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ELECTRONIC CODE OF FEDERAL REGULATIONS
e-CFR data is current as of January 22, 2016
Title 44 → Chapter I → Subchapter D → Part 206 → Subpart K
Title 44: Emergency Management and Assistance
PART 206—FEDERAL DISASTER ASSISTANCE
Subpart K—Community Disaster Loans
Contents
§206.360 Purpose.
§206.361 Loan program.
§206.362 Responsibilities.
§206.363 Eligibility criteria.
§206.364 Loan application.
§206.365 Loan administration.
§206.366 Loan cancellation.
§206.367 Loan repayment.
§§206.368-206.369 [Reserved]
§206.370 Purpose and scope.
§206.371 Loan program.
§206.372 Responsibilities.
§206.373 Eligibility criteria.
§206.374 Loan application.
§206.375 Loan administration.
§206.376 Loan cancellation.
§206.377 Loan repayment.
§§206.378-206.389 [Reserved]
SOURCE: 55 FR 2314, Jan. 23, 1990, unless otherwise noted.
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§206.360 Purpose.
This subpart provides policies and procedures for local governments and State and Federal officials concerning the
Community Disaster Loan program under section 417 of the Stafford Act. Sections 206.360 through 206.367 of the
subpart do not implement the Community Disaster Loan Act of 2005. (see §206.370).
[70 FR 60446, Oct. 18, 2005]
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§206.361 Loan program.
(a) General. The Assistant Administrator for the Disaster Assistance Directorate may make a Community Disaster
Loan to any local government which has suffered a substantial loss of tax and other revenues as a result of a major
disaster and which demonstrates a need for Federal financial assistance in order to perform its governmental functions.
(b) Amount of loan. The amount of the loan is based upon need, not to exceed 25 percent of the operating budget of
the local government for the fiscal year in which the disaster occurs, but shall not exceed $5 million. The term fiscal year
as used in this subpart means the local government's fiscal year.
(c) Interest rate. The interest rate is the rate for five year maturities as determined by the Secretary of the Treasury in
effect on the date that the Promissory Note is executed. This rate is from the monthly Treasury schedule of certified
interest rates which takes into consideration the current average yields on outstanding marketable obligations of the
United States, adjusted to the nearest 1⁄8 percent.
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(d) Time limitation. The Assistant Administrator for the Disaster Assistance Directorate may approve a loan in either
the fiscal year in which the disaster occurred or the fiscal year immediately following that year. Only one loan may be
approved under section 417(a) for any local government as the result of a single disaster.
(e) Term of loan. The term of the loan is 5 years, unless otherwise extended by the Assistant Administrator for the
Disaster Assistance Directorate. The Assistant Administrator for the Disaster Assistance Directorate may consider
requests for an extensions of loans based on the local government's financial condition. The total term of any loan under
section 417(a) normally may not exceed 10 years from the date the Promissory Note was executed. However, when
extenuating circumstances exist and the Community Disaster Loan recipient demonstrates an inability to repay the loan
within the initial 10 years, but agrees to repay such loan over an extended period of time, additional time may be provided
for loan repayment. (See §206.367(c).)
(f) Use of loan funds. The local government shall use the loaned funds to carry on existing local government functions
of a municipal operation character or to expand such functions to meet disaster-related needs. The funds shall not be
used to finance capital improvements nor the repair or restoration of damaged public facilities. Neither the loan nor any
cancelled portion of the loans may be used as the nonFederal share of any Federal program, including those under the
Act.
(g) Cancellation. The Assistant Administrator for the Disaster Assistance Directorate shall cancel repayment of all or
part of a Community Disaster Loan to the extent that he/she determines that revenues of the local government during the
3 fiscal years following the disaster are insufficient to meet the operating budget of that local government because of
disaster-related revenue losses and additional unreimbursed disaster-related municipal operating expenses.
(h) Relation to other assistance. Any community disaster loans including cancellations made under this subpart shall
not reduce or otherwise affect any commitments, grants, or other assistance under the Act or these regulations.
[55 FR 2314, Jan. 23, 1990, as amended at 66 FR 22445, May 4, 2001]
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§206.362 Responsibilities.
(a) The local government shall submit the financial information required by FEMA in the application for a Community
Disaster Loan and in the application for loan cancellation, if submitted, and comply with the assurances on the application,
the terms and conditions of the Promissory Note, and these regulations. The local government shall send all loan
application, loan administration, loan cancellation, and loan settlement correspondence through the GAR and the FEMA
Regional Office to the FEMA Assistant Administrator for the Disaster Assistance Directorate.
(b) The GAR shall certify on the loan application that the local government can legally assume the proposed
indebtedness and that any proceeds will be used and accounted for in compliance with the FEMA-State Agreement for the
major disaster. States are encouraged to take appropriate pre-disaster action to resolve any existing State impediments
which would preclude a local government from incurring the increased indebtedness associated with a loan in order to
avoid protracted delays in processing loan application requests in major disasters or emergencies.
(c) The Regional Administrator or designee shall review each loan application or loan cancellation request received
from a local government to ensure that it contains the required documents and transmit the application to the Assistant
Administrator for the Disaster Assistance Directorate. He/she may submit appropriate recommendations to the Assistant
Administrator for the Disaster Assistance Directorate.
(d) The Assistant Administrator for the Disaster Assistance Directorate, or a designee, shall execute a Promissory
Note with the local government, and the FEMA Finance Center, shall administer the loan until repayment or cancellation is
completed and the Promissory Note is discharged.
(e) The Assistant Administrator for the Disaster Assistance Directorate or designee shall approve or disapprove each
loan request, taking into consideration the information provided in the local government's request and the
recommendations of the GAR and the Regional Administrator. The Assistant Administrator for the Disaster Assistance
Directorate or designee shall approve or disapprove a request for loan cancellation in accordance with the criteria for
cancellation in these regulations.
(f) The Chief Financial Officer shall establish and maintain a financial account for each outstanding loan and disburse
funds against the Promissory Note.
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§206.363 Eligibility criteria.
(a) Local government. (1) The local government must be located within the area designated by the Assistant
Administrator for the Disaster Assistance Directorate as eligible for assistance under a major disaster declaration. In
addition, State law must not prohibit the local government from incurring the indebtedness resulting from a Federal loan.
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(2) Criteria considered by FEMA in determining the eligibility of a local government for a Community Disaster Loan
include the loss of tax and other revenues as result of a major disaster, a demonstrated need for financial assistance in
order to perform its governmental functions, the maintenance of an annual operating budget, and the responsibility to
provide essential municipal operating services to the community. Eligibility for other assistance under the Act does not, by
itself, establish entitlement to such a loan.
(b) Loan eligibility—(1) General. To be eligible, the local government must show that it may suffer or has suffered a
substantial loss of tax and other revenues as a result of a major disaster or emergency, must demonstrate a need for
financial assistance in order to perform its governmental functions, and must not be in arrears with respect to any
payments due on previous loans. Loan eligibility is based on the financial condition of the local government and a review
of financial information and supporting documentation accompanying the application.
(2) Substantial loss of tax and other revenues. The fiscal year of the disaster or the succeeding fiscal year is the base
period for determining whether a local government may suffer or has suffered a substantial loss of revenue. Criteria used
in determining whether a local government has or may suffer a substantial loss of tax and other revenue include the
following disaster-related factors:
(i) Whether the disaster caused a large enough reduction in cash receipts from normal revenue sources, excluding
borrowing, which affects significantly and adversely the level and/or categories of essential municipal services provided
prior to the disaster;
(ii) Whether the disaster caused a revenue loss of over 5 percent of total revenue estimated for the fiscal year in
which the disaster occurred or for the succeeding fiscal year;
(3) Demonstrated need for financial assistance. The local government must demonstrate a need for financial
assistance in order to perform its governmental functions. The criteria used in making this determination include the
following:
(i) Whether there are sufficient funds to meet current fiscal year operating requirements;
(ii) Whether there is availability of cash or other liquid assets from the prior fiscal year;
(iii) Current financial condition considering projected expenditures for governmental services and availability of other
financial resources;
(iv) Ability to obtain financial assistance or needed revenue from State and other Federal agencies for direct program
expenditures;
(v) Debt ratio (relationship of annual receipts to debt service);
(vi) Ability to obtain financial assistance or needed revenue from State and other Federal agencies for direct program
expenditures;
(vii) Displacement of revenue-producing business due to property destruction;
(viii) Necessity to reduce or eliminate essential municipal services; and
(ix) Danger of municipal insolvency.
[55 FR 2314, Jan. 23, 1990, as amended at 66 FR 22445, May 4, 2001]
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§206.364 Loan application.
(a) Application. (1) The local government shall submit an application for a Community Disaster Loan through the
GAR. The loan must be justified on the basis of need and shall be based on the actual and projected expenses, as a result
of the disaster, for the fiscal year in which the disaster occurred and for the 3 succeeding fiscal years. The loan application
shall be prepared by the affected local government and be approved by the GAR. FEMA has determined that a local
government, in applying for a loan as a result of having suffered a substantial loss of tax and other revenue as a result of a
major disaster, is not required to first seek credit elsewhere (see §206.367(c)).
(2) The State exercises administrative authority over the local government's application. The State's review should
include a determination that the applicant is legally qualified, under State law, to assume the proposed debt, and may
include an overall review for accuracy for the submission. The Governor's Authorized Representative may request the
Regional Administrator to waive the requirement for a State review if an otherwise eligible applicant is not subject to State
administration authority and the State cannot legally participate in the loan application process.
(b) Financial requirements. (1) The loan application shall be developed from financial information contained in the
local government's annual operating budget (see §206.364(b)(2)) and shall include a Summary of Revenue Loss and
Unreimbursed Disaster-Related Expenses, a Statement of the Applicant's Operating Results—Cash Position, a Debt
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History, Tax Assessment Data, Financial Projections, Other Information, a Certification, and the Assurances listed on the
application.
(i) Copies of the local government's financial reports (Revenue and Expense and Balance Sheet) for the 3 fiscal years
immediately prior to the fiscal year of the disaster and the applicant's most recent financial statement must accompany the
application. The local government's financial reports to be submitted are those annual (or interim) consolidated and/or
individual official annual financial presentations for the General Fund and all other funds maintained by the local
government.
(ii) Each application for a Community Disaster Loan must also include:
(A) A statement by the local government identifying each fund (i.e. General Fund, etc.) which is included as its annual
Operating budget, and
(B) A copy of the pertinent State statutes, ordinance, or regulations which prescribe the local government's system of
budgeting, accounting and financial reporting, including a description of each fund account.
(2) Operating budget. For loan application purposes, the operating budget is that document or documents approved
by an appropriating body, which contains an estimate of proposed expenditures, other than capital outlays for fixed assets
for a stated period of time, and the proposed means of financing the expenditures. For loan cancellation purposes, FEMA
interprets the term “operating budget” to mean actual revenues and expenditures of the local government as published in
the official financial statements of the local government.
(3) Operating budget increases. Budget increases due to increases in the level of, or additions to, municipal services
not rendered at the time of the disaster or not directly related to the disaster shall be identified.
(4) Revenue and assessment information. The applicant shall provide information concerning its method of tax
assessment including assessment dates and the dates payments are due. Tax revenues assessed but not collected, or
other revenues which the local government chooses to forgive, stay, or otherwise not exercise the right to collect, are not a
legitimate revenue loss for purposes of evaluating the loan application.
(5) Estimated disaster-related expense. Unreimbursed disaster-related expenses of a municipal operating character
should be estimated. These are discussed in §206.366(b).
(c) Federal review. (1) The Assistant Administrator for the Disaster Assistance Directorate or designee shall approve a
community disaster loan to the extent it is determined that the local government has suffered a substantial loss of tax and
other revenues and demonstrates a need for financial assistance to perform its governmental function as the result of the
disaster.
(2) Resubmission of application. If a loan application is disapproved, in whole or in part, by the Assistant Administrator
for the Disaster Assistance Directorate because of inadequacy of information, a revised application may be resubmitted by
the local government within sixty days of the date of the disapproval. Decision by the Assistant Administrator for the
Disaster Assistance Directorate on the resubmission is final.
(d) Community disaster loan. (1) The loan shall not exceed the lesser of:
(i) The amount of projected revenue loss plus the projected unreimbursed disaster-related expenses of a municipal
operating character for the fiscal year of the major disaster and the subsequent 3 fiscal years, or
(ii) 25 percent of the local government's annual operating budget for the fiscal year in which the disaster occurred.
(2) Promissory note. (i) Upon approval of the loan by the Assistant Administrator for the Disaster Assistance
Directorate or designee, he or she, or a designated Loan Officer will execute a Promissory Note with the applicant. The
Note must be co-signed by the State (see §206.364(d)(2)(ii)). The applicant should indicate its funding requirements on
the Schedule of Loan Increments on the Note.
(ii) If the State cannot legally cosign the Promissory Note, the local government must pledge collateral security,
acceptable to the Assistant Administrator for the Disaster Assistance Directorate, to cover the principal amount of the
Note. The pledge should be in the form of a resolution by the local governing body identifying the collateral security.
[55 FR 2314, Jan. 23, 1990, as amended at 74 FR 15351, Apr. 3, 2009]
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§206.365 Loan administration.
(a) Funding. (1) FEMA will disburse funds to the local government when requested, generally in accordance with the
Schedule of Loan Increments in the Promissory Note. As funds are disbursed, interest will accrue against each
disbursement.
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(2) When each incremental disbursement is requested, the local government shall submit a copy of its most recent
financial report (if not submitted previously) for consideration by FEMA in determining whether the level and frequency of
periodic payments continue to be justified. The local government shall also provide the latest available data on anticipated
and actual tax and other revenue collections. Desired adjustments in the disbursement schedule shall be submitted in
writing at least 10 days prior to the proposed disbursement date in order to ensure timely receipt of the funds. A sinking
fund should be established to amortize the debt.
(b) Financial management. (1) Each local government with an approved Community Disaster Loan shall establish
necessary accounting records, consistent with local government's financial management system, to account for loan funds
received and disbursed and to provide an audit trail.
(2) FEMA auditors, State auditors, the GAR, the Regional Administrator, the Assistant Administrator for the Disaster
Assistance Directorate, and the Comptroller General of the United States or their duly authorized representatives shall, for
the purpose of audits and examination, have access to any books, documents, papers, and records that pertain to Federal
funds, equipments, and supplies received under these regulations.
(c) Loan servicing. (1) The applicant annually shall submit to FEMA copies of its annual financial reports (operating
statements, balance sheets, etc.) for the fiscal year of the major disaster, and for each of the 3 subsequent fiscal years.
(2) The Disaster Assistance Directorate, will review the loan periodically. The purpose of the reevaluation is to
determine whether projected revenue losses, disaster-related expenses, operating budgets, and other factors have
changed sufficiently to warrant adjustment of the scheduled disbursement of the loan proceeds.
(3) The Disaster Assistance Directorate, shall provide each loan recipient with a loan status report on a quarterly
basis. The recipient will notify FEMA of any changes of the responsible municipal official who executed the Promissory
Note.
(d) Inactive loans. If no funds have been disbursed from the Treasury, and if the local government does not anticipate
a need for such funds, the note may be cancelled at any time upon a written request through the State and Regional
Office to FEMA. However, since only one loan may be approved, cancellation precludes submission of a second loan
application request by the same local government for the same disaster.
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§206.366 Loan cancellation.
(a) Policies. (1) FEMA shall cancel repayment of all or part of a Community Disaster Loan to the extent that the
Assistant Administrator for the Disaster Assistance Directorate determines that revenues of the local government during
the full three fiscal year period following the disaster are insufficient, as a result of the disaster, to meet the operating
budget for the local government, including additional unreimbursed disaster-related expenses for a municipal operating
character. For loan cancellation purposes, FEMA interprets that term operating budget to mean actual revenues and
expenditures of the local government as published in the official financial statements of the local government.
(2) If the tax and other revenues rates or the tax assessment valuation of property which was not damaged or
destroyed by the disaster are reduced during the 3 fiscal years subsequent to the major disaster, the tax and other
revenue rates and tax assessment valuation factors applicable to such property in effect at the time of the major disaster
shall be used without reduction for purposes of computing revenues received. This may result in decreasing the potential
for loan cancellations.
(3) If the local government's fiscal year is changed during the “full 3 year period following the disaster” the actual
period will be modified so that the required financial data submitted covers an inclusive 36-month period.
(4) If the local government transfers funds from its operating funds accounts to its capital funds account, utilizes
operating funds for other than routine maintenance purposes, or significantly increases expenditures which are not
disaster related, except increases due to inflation, the annual operating budget or operating statement expenditures will be
reduced accordingly for purposes of evaluating any request for loan cancellation.
(5) It is not the purpose of this loan program to underwrite predisaster budget or actual deficits of the local
government. Consequently, such deficits carried forward will reduce any amounts otherwise eligible for loan cancellation.
(b) Disaster-related expenses of a municipal operation character. (1) For purpose of this loan, unreimbursed
expenses of a municipal operating character are those incurred for general government purposes, such as police and fire
protection, trash collection, collection of revenues, maintenance of public facilities, flood and other hazard insurance, and
other expenses normally budgeted for the general fund, as defined by the Municipal Finance Officers Association.
(2) Disaster-related expenses do not include expenditures associated with debt service, any major repairs, rebuilding,
replacement or reconstruction of public facilities or other capital projects, intragovernmental services, special
assessments, and trust and agency fund operations. Disaster expenses which are eligible for reimbursement under project
applications or other Federal programs are not eligible for loan cancellation.
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(3) Each applicant shall maintain records including documentation necessary to identify expenditures for
unreimbursed disaster-related expenses. Examples of such expenses include but are not limited to:
(i) Interest paid on money borrowed to pay amounts FEMA does not advance toward completion of approved Project
Applications.
(ii) Unreimbursed costs to local governments for providing usable sites with utilities for mobile homes used to meet
disaster temporary housing requirements.
(iii) Unreimbursed costs required for police and fire protection and other community services for mobile home parks
established as the result of or for use following a disaster.
(iv) The cost to the applicant of flood insurance required under Public Law 93-234, as amended, and other hazard
insurance required under section 311, Public Law 93-288, as amended, as a condition of Federal disaster assistance for
the disaster under which the loan is authorized.
(4) The following expenses are not considered to be disaster-related for Community Disaster Loan purposes:
(i) The local government's share for assistance provided under the Act including flexible funding under section 406(c)
(1) of the Act.
(ii) Improvements related to the repair or restoration of disaster public facilities approved on Project Applications.
(iii) Otherwise eligible costs for which no Federal reimbursement is requested as a part of the applicant's disaster
response commitment, or cost sharing as specified in the FEMA-State Agreement for the disaster.
(iv) Expenses incurred by the local government which are reimbursed on the applicant's project application.
(c) Cancellation application. A local government which has drawn loan funds from the Treasury may request
cancellation of the principal and related interest by submitting an Application for Loan Cancellation through the Governor's
Authorized Representative to the Regional Administrator prior to the expiration date of the loan.
(1) Financial information submitted with the application shall include the following:
(i) Annual Operating Budgets for the fiscal year of the disaster and the 3 subsequent fiscal years;
(ii) Annual Financial Reports (Revenue and Expense and Balance Sheet) for each of the above fiscal years. Such
financial records must include copies of the local government's annual financial reports, including operating statements
balance sheets and related consolidated and individual presentations for each fund account. In addition, the local
government must include an explanatory statement when figures in the Application for Loan Cancellation form differ from
those in the supporting financial reports.
(iii) The following additional information concerning annual real estate property taxes pertaining to the community for
each of the above fiscal years:
(A) The market value of the tax base (dollars);
(B) The assessment ratio (percent);
(C) The assessed valuation (dollars);
(D) The tax levy rate (mils);
(E) Taxes levied and collected (dollars).
(iv) Audit reports for each of the above fiscal years certifying to the validity of the Operating Statements. The financial
statements of the local government shall be examined in accordance with generally accepted auditing standards by
independent certified public accountants. The report should not include recommendations concerning loan cancellation or
repayment.
(v) Other financial information specified in the Application for Loan Cancellation.
(2) Narrative justification. The application may include a narrative presentation to amplify the financial material
accompanying the application and to present any extenuating circumstances which the local government wants the
Assistant Administrator for the Disaster Assistance Directorate to consider in rendering a decision on the cancellation
request.
(d) Determination. (1) If, based on a review of the Application for Loan Cancellation and FEMA audit, when
determined necessary, the Assistant Administrator for the Disaster Assistance Directorate determines that all or part of the
Community Disaster Loan funds should be canceled, the principal amount which is canceled will become a grant, and the
related interest will be forgiven. The Assistant Administrator for the Disaster Assistance Directorate's determination
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concerning loan cancellation will specify that any uncancelled principal and related interest must be repaid immediately
and that, if immediate repayment will constitute a financial hardship, the local government must submit for FEMA review
and approval, a repayment schedule for settling the indebtedness on timely basis. Such repayments must be made to the
Treasurer of the United States and be sent to FEMA, Attention: Chief Financial Officer.
(2) A loan or cancellation of a loan does not reduce or affect other disaster-related grants or other disaster assistance.
However, no cancellation may be made that would result in a duplication of benefits to the applicant.
(3) The uncancelled portion of the loan must be repaid in accordance with §206.367.
(4) Appeals. If an Application for Loan Cancellation is disapproved, in whole or in part, by the Assistant Administrator
for the Disaster Assistance Directorate or designee, the local government may submit any additional information in support
of the application within 60 days of the date of disapproval. The decision by the Assistant Administrator for the Disaster
Assistance Directorate or designee on the submission is final.
[55 FR 2314, Jan. 23, 1990, as amended at 74 FR 15351, Apr. 3, 2009]
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§206.367 Loan repayment.
(a) Prepayments. The local government may make prepayments against loan at any time without any prepayment
penalty.
(b) Repayment. To the extent not otherwise cancelled, Community Disaster Loan funds become due and payable in
accordance with the terms and conditions of the Promissory Note. The note shall include the following provisions:
(1) The term of a loan made under this program is 5 years, unless extended by the Assistant Administrator for the
Disaster Assistance Directorate. Interest will accrue on outstanding cash from the actual date of its disbursement by the
Treasury.
(2) The interest amount due will be computed separately for each Treasury disbursement as follows: I = P × R × T,
where I = the amount of simple interest, P = the principal amount disbursed; R = the interest rate of the loan; and, T = the
outstanding term in years from the date of disbursement to date of repayment, with periods less than 1 year computed on
the basis of 365 days/year. If any portion of the loan is cancelled, the interest amount due will be computed on the
remaining principal with the shortest outstanding term.
(3) Each payment made against the loan will be applied first to the interest computed to the date of the payment, and
then to the principal. Prepayments of scheduled installments, or any portion thereof, may be made at any time and shall
be applied to the installments last to become due under the loan and shall not affect the obligation of the borrower to pay
the remaining installments.
(4) The Assistant Administrator for the Disaster Assistance Directorate may defer payments of principal and interest
until FEMA makes its final determination with respect to any Application for Loan Cancellation which the borrower may
submit. However, interest will continue to accrue.
(5) Any costs incurred by the Federal Government in collecting the note shall be added to the unpaid balance of the
loan, bear interest at the same rate as the loan, and be immediately due without demand.
(6) In the event of default on this note by the borrower, the FEMA claims collection officer will take action to recover
the outstanding principal plus related interest under Federal debt collection authorities, including administrative offset
against other Federal funds due the borrower and/or referral to the Department of Justice for judicial enforcement and
collection.
(c) Additional time. In unusual circumstances involving financial hardship, the local government may request an
additional period of time beyond the original 10 year term to repay the indebtedness. Such request may be approved by
the Assistant Administrator for the Disaster Assistance Directorate subject to the following conditions:
(1) The local government must submit documented evidence that it has applied for the same credit elsewhere and
that such credit is not available at a rate equivalent to the current Treasury rate.
(2) The principal amount shall be the original uncancelled principal plus related interest.
(3) The interest rate shall be the Treasury rate in effect at the time the new Promissory Note is executed but in no
case less than the original interest rate.
(4) The term of the new Promissory Note shall be for the settlement period requested by the local government but not
greater than 10 years from the date the new note is executed.
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§§206.368-206.369 [Reserved]
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§206.370 Purpose and scope.
(a) Purpose. Sections 206.370 through 206.377 provide procedures for local governments and State and Federal
officials concerning the Special Community Disaster Loans program under section 417 of the Stafford Act (42 U.S.C.
5184), the Community Disaster Loan Act of 2005, Public Law 109-88, and the Emergency Supplemental Appropriations
Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006, Public Law 109-234.
(b) Scope. Sections 206.370 through 206.377 apply only to Special Community Disaster Loans issued under the
Community Disaster Loan Act of 2005, Public Law 109-88, and the Emergency Supplemental Appropriations Act for
Defense, the Global War on Terror, and Hurricane Recovery, 2006, Public Law 109-234.
[70 FR 60446, Oct. 18, 2005, as amended at 75 FR 2817, Jan. 19, 2010]
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§206.371 Loan program.
(a) General. The Assistant Administrator for the Disaster Assistance Directorate may make a Special Community
Disaster Loan to any local government which has suffered a substantial loss of tax and other revenues as a result of a
major disaster and which demonstrates a need for Federal financial assistance in order to provide essential services.
(b) Amount of loan. The amount of the loan is based upon need, not to exceed 25 percent of the operating budget of
the local government for the fiscal year in which the disaster occurs. The term fiscal year as used in this subpart means
the local government's fiscal year.
(c) Interest rate. The interest rate is the rate for five year maturities as determined by the Secretary of the Treasury in
effect on the date that the Promissory Note is executed. This rate is from the monthly Treasury schedule of certified
interest rates which takes into consideration the current average yields on outstanding marketable obligations of the
United States. If an applicant can demonstrate unusual circumstances involving financial hardship, the Assistant
Administrator for the Disaster Assistance Directorate may approve a rate equal to the five year maturity rate plus 1 per
centum, adjusted to the nearest 1⁄8 percent, and further reduced by one-half.
(d) Time limitation. The Assistant Administrator for the Disaster Assistance Directorate may approve a loan in either
the fiscal year in which the disaster occurred or the fiscal year immediately following that year.
(e) Term of loan. The term of the loan is 5 years, unless otherwise extended by the Assistant Administrator for the
Disaster Assistance Directorate. The Assistant Administrator for the Disaster Assistance Directorate may consider a
request for an extension of a loan based on the local government's financial condition. The total term of any loan under
section 417(a) of the Stafford Act normally may not exceed 10 years from the date the Promissory Note was executed.
However, when extenuating circumstances exist and the recipient demonstrates an inability to repay the loan within the
initial 10 years, but agrees to repay such loan over an extended period of time, additional time may be provided for loan
repayment (see §206.377(c)).
(f) Use of loan funds. The local government shall use the loaned funds to assist in providing essential services. The
funds shall not be used to finance capital improvements nor the repair or restoration of damaged public facilities. Neither
the loan nor any cancelled portion of the loans may be used as the non-Federal share of any Federal program, including
those under the Stafford Act.
(g) Relation to other assistance. Any Special Community Disaster Loans including cancellations of loans made under
this subpart shall not reduce or otherwise affect any commitments, grants, or other assistance provided under the authority
of the Stafford Act or this part.
(h) Cancellation. The Director of the Public Assistance Division shall cancel repayment of all or part of a Special
Community Disaster Loan to the extent that he/she determines that revenues of the local government during the three full
fiscal years following the disaster are insufficient to meet the operating budget of that local government because of
disaster-related revenue losses and additional unreimbursed disaster-related municipal operating expenses.
[70 FR 60446, Oct. 18, 2005, as amended at 75 FR 2817, Jan. 19, 2010]
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§206.372 Responsibilities.
(a) The local government shall submit the financial information required by FEMA in the application for a Community
Disaster Loan or other format specified by FEMA and comply with the assurances on the application, the terms and
conditions of the Promissory Note, the application for loan cancellation, if submitted, and §§206.370 through 206.377. The
local government shall send all loan application, loan administration, loan cancellation, and loan settlement
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correspondence through the Governor's Authorized Representative (GAR) and the FEMA Regional Office to the Director
of the Public Assistance Division.
(b) The GAR shall certify on the loan application that the local government can legally assume the proposed
indebtedness and that any proceeds will be used and accounted for in compliance with the FEMA-State Agreement for the
major disaster. States are encouraged to take appropriate pre-disaster action to resolve any existing State impediments
which would preclude a local government from incurring the increased indebtedness associated with a loan in order to
avoid protracted delays in processing loan application requests resulting from major disasters.
(c) The Regional Administrator or designee shall review each loan application or loan cancellation request received
from a local government to ensure that it contains the required documents and transmit the application to the Director of
the Public Assistance Division. He/she may also submit appropriate recommendations to the Director of the Public
Assistance Division.
(d) The Director of the Public Assistance Division or a designee, shall execute a Promissory Note with the local
government and shall administer the loan until repayment or cancellation is completed and the Promissory Note is
discharged.
(e) The Director of the Public Assistance Division shall approve or disapprove each loan request, taking into
consideration the information provided in the local government's request and the recommendations of the GAR and the
Regional Administrator. The Director of the Public Assistance Division shall approve or disapprove a request for loan
cancellation in accordance with the criteria for cancellation in these regulations.
(f) The FEMA Chief Financial Officer shall establish and maintain a financial account for each outstanding loan and
disburse funds against the Promissory Note.
[70 FR 60446, Oct. 18, 2005, as amended at 75 FR 2818, Jan. 19, 2010]
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§206.373 Eligibility criteria.
(a) Local government. (1) The local government must be located within the area eligible for assistance under a major
disaster declaration. In addition, State law must not prohibit the local government from incurring the indebtedness resulting
from a Federal loan.
(2) Criteria considered by FEMA in determining the eligibility of a local government for a Special Community Disaster
Loan include the loss of tax and other revenues as result of a major disaster, a demonstrated need for financial assistance
in order to perform essential governmental functions, the maintenance of an annual operating budget, and the
responsibility to provide essential services to the community. Eligibility for other assistance under the Stafford Act does
not, by itself, establish entitlement to such a loan.
(b) Loan eligibility—(1) General. To be eligible, the local government must show that it may suffer or has suffered a
substantial loss of tax and other revenues as a result of a major disaster or emergency, and it must demonstrate a need
for financial assistance in order to provide essential municipal services. Loan eligibility is based on the financial condition
of the local government and a review of financial information and supporting documentation accompanying the application.
(2) Substantial loss of tax and other revenues. The fiscal year of the disaster or the succeeding fiscal year is the base
period for determining whether a local government may suffer or has suffered a substantial loss of revenue. Criteria used
in determining whether a local government has or may suffer a substantial loss of tax and other revenue include the
following disaster-related factors:
(i) Whether the disaster caused a large enough reduction in cash receipts from normal revenue sources, excluding
borrowing, which affects significantly and adversely the level and/or categories of essential services provided prior to the
disaster;
(ii) Whether the disaster caused a revenue loss of over 5 percent of total revenue estimated for the fiscal year in
which the disaster occurred or for the succeeding fiscal year.
(3) Demonstrated need for financial assistance. The local government must demonstrate a need for financial
assistance in order to perform essential governmental functions. The criteria used in making this determination may
include some or all of the following factors:
(i) Whether there are sufficient funds to meet current fiscal year operating requirements;
(ii) Whether there is availability of cash or other liquid assets from the prior fiscal year;
(iii) Current financial condition considering projected expenditures for governmental services and availability of other
financial resources;
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(iv) Ability to obtain financial assistance or needed revenue from State and other Federal agencies for direct program
expenditures;
(v) Debt ratio (relationship of annual receipts to debt service);
(vi) Displacement of revenue-producing business due to property destruction;
(vii) Necessity to reduce or eliminate essential services; and
(viii) Danger of municipal insolvency.
[70 FR 60446, Oct. 18, 2005]
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§206.374 Loan application.
(a) Application. (1) The local government shall submit an application for a Special Community Disaster Loan through
the GAR. The loan must be justified on the basis of need and shall be based on the actual and projected expenses, as a
result of the disaster, for the fiscal year in which the disaster occurred and for the 3 succeeding fiscal years. The loan
application shall be prepared by the affected local government and be approved by the GAR. FEMA has determined that a
local government, in applying for a loan as a result of having suffered a substantial loss of tax and other revenue as a
result of a major disaster, is not required to first seek credit elsewhere (see §206.377(c)).
(2) The State exercises administrative authority over the local government's application. The State's review should
include a determination that the applicant is legally qualified, under State law, to assume the proposed debt, and may
include an overall review for accuracy of the submission. The GAR may request the Regional Administrator to waive the
requirement for a State review if an otherwise eligible applicant is not subject to State administration authority and the
State cannot legally participate in the loan application process.
(b) Financial requirements. (1) The loan application shall be developed from financial information contained in the
local government's annual operating budget (see paragraph (b)(2) of this section) and shall include a Summary of
Revenue Loss and Unreimbursed Disaster-Related Expenses, a Statement of the Applicant's Operating Results—Cash
Position, and certification and assurances requested by the Assistant Administrator for the Disaster Assistance
Directorate.
(i) Copies of the local government's financial reports (Revenue and Expense and Balance Sheet) for the 3 fiscal years
immediately prior to the fiscal year of the disaster and the applicant's most recent financial statement must, unless
impracticable, accompany the application. The local government's financial reports to be submitted are those annual (or
interim) consolidated and/or individual official annual financial presentations for the General Fund and all other funds
maintained by the local government.
(ii) Each application for a Special Community Disaster Loan must also include:
(A) A statement by the local government identifying each fund (i.e. General Fund, etc.) which is included as its annual
Operating budget, and
(B) A copy of the pertinent State statutes, ordinances, or regulations which prescribe the local government's system of
budgeting, accounting and financial reporting, including a description of each fund account.
(2) Operating budget. For loan application purposes, the operating budget is that document or documents approved
by an appropriating body, which contains an estimate of proposed expenditures, other than capital outlays for fixed assets
for a stated period of time, and the proposed means of financing the expenditures. For loan cancellation purposes, FEMA
interprets the term “operating budget” to mean actual revenues and expenditures of the local government as published in
the official financial statements of the local government.
(3) Operating budget increases. Budget increases due to increases in the level of, or additions to, municipal services
not rendered at the time of the disaster or not directly related to the disaster shall be identified.
(4) Revenue and assessment information. The applicant shall provide information concerning its method of tax
assessment including assessment dates and the dates payments are due.
(5) Estimated disaster-related expense. Unreimbursed disaster-related expenses of a municipal operating character
should be estimated.
(c) Federal review. (1) The Assistant Administrator for the Disaster Assistance Directorate or designee shall approve a
Special Community Disaster Loan to the extent it is determined that the local government has suffered a substantial loss
of tax and other revenues and demonstrates a need for financial assistance as the result of the disaster to provide
essential municipal services.
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(2) Resubmission of application. If a loan application is disapproved, in whole or in part, by the Assistant Administrator
for the Disaster Assistance Directorate because of inadequacy of information, a revised application may be submitted by
the local government within sixty days of the date of the disapproval. Decision by the Assistant Administrator for the
Disaster Assistance Directorate on the resubmission is final.
(d) Special Community Disaster Loan. (1) The loan shall not exceed the lesser of:
(i) The amount of projected revenue loss plus the projected unreimbursed disaster-related expenses of a municipal
operating character for the fiscal year of the major disaster and the subsequent 3 fiscal years, or
(ii) 25 percent of the local government's annual operating budget for the fiscal year in which the disaster occurred.
(2) Promissory note. (i) Upon approval of the loan by the Assistant Administrator for the Disaster Assistance
Directorate or designee, he or she, or a designated Loan Officer will execute a Promissory Note with the applicant. The
Note must be co-signed by the State (see paragraph (d)(2)(ii) of this section). The applicant should indicate its funding
requirements on the Schedule of Loan Increments on the Note.
(ii) If the State cannot legally cosign the Promissory Note, the local government must pledge collateral security,
acceptable to the Assistant Administrator for the Disaster Assistance Directorate, to cover the principal amount of the
Note. The pledge should be in the form of a resolution by the local governing body identifying the collateral security.
(e) Waiver of requirements. Notwithstanding any other provision of this or other sections promulgated pursuant to
Public Law 109-88, the Assistant Administrator for the Disaster Assistance Directorate may, upon the request of an
applicant or loan recipient, waive any specific application requirement or financial reporting requirement (see, e.g.,
§206.375(a)(2)) upon a finding by the Assistant Administrator for the Disaster Assistance Directorate that the effects of the
major disaster prevent the applicant from fulfilling the application requirement and that waiving the requirements would be
consistent with the purposes of the Community Disaster Loan Act of 2005.
[70 FR 60446, Oct. 18, 2005, as amended at 75 FR 2818, Jan. 19, 2010]
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§206.375 Loan administration.
(a) Funding. (1) FEMA will disburse funds to the local government when requested, generally in accordance with the
Schedule of Loan Increments in the Promissory Note. As funds are disbursed, interest will accrue against each
disbursement.
(2) When each incremental disbursement is requested, the local government shall submit a copy of its most recent
financial report (if not submitted previously) for consideration by FEMA in determining whether the level and frequency of
periodic payments continue to be justified. The local government shall also provide the latest available data on anticipated
and actual tax and other revenue collections. Desired adjustments in the disbursement schedule shall be submitted in
writing at least 10 days prior to the proposed disbursement date in order to ensure timely receipt of the funds.
(b) Financial management. (1) Each local government with an approved Special Community Disaster Loan shall
establish necessary accounting records, consistent with local government's financial management system, to account for
loan funds received and disbursed and to provide an audit trail.
(2) FEMA auditors, State auditors, the GAR, the Regional Administrator, the Assistant Administrator for the Disaster
Assistance Directorate, the Department of Homeland Security Inspector General, and the Comptroller General of the
United States or their duly authorized representatives shall, for the purpose of audits and examination, have access to any
books, documents, papers, and records that pertain to Federal funds, equipments, and supplies received under §§206.370
through 206.377.
(c) Loan servicing. (1) The applicant annually shall submit to FEMA copies of its annual financial reports (operating
statements, balance sheets, etc.) for the fiscal year of the major disaster, and for each of the 3 subsequent fiscal years.
(2) FEMA will review the loan periodically. The purpose of the reevaluation is to determine whether projected revenue
losses, disaster-related expenses, operating budgets, and other factors have changed sufficiently to warrant adjustment of
the scheduled disbursement of the loan proceeds.
(3) FEMA shall provide each loan recipient with a loan status report on a quarterly basis. The recipient will notify
FEMA of any changes of the responsible municipal official who executed the Promissory Note.
(d) Inactive loans. If no funds have been disbursed from the loan program, and if the local government does not
anticipate a need for such funds, the note may be cancelled at any time upon a written request through the State and
Regional Office to FEMA.
[70 FR 60446, Oct. 18, 2005]
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§206.376 Loan cancellation.
(a) FEMA shall cancel repayment of all or part of a Special Community Disaster Loan to the extent that the Director of
the Public Assistance Division determines that revenues of the local government during the three-full-fiscal-year period
following the disaster are insufficient, as a result of the disaster, to meet the operating budget for the local government,
including additional unreimbursed disaster-related expenses of a municipal operating character.
(b) Definitions. For loan cancellation purposes,
(1) “Operating budget” means actual revenues and expenditures of the local government as published in the official
financial statements of the local government.
(2) “Revenue” means any source of income from taxes, fees, fines, and other sources of income, and will be
recognized only as they become susceptible to accrual (measurable and available).
(3) “Three-full-fiscal-year period following the disaster” means either a 36-month period beginning on September 1,
2005, or the 36 months of the applicant's fiscal year as established before the disaster, at the applicant's discretion.
(4) “Operating expenses” means those expenses and expenditures incurred as a result of performing services,
including salaries and benefits, contractual services, and commodities. Capital expenditures and debt service payments
and capital leases are not considered operating expenses. Under accrual accounting, expenses are recognized as soon
as a liability is incurred, regardless of the timing of related cash flows.
(c) Revenue Calculation procedures. (1) If the tax rates and other revenues or the tax assessment valuation of
property which was not damaged or destroyed by the disaster are reduced during the three full fiscal years subsequent to
the major disaster, the tax rates and other revenues and tax assessment valuation factors applicable to such property in
effect at the time of the major disaster shall be used without reduction for purposes of computing revenues received.
(2) At the applicant's discretion, the three-full-fiscal-year period following the disaster is either a 36-month period
beginning on September 1, 2005 or the 36 months of the applicant's fiscal year as established before the disaster. If the
applicant's fiscal year is changed within the 36 months immediately following the disaster, the actual period will be
modified so that the required financial data submitted covers an inclusive 36-month period. Should the applicant elect the
36-month period beginning September 1, 2005, FEMA will prorate the revenues and expenses for the partial years based
on the applicant's annual financial statements.
(3) If the local government transfers funds from its operating funds accounts to its capital funds account, utilizes
operating funds for other than routine maintenance purposes, or significantly increases expenditures which are not
disaster related, except increases due to inflation, the annual operating budget or operating statement expenditures will be
reduced accordingly for purposes of evaluating any request for loan cancellation.
(4) Notwithstanding paragraph (c)(3) of this section, the amount of property taxes that are transferred to other funds
for Debt Service or Pension Obligations funding will not be excluded from the calculation of the operating budget or from
expenditures in calculation of the operating deficit, to the extent that the property tax revenues in the General Fund are
less than they were pre-disaster. FEMA will consider the impact of the loss of property tax revenue in Debt Service or
Pension Funds (non-operating funds) if all of the following conditions are met:
(i) The entity experienced a loss of property tax revenue as a result of the disaster and the assessed value during the
three years following the disaster, in the aggregate, is less than the pre-disaster assessed value;
(ii) the entity has a property tax cap limitation on the ability to raise property taxes post-disaster; and
(iii) the property taxes are levied through the General Operating Fund and transfers for obligations mandated by law
are made to fund Debt Service or Pension Obligations which result in the entity experiencing a reduction of property tax
revenues in the General Fund.
(5) It is not the purpose of this loan program to underwrite pre-disaster budget or actual deficits of the local
government. Consequently, such deficits carried forward will reduce any amounts otherwise eligible for loan cancellation.
(6) The provisions of this section apply to all Special Community Disaster loans issued from the dates of enactment of
Public Law 109-88 and Public Law 109-234.
(d) Disaster-related expenses of a municipal operation character. (1) For purposes of this loan, unreimbursed
expenses of a municipal operating character are those incurred for general government purposes, including but not limited
to police and fire protection, trash collection, collection of revenues, maintenance of public facilities, flood and other hazard
insurance.
(2) Disaster-related expenses do not include expenditures associated with debt service, any major repairs, rebuilding,
replacement or reconstruction of public facilities or other capital projects, intragovernmental services, special
assessments, and trust and agency fund operations. Disaster expenses which are eligible for reimbursement under project
applications or other Federal programs are not eligible for loan cancellation.
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(3) Each applicant shall maintain records including documentation necessary to identify expenditures for
unreimbursed disaster-related expenses. Examples of such expenses include but are not limited to:
(i) Interest paid on money borrowed to pay amounts FEMA does not advance toward completion of approved Project
Applications.
(ii) Unreimbursed costs to local governments for providing usable sites with utilities for mobile homes used to meet
disaster temporary housing requirements.
(iii) Unreimbursed costs required for police and fire protection and other community services for mobile home parks
established as the result of or for use following a disaster.
(iv) The cost to the applicant of flood insurance required under Public Law 93-234, as amended, and other hazard
insurance required under section 311, Public Law 93-288, as amended, as a condition of Federal disaster assistance for
the disaster under which the loan is authorized.
(4) The following expenses are not considered to be disaster-related for Special Community Disaster Loan purposes:
(i) The local government's share for assistance provided under the Stafford Act including flexible funding under
section 406(c)(1) of the Act (42 U.S.C. 5172).
(ii) Improvements related to the repair or restoration of disaster public facilities approved on Project Applications.
(iii) Otherwise eligible costs for which no Federal reimbursement is requested as a part of the applicant's disaster
response commitment, or cost sharing as specified in the FEMA-State Agreement for the disaster.
(iv) Expenses incurred by the local government which are reimbursed on the applicant's Project Application.
(e) Cancellation application. A local government which has drawn loan funds from the U.S. Treasury may request
cancellation of the principal and related interest by submitting an Application for Loan Cancellation through the Governor's
Authorized Representative to the Regional Administrator prior to the expiration date of the loan.
(1) Financial information submitted with the application shall include the following:
(i) Annual Operating Budgets for the fiscal year of the disaster and the three subsequent fiscal years;
(ii) Annual Financial Reports (Revenue and Expense and Balance Sheet) for each of the above fiscal years. Such
financial records must include copies of the local government's annual financial reports, including operating statements
and balance sheets and related consolidated and individual presentations for each fund account. In addition, the local
government must include an explanatory statement when figures in the Application for Loan Cancellation form differ from
those in the supporting financial reports.
(iii) The following additional information concerning annual real estate property taxes pertaining to the community for
each of the above fiscal years:
(A) The market value of the tax base (dollars);
(B) The assessment ratio (percent);
(C) The assessed valuation (dollars);
(D) The tax levy rate (mils);
(E) Taxes levied and collected (dollars).
(iv) Audit reports for each of the above fiscal years certifying to the validity of the Operating Statements. The financial
statements of the local government shall be examined in accordance with generally accepted auditing standards by
independent certified public accountants. The report should not include recommendations concerning loan cancellation or
repayment.
(v) Other financial information specified in the Application for Loan Cancellation.
(2) Narrative justification. The application may include a narrative presentation to supplement the financial material
accompanying the application and to present any extenuating circumstances which the local government wants the
Director of the Public Assistance Division to consider in rendering a decision on the cancellation request.
(f) Determination. (1) The Director of the Public Assistance Division will make a cancellation determination within 60
days of the date the applicant submits all required and requested information, including documentation in support of unreimbursed disaster related expenses.
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(2) If, based on a review of the Application for Loan Cancellation and FEMA audit, the Director of the Public
Assistance Division determines that all or part of the Special Community Disaster Loan funds should be canceled, the
amount of principal canceled and the related interest will be forgiven. The Director of the Public Assistance Division's
determination concerning loan cancellation will specify that any uncancelled principal and related interest must be repaid
in accordance with the terms and conditions of the Promissory Note, and that, if repayment will constitute a financial
hardship, the local government must submit for FEMA review and approval, a repayment schedule for settling the
indebtedness on a timely basis. Such repayments must be made to the Treasurer of the United States and be sent to
FEMA, Attention: Office of the Chief Financial Officer.
(3) A loan or cancellation of a loan does not reduce or affect other disaster-related grants or other disaster assistance.
However, no cancellation may be made that would result in a duplication of benefits to the applicant.
(4) The uncancelled portion of the loan must be repaid in accordance with §206.377.
(5) Appeals. If an Application for Loan Cancellation is disapproved, in whole or in part, by the Director of the Public
Assistance Division, the local government may submit any additional information in support of the application within 60
days of the date of disapproval. The decision by the Assistant Administrator for the Disaster Assistance Directorate on the
additional information is final.
[75 FR 2818, Jan. 19, 2010]
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§206.377 Loan repayment.
(a) Prepayments. The local government may make prepayments against loan at any time without any prepayment
penalty.
(b) Repayment. To the extent not otherwise cancelled, loan funds become due and payable in accordance with the
terms and conditions of the Promissory Note. The note shall include the following provisions:
(1) The term of a loan made under this program is 5 years, unless extended by the Assistant Administrator for the
Disaster Assistance Directorate. Interest will accrue on outstanding cash from the actual date of its disbursement by
FEMA or FEMA's designated Disbursing Agency.
(2) The interest amount due will be computed separately for each Treasury disbursement as follows: I = P X R X T,
where I = the amount of simple interest, P = the principal amount disbursed; R = the interest rate of the loan; and, T = the
outstanding term in years from the date of disbursement to date of repayment, with periods less than 1 year computed on
the basis of 365 days/year. If any portion of the loan is cancelled, the interest amount due will be computed on the
remaining principal with the shortest outstanding term.
(3) Each payment made against the loan will be applied first to the interest computed to the date of the payment, and
then to the principal. Prepayments of scheduled installments, or any portion thereof, may be made at any time and shall
be applied to the installments last to become due under the loan and shall not affect the obligation of the borrower to pay
the remaining installments.
(4) The Assistant Administrator for the Disaster Assistance Directorate may defer payments of principal and interest
until FEMA makes its final determination with respect to any Application for Loan Cancellation which the borrower may
submit. However, interest will continue to accrue.
(5) Any costs incurred by the Federal Government in collecting the note shall be added to the unpaid balance of the
loan, bear interest at the same rate as the loan, and be immediately due without demand.
(6) In the event of default on this note by the borrower, the FEMA claims collection officer will take action to recover
the outstanding principal plus related interest under Federal debt collection authorities, including administrative offset
against other Federal funds due the borrower and/or referral to the Department of Justice for judicial enforcement and
collection.
(c) Additional time. In unusual circumstances involving financial hardship, the local government may request an
additional period of time beyond the original 10 year term to repay the indebtedness. Such request may be approved by
the Assistant Administrator for the Disaster Assistance Directorate subject to the following conditions:
(1) The local government must submit documented evidence that it has applied for the same credit elsewhere and
that such credit is not available at a rate equivalent to the current Treasury rate.
(2) The principal amount shall be the original uncancelled principal plus related interest less any payments made.
(3) The interest rate shall be the Treasury rate in effect at the time the new Promissory Note is executed but in no
case less than the original interest rate. A reduced rate may not be applied if was it was not previously applied to the loan.
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(4) The term of the new Promissory Note shall be for the settlement period requested by the local government but not
greater than 10 years from the date the new note is executed.
[70 FR 60446, Oct. 18, 2005, as amended at 75 FR 2820, Jan. 19, 2010]
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§§206.378-206.389 [Reserved]
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Need assistance?
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| File Type | application/pdf |
| File Title | http://www.ecfr.gov/cgi-bin/text-idx?SID=91092b12e8ea49f2d5a0ec |
| Author | mpolanc1 |
| File Modified | 2016-01-26 |
| File Created | 2016-01-26 |