Form RD 3560-1 Application for Partial Release, Subordination or Consen

Form RD 3560-1
(02-05)

UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL DEVELOPMENT

TYPE OF LOAN

(SPECIFY)

FORM APPROVED
OMB NO. 0575-0189

Position 5
STATE
COUNTY

APPLICATION FOR PARTIAL RELEASE,
SUBORDINATION, OR CONSENT

CASE NO./PROJECT NO.
PROJECT NAME:

RELEASE
PARTIAL RELEASE
SUBORDINATION
CONSENT

PART I
(Completed by Borrower)

The undersigned
(Name of Borrower)

whose address (Including ZIP Code) is
in accordance with the terms of the security instruments held by the Rural Housing Service (hereafter referred to as “Agency”) on their
property, apply for release or subordination of the liens of said security instruments or consent to the following transaction.

(Description)

1. List prior lienholders in order of priority and attach the proposed security instrument.
Lien Priority #1:
Name: __________________________________
Address: ________________________________
_______________________________________
Amount of Lien: $ ________________________
Lien Priority #2:
Name: __________________________________
Address: ________________________________
_______________________________________
Amount of Lien: $ ________________________
Lien Priority #3:
Name: __________________________________
Address: ________________________________
_______________________________________
Amount of Lien: $ ________________________
Lien Priority #4:
Name: __________________________________
Address: ________________________________
_______________________________________
Amount of Lien: $ ________________________
Lien Priority #5:
Name: __________________________________
Address: ________________________________
_______________________________________
Amount of Lien: $ ________________________
According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not 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 0575-0189. The time required to complete this information collection is estimated to average 30 minutes 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.

2. Name of proposed lessee or purchaser: ____________________________________
Address: ____________________________________________________________
___________________________________________________________________
Attach a copy of the proposed lease/conveyance.

3. Description of property to be covered by the release, subordination, or consent:

4. The use to be made of the property covered by this application is:

5. The anticipated proceeds from this transaction are:

6.

Initial payment $
Subsequent payment(s) $

If this application is approved, the undersigned borrower agrees to comply with such terms as may be prescribed by Agency and to
disposition of the proceeds as required by Agency pursuant to its regulations, including the method of applying payments to the
borrower’s loan accounts. It is expressly understood that unless a separate written instrument of subordination or partial release is
executed and delivered by Agency pursuant to this application, approval by Agency of this application will merely constitute and
evidence its consent, as lienholder, to the proposed transaction without in any way subordinating its lien, releasing any of its
security, modifying the payment terms of the loan, or otherwise affecting any rights of Agency.

(Borrower Name)

Date:

By:
(Signature)

Title:

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PART II
(Completed by Agency)

1. The proposed transaction:
WILL
WILL NOT
prevent or make more difficult the successful operation of this property.
WILL
WILL NOT
reduce the efficiency of the property.
2. The proposed transaction will affect the value of this property as security for the loan as follows:
Present Market Value
(a) Value of Real Estate Before
(b) Value of Real Estate After
(c) Value of Real Estate Disposed of
3. The following

damages

benefits will result to this property from the transaction:

I hereby recommend that this application be approved and that the proceeds be applied or released as follows:
INITIAL PAYMENT TO:
$
$
$
$
$
$
$
$
$
$
$
$
$

SUBSEQUENT PAYMENTS TO:

extra payment on Agency loan
regular payment on Agency loan
borrower regular income
prior lienholder debts
pre-closing costs
post-closing costs
repairs or enlargement of complex
purchase additional property
increase reserves
pay investor capital losses
pay additional income tax
other (specify):
other (specify):

Date:

$
$
$
$
$
$
$
$
$
$
$
$
$

or
or
or
or
or
or
or
or
or
or
or
or
or

% extra payment on Agency loan
% regular payment on Agency loan
% borrower regular income
% prior lienholder debts
% pre-closing costs
% post-closing costs
% repairs or enlargement of complex
% purchase additional property
% increase reserves
% pay investor capital losses
% pay additional income tax
% other (specify):
% other (specify):

Recommended by:
(Signature of Servicing Official)

Title:

Date:

Approved

Disapproved by:
(Signature of Approval Official)

Title:
United States Department of Agriculture
Rural Housing Service

-3-