RD 440-22 Promissory Note

USDA
Form RD 440-22
(Rev. 6-06)

Form Approved
OMB No. 0575-0015

PROMISSORY NOTE
(ASSOCIATION OR ORGANIZATION)

KIND OF LOAN:
ASSOCIATION- ORGANIZATION
HOUSING-ORGANIZATION
PUBLIC BODY
OTHER

State
County
Case No.
FINANCE OFFICE USE ONLY
F
LN
LC
IA

Date ________________________________
FOR VALUE RECEIVED, __________________________________________________________________________________
(herein called “Borrower”) promises to pay to the order of the United States of America, acting through the Rural Housing Service, Rural
Business-Cooperative Service, or Rural Utilities Service within the Rural Development Mission Area, the Farm Service Agency, or their
successor Agencies, United States Department of Agriculture, (herein called the “Government”) at its office in ____________________
____________________________________________________ , or at such other place as the Government may hereafter designate in
writing, the principal amount of ____________________________________________________________________________ dollars
($ __________________________ ), plus interest on the unpaid principal balance at the rate of _________________________ percent
( __________________ %) per annum. The said principal and interest shall be paid in the following installments on or before the
following dates:
$ ______________________ on __________________________ ,
$ ______________________ on __________________________ ,
$ ______________________ on __________________________ ,
$ ______________________ on __________________________ , and
$ _____________________ thereafter on the _______________________ of each ____________________
until the principal and interest are fully paid except that the final installment of the entire indebtedness evidenced hereby,
if not sooner paid, shall be due and payable _________________ ( __________________ ) years from the date of this note, and except
that prepayments may be made as provided below. The consideration herefor shall support any agreement modifying the
foregoing schedule of payments.
If the total amount of the loan is not advanced at the time of loan closing, the loan shall be advanced to Borrower as requested by
Borrower and approved by the Government and interest shall accrue on the amount of each advance from its actual date as shown on the
reverse hereof.
Every payment made on any indebtedness evidenced by this note shall be applied first to interest computed to the effective date of
the payment and then to principal.
Prepayments of scheduled installments, or any portion thereof, may be made at any time at the option of Borrower. Refunds and
extra payments, as defined in the regulations of the Government according to the source of funds involved, shall, after payment of
interest, be applied to the installments last to become due under this note and shall not affect the obligation of Borrower to pay the
remaining installments as scheduled herein.
If the Government at any time assigns this note and insures the payment thereof, Borrower shall continue to make payments to the
Government as collection agent for the holder. No assignment of this note shall be effective unless the Borrower is notified in writing of
the name and address of the assignee. The Borrower shall thereupon duly note in its records the occurrence of such assignment, together
with the name and address of the assignee.
While this note is held by an insured lender, prepayments as above authorized made by Borrower may, at the option of the Government,
be remitted by the Government to the holder promptly or, except for final payment, be retained by the Government and remitted to the
holder on either a calendar quarter basis or an annual installment due date basis. The effective date of every payment made by Borrower,
except payments retained and remitted by the Government on an annual installment due date basis, shall be the date of the United States
Treasury check by which the Government remits the payment to the holder. The effective date of any prepayment retained and remitted
by the Government to the holder on an annual installment due date basis shall be the date of the prepayment of Borrower, and the
Government will pay the interest to which the holder is entitled accruing between the effective date of any such prepayment and the date
of the Treasury check to the holder.
Position 2
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 0575-0015. The time required to complete this information collection is estimated to average 15 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.

Any amount advanced or expended by the Government for the collection hereof or to preserve or protect any security hereto, or
otherwise under the terms of any security or other instrument executed in connection with the loan evidenced hereby, at the option of the
Government shall become a part of and bear interest at the same rate as the principal of the debt evidenced hereby and be immediately due
and payable by Borrower to the Government without demand. Borrower agrees to use the loan evidenced hereby solely for purposes
authorized by the Government.
Borrower hereby certifies that it is unable to obtain sufficient credit elsewhere to finance its actual needs at reasonable rates and
terms, taking into consideration prevailing private and cooperative rates and terms in or near its community for loans for similar purposes
and periods of time.
If at any time it shall appear to the Government that Borrower may be able to obtain a loan from a responsible cooperative or private
credit source at reasonable rates and terms for loans for similar purposes and periods of time, Borrower will, at the Government’s request,
apply for and accept such loan in sufficient amount to repay the Government.
Default hereunder shall constitute default under any other instrument evidencing a debt or other obligation of Borrower to the
Government or securing such a debt or other obligation and default under any such other instrument shall constitute default hereunder.
Upon any such default, the Government at its option may declare all or any part of any such indebtedness immediately due and payable.
This note is given as evidence of a loan to Borrower made or insured by the Government pursuant to the Consolidated Farm and
Rural Development Act if the box opposite “Association” is checked under the heading “KIND OF LOAN,” or pursuant to Title V of the
Housing Act of 1949 if the box opposite “HOUSING-ORGANIZATION” is checked. This note shall be subject to the present regulations
of the Government and to its future regulations not inconsistent with the express provisions hereof.
Presentment, protest, and notice are hereby waived.
____________________________________________________________
(Name of Borrower)
(CORPORATE SEAL)

____________________________________________________________
(Signature of Executive Official)

ATTEST:

____________________________________________________________
(Title of Executive Official)

__________________________________________
(Signature of Attesting Official)

____________________________________________________________
(Post Office Box No. or Street Address)

__________________________________________
(Title of Attesting Official)

____________________________________________________________
(City, State, and Zip Code)

RECORD OF ADVANCES
AMOUNT

DATE

AMOUNT

(1) $

(6) $

(2) $

(7) $

(3) $

(8) $

(4) $

(9) $

(5) $

(10) $

DATE

TOTAL
PAY TO THE ORDER OF _______________________________________________________________________________________
_______________________________________________________________________________________
UNITED STATES OF AMERICA
___________________________________________
(Name of Agency)
BY ___________________________________________
___________________________________________