5001-4 Page 3 of 3