Form FSA-2332 (OMB 0560 FSA-2332 (OMB 0560 Conditional Commitment Lender

This form is available electronically.

FSA-2232
(12-16-13)

Form Approved - OMB No. 0560-0155
Position 2

U.S. DEPARTMENT OF AGRICULTURE
Farm Service Agency

CONDITIONAL COMMITMENT
(See Page 4 for Privacy Act and Paperwork Reduction Act Statements.)

PART A – GENERAL INFORMATION
1. Lender's Name and Mailing Address

2. Type Loan
FO
OL
OL/LOC
3. Principal Amount of Loan or Line of Credit Ceiling

CL

$
4. Percent of Guarantee
%
5. Loan Applicant’s Name

6. FSA Account Number (ST and CO code/FSA ID Number)

From an examination of information supplied by the lender on the above proposed loan, and other relevant information, it appears that the transaction can be
properly completed.
Therefore, the United States of America acting through the Farm Service Agency (FSA) hereby agrees that, in accordance with 7 C.F.R. Part 762 and
related forms, it will execute FSA-2235, Loan Guarantee, subject to the conditions and requirements specified in said regulations and included below.
PART B - CONDITIONS
7. To obtain a FSA-2235, Loan Guarantee, the lender must submit the following to FSA:
A. This FSA-2232 with Part D completed and executed indicating acceptance of the conditions.
B. FSA-2233, Lender Certification.
C. FSA-2236, Guaranteed Loan Closing Report.
D. A copy of a properly executed debt instrument (promissory note or loan agreement).
E. A guarantee fee in the amount of $
In addition, the lender will be required to:
F. Execute an FSA-2221, Interest Assistance Agreement, if Interest Assistance is included in the loan.
G. Execute an FSA-2201, Lender's Agreement, if a current version has not already been executed.
H. Submit a copy of an evaluation or appraisal from standard eligible lenders if not previously submitted.
8. GENERAL REQUIREMENTS
Lender agrees that any provisions in its security instruments, including promissory notes, security agreements, financing statements, deeds of trust, or other
forms used by the lender to evidence or secure a guaranteed loan, which do not comply with 7 C.F.R. Part 762, are unenforceable by the lender without the
written concurrence of FSA. Such provisions and enforcement are waived by the lender.
The lender agrees that FSA has not nor will not certify to the validity, accuracy, legality, or enforceability of any note, security agreement, financing
statement, deed of trust or other forms which lender may have provided to FSA, the providing of such forms being for informational purposes only.
9. INTEREST ASSISTANCE REQUIREMENTS
If the subject guaranteed loan has been approved for participation in the interest assistance program, FSA will reimburse interest to the lender at a maximum
of 4 percent per annum of average outstanding principal, subject to limitations in FSA regulations. Interest assistance is available under
this commitment for a period not to exceed
years or the term of the loan, whichever is less, subject to limitations in FSA regulations.
Availability of interest assistance is subject to the loan being closed in accordance with the conditions of this commitment and with FSA regulations.
Interest assistance availability is subject to the execution of FSA-2221, Interest Assistance Agreement, and compliance with the conditions of the
agreement.

The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for employment on the bas is of race, color, national origin, age,
disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual’s
income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all
prohibited bases will apply to all programs and/or employment activities.) Persons with disabilities, who wish to file a program complaint, write to the address below or if you require
alternative means of communication for program information (e.g., Braille, large print, audiotape, etc.) please contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD).
Individuals who are deaf, hard of hearing, or have speech disabilities and wish to file either an EEO or program complaint, please contact USDA through the Federal Relay Service at
(800) 877-8339 or (800) 845- 6136 (in Spanish).
If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at
http://www.ascr.usda.gov/complaint_filing_cust.html, or at any USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing all of the
information requested in the form. Send your completed complaint form or letter by mail to U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence
Avenue, S.W., Washington, D.C. 20250-9410, by fax (202) 690-7442 or email at [email protected]. USDA is an equal opportunity provider and employer.

FSA-2232 (12-16-13)

Page 2 of 4

10. REQUIREMENTS FOR LOANS SECURED BY CHATTELS
As required in 7 C.F.R. Part 762.140, yearly accounting and reconciliation with the security agreement is required for all chattel loan collateral, i.e.,
livestock, farming and other equipment, crops, other farm products, supplies, inventory, accounts and contract rights, and general intangibles. An
assignment will be obtained on all USDA crop and livestock program payments and all crop insurance proceeds when required as security. All collateral
pertains to that now owned and hereafter acquired.
11. OPERATING LINE OF CREDIT REQUIREMENTS
A. The total principal balance owed at any one time on advances made within an approved line of credit may not exceed the line of credit
ceiling.
B. The total amount of line of credit advances and income releases cannot exceed the total estimated expenses, less interest expense, as
indicated on the borrower's plan, unless the plan is revised and continues to reflect a feasible plan.
C. Prior to any future year advances, standard eligible lenders must submit a copy of the borrower's income and expenses for the previous
year, the projected cash flow for the borrower's operation for the upcoming operating cycle, a current balance sheet, and a certification that the borrower
is in compliance with the provisions of the line of credit agreement and the income and loan proceeds for the previous year have been accounted for. All
of the above items are to be submitted for FSA written approval before future year's advances are made.
12. HIGHLY ERODIBLE LAND AND WETLAND CONSERVATION
A. This commitment is conditional upon loan proceeds not being used for a purpose that will contribute to excessive erosion of highly
erodible land or to the conversion of wetlands to produce an agricultural commodity.
B. All guaranteed lenders will be required to monitor compliance of these requirements as part of their servicing responsibilities. During
loan servicing contacts the borrower's compliance is to be reviewed and analyzed. If the borrower violates 7 C.F.R. Part 1940, Subpart G, Exhibit M
requirements, the loan will be in default.
C. If loan applicants' farm properties contain any highly erodible land, wetland, or converted wetland, the lender will include the following
provisions in its debt and security instruments:
''Default shall also exist if any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion
of wetland to produce or to make possible the production of an agricultural commodity, further explained in 7 CFR Part 1940. Subpart G, Exhibit M.''
13. CROP INSURANCE
The loan applicant will obtain at least catastrophic risk protection insurance coverage or sign a benefits waiver for each of their economically
significant crops, for which coverage is offered or reinsured by the Federal Crop Insurance Corporation.
14. LOAN PURPOSE
List loan purposes below. Purposes should be identical to those described in FSA-2211, Application for Guarantee or FSA-2212, Preferred Lender
Application for Guarantee, unless otherwise indicated. The total amount to be advanced on a line of credit will not exceed the projected credit needs
for the operating cycle.

15. INTEREST RATE AND TERMS
The interest rate on both the guaranteed portion and the nonguaranteed portion not exceed the maximums established in 7 C.F.R. Part 762.124(a). This
loan will have the following interest rate and terms: (If rate is variable, indicate basis only.)

FSA-2232 (12-16-13)

Page 3 of 4

16. SECURITY
This loan will be secured by the collateral listed on FSA-2211, Application for Guarantee, or FSA-2212, Preferred Lender Application for Guarantee unless
otherwise noted and described below. If an evaluation or appraisal was not completed at the time of the request for guarantee, this loan is approved subject
to the lender obtaining an evaluation or appraisal, prior to loan closing completed in accordance with 7 C.F.R. Part 762, to support the following estimated
values. Standard eligible lenders must submit an evaluation or appraisal, acceptable to FSA, prior to receiving FSA-2235, Loan Guarantee.
Required Security
A. Item Description

TOTALS:

B. Lien Position

D. Amount of
Prior Lien

C. Estimated Value

E. Collateral Value

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

OTHER
17. Other requirements: (Insert any additional conditions or on an attachment referred to in this space; otherwise insert ''NONE'').

PART C – AGENCY SIGNATURE

18. This conditional commitment becomes null and void unless the lender accepts the conditions, closes the loan, and requests the
guarantee within
days, unless this time is extended in writing by FSA, or upon the lender's earlier notification to
FSA that it does not desire to obtain an FSA guarantee. Any negotiations concerning these conditions must be completed by that time.

19A. Signature of FSA Representative

19B. Date

20A. Name (Printed)

20B. Title

FSA-2232 (12-16-13)

Page 4 of 4

PART D – ACCEPTANCE OR REJECTION OF CONDITIONS
21. To: Farm Service Agency (FSA)
The conditions of FSA-2232, Conditional Commitment, outlined on previous pages:

A.

are acceptable and the undersigned lender intends to proceed with the loan transaction and to request issuance of
the guarantee at the appropriate time.

B.

are acceptable, but for other reasons, the undersigned lender does not desire a guarantee and withdraws the application.

C.

are not acceptable, and for that reason the undersigned lender does not desire a guarantee and withdraws the application.

D.

are not acceptable but would be acceptable if the following changes were made:

22. Lender hereby certifies that it will comply with the requirements and regulations of 7 CFR Part 762, and FSA-2201, Lender's
Agreement.
If Item 21A above is checked
A. It is understood that the following information may now be released upon request: Name and address of applicant, name and address of
lender, amount of loan, and general purpose of loan.
B. It is anticipated that the loan will be closed in approximately

days.

23. NOTE TO LENDER: Complete and execute the Acceptance or Rejection of Conditions as indicated above on the copy of this form and
return completed form to the FSA Office address provided:

24A. Signature of Lender Representative

24B. Date

25A. Name (Printed)

25B. Title

NOTE:

The following is made in accordance with the Privacy Act of 1974 (5 USC 552a – as amended). The authority for requesting the information
identified on this form is the Consolidated Farm and Rural Development Act, as amended (7 U.S.C. 1921 et. seq.). The information will be used to
determine eligibility and feasibility for loans and loan guarantees, and servicing of loans and loan guarantees. The information collected on this
form may b e disclosed to other Federal, State, and local government agencies, Tribal agencies, and nongovernmental entities that have been
authorized access to the information by statute or regulation and/or as described in the applicable Routine Uses identified in the System of
Records Notice for USDA/FSA-14, Applicant/Borrower. Providing the requested information is voluntary. However, failure to furnish the
requested information may result in a denial for loans and loan guarantees, and servicing of loans and loan guarantees. The provisions of
criminal and civil fraud, privacy, and other statutes may be applicable to the information provided.
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
0560-0155. 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. RETURN THIS COMPLETED FORM TO YOUR COUNTY FSA OFFICE.