RD 5001-06 Assignment Guarantee Agreement

Position 5

Form RD 5001-6
(00-00)

FORM APPROVED
OMB NO. 0000-0000

UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL DEVELOPMENT

ASSIGNMENT GUARANTEE AGREEMENT
Type of Loan:

Community Facilities

Water and Waste

Business and Industry

Renewable Energy/
Energy Efficiency

Case Number _______________________________
______________________________________________________________________ (Lender) has made a loan to
____________________________________________________________________________ in the principal amount of
$ __________________________ as evidenced by a note dated _____________________________ . The United States of
America, acting through the U.S. Department of Agriculture (USDA) entered into a Loan Note Guarantee (RD Form 5001-7 ) with the
Lender applicable to such loan to guarantee the loan.
_______________________________________________________________________ (Holder) desires to purchase from the
Lender __________________________ % of the guaranteed portion of such loan. Copies of Borrower’s note and the Loan Note
Guarantee are attached hereto as a part hereof.
NOW, THEREFORE, THE PARTIES AGREE:
1. The principal amount of the loan now outstanding is $ __________________________. The Lender hereby assigns to the
Holder __________________________ % of the guaranteed portion of the loan representing $ __________________________ of
such loan now outstanding in accordance with all of the terms and conditions hereinafter set forth. The Lender and USDA certify to the
Holder that the Lender has paid and USDA has received the guarantee fee in exchange for the issuance of the Loan Note Guarantee.
2. Loan Servicing. The Lender will be responsible for servicing the loan in accordance with the Lender's Agreement, 7 CFR part 5001,
and their current written policies and procedures that exceed USDA's requirements. The Lender will remain mortgagee and secured
party of record. The loan will be secured by the same security with equal lien priority for the guaranteed and unguaranteed portions of the
loan.
The Lender will receive all payments on account of principal of and interest on the loan and shall promptly remit to the Holder its
pro rata share thereof determined according to their respective interests in the loan, less only the Lender’s servicing fee.
3. Servicing Fee. The Holder agrees that the Lender will retain a servicing fee of _____________________ percent per annum of
the unpaid balance of the guaranteed portion of the loan assigned hereunder.
4. Purchase by Holder. The Holder will hereby succeed to all payments of the Lender under the Loan Note Guarantee to the extent
of the portion purchased. The Lender, however, will remain bound by all obligations under the Loan Note Guarantee and the program
regulations found in 7 CFR part 5001, now in effect and future USDA program regulations not in conflict with the provisions hereof.
5. Full Faith and Credit. The Loan Note Guarantee constitutes an obligation supported by the full faith and credit of the United
States and is incontestable except for fraud or misrepresentation of which the Holder has actual knowledge at the time of this
assignment, or which it participates in or condones. The guarantee will be unenforceable to the extent that any loss is occasioned by
a provision for interest on interest.
6. Rights and Liabilities. The guarantee and right to require purchase will be directly enforceable by the Holder notwithstanding
any fraud or misrepresentation by the Lender or any unenforceability of this Loan Note Guarantee by the Lender except for fraud or
misrepresentation of which the Holder had actual knowledge at the time it became the Holder or in which the Holder participates or
condones. Nothing contained herein will constitute any waiver by USDA of any rights it possesses against the Lender. The Lender
will be liable for and will promptly pay to USDA any payment made by USDA to the Holder which, if the Lender had held the guaranteed portion of the loan, USDA would not be required to make.

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 5001-6 Page 1 of 2

7. Repurchase by the Lender or USDA. The repurchase by the Lender or USDA will be in accordance with 7 CFR part 5001.
8. Lender’s Obligations. The Lender consents to the purchase by USDA of the note or the Holder's interest and agrees to furnish
on request by USDA a current statement certified by an appropriate authorized officer of the Lender of the unpaid principal and interest
then owed by the Borrower on the loan and the amount then owed to any Holder. The Lender agrees that any purchase by USDA does
not change, alter or modify any of the Lender’s obligations to USDA arising from said loan or guarantee nor does it waive any of
USDA’s right against the Lender, and that USDA shall have the right to set-off against the Lender all rights inuring to USDA as the
Holder of this instrument against USDA’s obligation to the Lender under the Loan Note Guarantee.
9. Reassignment. The Holder may reassign the unpaid guaranteed portion of the loan sold hereunder. The assignee will succeed to
all rights and obligations of the Holder hereunder.
10. Notices. All notices and actions will be initiated through the USDA at address:

LENDER:

ADDRESS:
ATTEST:

By ____________________________________________

__________________________________________ (SEAL)

Title __________________________________________
Date __________________________________________

HOLDER:

ADDRESS:
ATTEST:

By ____________________________________________

__________________________________________ (SEAL)

Title __________________________________________
Date __________________________________________

UNITED STATES OF AMERICA
Department of Agriculture

ADDRESS: ______________________________________

By ____________________________________________

________________________________________________

Title __________________________________________
Date__________________________________________

Form RD 5001-6 Page 2 of 2