Form 369 Request for Approval to Sell Capital Assets

INSTRUCTIONS FOR PREPARATION OF RUS FORM 369

Request for Approval to Sell Capital Assets
RUS Form 369 must be completed and submitted when RUS approval of the sale of property is
required. Please refer to the provisions of your Restated Mortgage and Security Agreement,
Article III, Section 3.11, Limitations on Transfers of Property, to determine whether RUS approval
of the sale of property is required.
Submit an original and two copies of Form 369 to RUS with Items 1 through 14 completed, together
with information regarding the details of the sale, the computation of the selling price, one copy of a
certified board resolution authorizing the sale, the cut-off date established (in the case of sales by
assumption of debt) and any other material necessary for a full disclosure of the proposed transaction
and its effect upon the system.
SALES FOR CASH. After RUS approval is granted (Item 15), RUS will return the original
and two copies of Form 369 will be returned to the Seller. The Seller is then to complete
Item 16, and return the original and one copy to the appropriate RUS division at the
following address: Rural Utilities Service, 1400 Independence Ave., SW., Washington,
DC 20250. One copy of the form should be retained in the Seller’s file. If the proceeds are
being used to prepay a note, a wire transfer should be made under normal payment
procedures and the note should be specified.
SALES BY ASSUMPTION OF INDEBTEDNESS. After RUS approval and supplemental
lenders’ approvals are granted (as evidenced by both parties completion of Item 15, the
original and two copies of the Form 369 will be returned to the Seller with any supplemental
instructions necessary. Seller is to complete Item 16 and return the original and one copy to
RUS as per the instructions received from the regional office. One copy should be sent to
the supplemental lenders, if applicable, and one copy retained in the Seller’s file.
CONDEMNATIONS. Submit Form 369 promptly after learning that property will be
condemned, providing all known details. A board resolution need not be submitted for
condemnations. Instead a copy of the petition or complaint in the suit should be submitted
as an attachment to this form. Items 10, 11, and 12 may be completed by referring to the
petition or complaint. Item 14 need not be completed. Items on the form which cannot be
completed may be omitted at that time and submitted later. Approvals will not be
considered until negotiations have been completed. Final RUS processing and approval of
Form 369 requires complete information.

RUS Form 369

(Rev. 02-05)

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 0572-0020. The time required to complete this information collection is estimated to average 3 hours per response, including
the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

USDA-RUS

1. Date of this Request

2. Closing Date of Sale

3. Borrower Designation of Seller

4. Borrower Designation of
Purchaser (if RUS Borrowers)

REQUEST FOR APPROVAL TO SELL CAPITAL ASSETS
INSTRUCTIONS – See reverse side of this form and RUS Bul. 1717M-1
5. Name and Address of Seller

7. Approximate Original Cost

6. Name and Address of Purchaser

8. Condition of Property (check one)

New

Scrap

Used Usable

9. Type of Sale (check one)

Transfer …
Cash

10. Selling Price

Installment
Transfer

11. Describe in sufficient detail to identify adequately the property and estimate its present value. If real estate, include legal description. Attach forms for
partial release of lien, if necessary.

12. Reason for Sale (If additional space is needed, attach additional sheets.)

13. Disposition of Net Proceeds of Sales (Insert amount in appropriate space.)
A.

To Cash (Check One)

… General Fund Account ..........................................................................................................................
… Construction Fund – Trustee Account...................................................................................................
B.

$ ______________________

To Supplemental Lender (if applicable) as a Special Payment to be Applied to Notes(s)
No. _________________ Dated __________________________ ............................................................

D.

$ ______________________

To RUS as a Special Payment to be applied to Note(s) No. ________________
Dated _________________________.........................................................................................................

C.

$ ______________________

$ ______________________

Seller’s Notes to be Assumed [For sale of property by assumption of indebtedness only. Designated RUS and/or supplemental lender
(if applicable) and appropriate note of each.]
DESIGNATION

DATE OF NOTE

AMOUNT OF NOTE(S)

AMOUNT TO BE ASSUMED

E. Other (Include supplement lenders and amounts if applicable.)

RUS Form 369

(Rev. 02-05)

Page 1 of 2

14. Certifications: (Complete a or b, as applicable):
a. CERTIFICATION (financial interest)
Attached to this document is the identification of employees and board members that have financial interests associated with the proposed
asset sale. The identification includes the individual’s title and specific interest in the transaction. Also attached are the appropriate supporting
documents (e.g. an independent certified appraisal of the asset to establish fair market value, an independent feasibility study that assures that
the sale is in the best interest of the organization and RUS).
I hereby certify that the selling price is not less than the fair market value of the property, the sale is in the best interest of the
mortgagee(s) and this organization; the system after the sale will constitute a satisfactory operating unit and will not jeopardize the repayment of
the RUS or other loans, if any; and that all necessary approvals have been or will be obtained where required by law or by the articles of
incorporation by-laws of this organization.
____________________________________________________________________________________________________________________
SELLER’S CORPORATE NAME

___________________________________________________

_________________________________________________

SIGNATURE OF AUTHORIZED OFFICIAL

TITLE OF AUTHORIZED OFFICIAL

b. CERTIFICATION (no financial interest)
I hereby certify that no employee or board member of this organization has a personal financial interest in the sale of this
capital asset, the selling price is not less than the fair market value of the property, the sale is in the best interest of the
mortgagee(s) and this organization; the system after the sale will constitute a satisfactory operating unit and will not jeopardize
the repayment of the RUS or other loans, if any; and that all necessary approvals have been or will be obtained where required by
law or by the articles of incorporation by-laws of this organization.
____________________________________________________________________________________________________________________
SELLER’S CORPORATE NAME

___________________________________________________

_________________________________________________

SIGNATURE OF AUTHORIZED OFFICIAL

15.

TITLE OF AUTHORIZED OFFICIAL

APPROVAL is hereby given to complete the sale and release possession to the above-named purchaser of the property described above for
the sum of $ _________________________ , contingent upon disposition of the proceeds in the manner stipulated above.

____________________________________________________

____________________________________________

SIGNATURE OF AUTHORIZED OFFICIAL

DATE

____________________________________________________

____________________________________________

ADMINISTRATOR

16.

DATE

NOTICE OF FINAL ACTION – When delivery of the property has been made the borrower should notify RUS by completing the
certification below.

CERTIFICATION
I certify that possession of the property indicated above was released on ________________________________ and $
______________________________ has been accounted for as approved above.

____________________________________________________
SIGNATURE OF AUTHORIZED OFFICIAL

RUS Form 369

(Rev. 02-05)

__________________________________________________
TITLE OF AUTHORIZED OFFICIAL

Page 2 of 2