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

Rural Energy for America

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 the Lender's loan servicing policies and procedures. Where a Lender's loan servicing policies and procedures address a corresponding requirement in 7 CFR part 5001, the Lender must comply with whichever is more stringent, unless otherwise approved by the
Agency. 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 of principal and interest on the entire loan and shall promptly remit to each Holder its pro
rata share less the Lender 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 Agency 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.
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 the Agency of any rights it possesses against the Lender. The
Lender will be liable for and will promptly pay to the Agency any payment made by the Agency to the Holder which, if the Lender had
held the guaranteed portion of the loan, the Agency would not be required to make.

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Form RD 5001-6 Page 1 of 2

7. Repurchase by the Lender or the Agency. The repurchase by the Lender or the Agency will be in accordance with 7 CFR part
5001.
8. Lender’s Obligations. The Lender consents to the purchase by the Agency of the note or the Holder's interest and agrees to
furnish on request by the Agency 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 the Agency does not change, alter or modify any of the Lender’s obligations to the Agency arising from said loan or
guarantee nor does it waive any of the Agency’s right against the Lender, and that the Agency shall have the right to set-off against
the Lender all rights inuring to the Agency as the Holder of this instrument against the Agency’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 Agency 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