Conditional Commitment

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Form 4279-3
(Rev. 07-08)

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UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL DEVELOPMENT

FORM APPROVED
OMB NO. 0570-0017
OMB NO. 0570-0050

CONDITIONAL COMMITMENT
TO: Lender

Case No.

Lender's Address

State

Borrower

Principal Amount of Loan

From an examination of information supplied by the Lender and other relevant information, it appears that the transaction can properly
be completed.
Therefore, the United States of America acting through the United States Department of Agriculture (USDA) hereby agrees that, in
accordance with applicable provisions of the regulations, it will execute Form 4279-5, ''Loan Note Guarantee,'' subject to the conditions
and requirements specified in the regulations and herein.
The Loan Note Guarantee fee payable by the lender to USDA will be the amount as specified in the regulations on the date of this
Conditional Commitment for Guarantee. The interest rate for the loan is
% 1/. If a variable rate is used,
it must be tied to a base rate agreed to by the Lender and USDA which cannot change more often than quarterly (for Business and
Industry) and must be published periodically in a financial publication specifically agreed to by the Lender and Borrower.
A Loan Note Guarantee will not be issued until the Lender certifies that there has been no adverse change in the Borrower's financial
condition, nor any other adverse change in the borrower's condition, for any reason, during the period of time from USDA's issuance of
this Conditional Commitment for Guarantee to issuance of the Loan Note Guarantee regardless of the cause or causes of the change and
whether the cause or causes of the change were within the Lender's or Borrower's control. The Lender's certification must address all
adverse changes and be supported by financial statements of the Borrower and its guarantors executed not more than 60 days before the
time of certification. As used in this paragraph only, the term ''Borrower'' includes any parent, affiliate, or subsidiary of the Borrower.
In the event of the Government's failure to issue a guarantee in a situation where it is found to be in breach, the other party's remedy is
limited to a suit for the guaranteed portion of principal and interest which ultimately remains unpaid.
This agreement becomes null and void unless the conditions are accepted by the Lender and Borrower within 60 days from the date of
issuance by USDA.
Except as set out below, the purposes for which the loan funds will be used and the amounts to be used for such purposes are set out in the
Application for Loan Guarantee. Once this instrument is executed and returned to USDA no major change of conditions or approved loan
purpose as listed on the forms will be considered. Additional Conditions and Requirements including Source and Use of Funds: 2/

days from the date of this commitment, USDA
If the conditions set forth in this commitment are not met within
reserves the right to discontinue the processing of the application and terminate its commitment. If USDA decides to terminate this
commitment USDA will provide the Lender a written notice at least 14 days prior to termination. 3/
UNITED STATES OF AMERICA
By:
Typed or Printed Name:

Date:

(Title)
According to the Paperwork Reduction Act of 1995, no persons are 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 0570-0017 and 0570-0050. The time required to complete this information is estimated to average 1.5
hours 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.

Position 2

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ACCEPTANCE OF CONDITIONS
To: USDA 4/

The conditions of this Conditional Commitment for Guarantee including attachments are acceptable and the undersigned intends to
proceed with the loan transaction and request issuance of a Loan Note Guarantee within
days.

(Name of Lender)
Date:

By:
(Signature for Lender)

Date:
(Signature for Borrower)

1/

Insert fixed interest rate or, if authorized by regulations, variable interest rate followed by a "V" and the appropriate loan subsidy
rate, if applicable.

2/

Insert any additional conditions or requirements in this space or on an attachment referred to in this space; otherwise, insert
''NONE''.

3/

USDA will determine and insert the date by which conditions should be met.

4/

Return completed and signed copy of this form to USDA issuing office.

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