FSA-2242 Assignment of Guarantee

This form is available electronically. Form Approved - OMB No. 0560-0155

(See Page 3 for Privacy Act and Paperwork Reduction Act Statements.)

FSA-2242 U.S. DEPARTMENT OF AGRICULTURE Position 2 (03-03-15) Farm Service Agency ASSIGNMENT OF GUARANTEE
PART A - BACKGROUND INFORMATION
1. Lender's Name and Mailing Address      	2. Agency's Name and Mailing Address      
3. Holder's Name, Mailing Address and Email Address      	4. Borrower's Name      
	5. Loan Type FO OL CL		6. Case Number
			A. State Cd.   	B. County Cd.    		C. Borrower's ID No.      
	7. Original Loan Amount			8. Date Promissory Note Executed      
	$	     
	9. Amount of Principal Outstanding (a) $      				(b) As of Date:      

10. The United States of America, acting through the Farm Service Agency (Government), entered into a loan guarantee using FSA-2235/FSA-1980-27,

or predecessor RD-449-34 or earlier version of the Agency loan guarantee with the lender. This loan has been issued with (a)					     	%
guarantee. The holder agrees to purchase, and the lender assigns (b)			     	% of the guaranteed portion of the loan representing
(c) $	     	of such loan now outstanding according to the conditions in this agreement.

11. SERVICING FEE: The lender will retain a servicing fee of: (a) $

     

or (b)

     

%.

Copies of the following are attached:

- FSA-2235/FSA-1980-27, ''Loan Guarantee,'' or predecessor RD-449-34, ''Loan Note Guarantee,'' or earlier versions of the Agency's guaranteed

document.

- Promissory Note.

PART B - LENDER CERTIFICATION: The Lender certifies or agrees that:
1. Guarantee Fee	It has paid any required guarantee fee to the Government in exchange for the issuance of the loan guarantee.
2. Knowledge of Borrower Prepayment	It has no knowledge or information, through the exercise of reasonable diligence, that would indicate the likelihood of default or prepayment.
3. Payment Funds	In the event of prepayment, any funds will be either the borrower's own funds, or funds borrowed by the borrower pursuant to a separate transaction, and the prepayment is in accordance with the loan documents.
4. Servicing Responsibilities	It will be responsible for servicing the entire loan and will remain mortgagee and secured party of record.
5. Loan Security	The entire loan will be secured by the same security with equal lien priority for the guaranteed and unguaranteed portions of the loan.
6. Remitting Payments	It will receive all payments of principal or interest (including any loan subsidy) and will promptly remit to the holder the holder's pro rata share determined according to the respective interests, in the loan, as agreed by the holder and lender.

The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for employment on the basis 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-2242 (03-03-15) Page 2 of 3

PART C - REPURCHASE OF LOAN FROM HOLDER:
1. Lender Repurchase	The lender acknowledges that it has no authority to unilaterally repurchase the guaranteed portion from the holder without written concurrence from the Government. Lender may repurchase only as provided in this agreement and 7 C.F.R. Part 762.
2. Repurchase for Servicing Purposes	Lender may repurchase the loan to restructure loan payments or other servicing actions. If the borrower's ability to remain in business is directly dependent upon a change in the provisions relating to the borrower's installment payments, the Government may permit the lender to repurchase the guaranteed interest from the holder if all of the following conditions exist: a. Lender has submitted a written request to Government for concurrence providing justification for repurchase. b. The change in terms and conditions are to the borrower's benefit. c. The lender must change the loan terms and conditions if repurchased.
3. Government Repurchase for Servicing Purposes	If the lender does not repurchase the loan, Government at its option may purchase the guaranteed portions of the loan for servicing purposes.
4. Holder Demand for Repurchase	The holder will have the right to demand repurchase, in either of the circumstances below. The holder will notify the Government when circumstances exist that would give them the right to demand repurchase. The amount repurchased will be equal to the unpaid guaranteed portion of the principal and interest less lender's servicing fee. a. The borrower is in default not less than 60 days on principal or interest due on the loan; or, b. The lender has failed to remit to the holder the holder's pro rata share of any payment made by the borrower or the Agency.
5. Process for Holder to Demand Repurchase	a. To demand repurchase, the holder will send a letter to the lender with a copy to the Government demanding repurchase of the loan. b. The lender will repurchase the guaranteed portion if desired or if necessary to facilitate servicing of the loan such as the application of interest assistance, or to restructure the terms of a defaulted loan when the holder will not agree to the change. c. The lender will accept an assignment without recourse from the holder upon repurchase.
6. Government Repurchase	If the lender does not repurchase the loan, the holder must inform the Government that demand was made on the lender and the lender refused. Following the lender's refusal, the holder may continue as holder of the loan or demand that the Government purchase the guaranteed portion. If the holder demands Government purchase, the Government will pay the holder within 30 days when both the lender and holder agree on the repurchase amount. The Government will only pay interest that accrues up to 90 days after the holder has demanded repurchase by the lender. However, if the holder requested purchase by the Government within 60 days of the request to the Lender and for any reason not attributable to the holder and the lender, the Government cannot make payment within 30 days of the holder's demand to the Government, the holder will be paid interest to the date of the payment. The Government may purchase the guaranteed portion from the holder for servicing at any time at its option. When the Government purchases the guaranteed portion, the holder will re-assign the assignment of guarantee to the Government without recourse.
7. Lender Obligations for Government Repurchase	a. Lender consents to the purchase by the Government and agrees to furnish on request by Government a current statement certified by an appropriate authorized officer of the lender of the unpaid principal and interest then owed by the borrower on the loan and the amount then owed to any holder. Any discrepancy between the amount claimed by the holder and the information submitted by the lender must be resolved before payment will be approved. Such a conflict will suspend the running of the 30 day payment requirement. b. Lender agrees that any purchase by Government does not change, alter or modify any of the lender's obligations to Government arising from said loan or guarantee, nor does it waive any of Government's rights against lender and that Government has the right to set off against lender all rights inuring to Government as the holder of this instrument against Government's obligation to the lender under the loan guarantee.

FSA-2242 (03-03-15) Page 3 of 3

	PART D - GOVERNMENT NOTICES TO HOLDER AND LENDER
	1. Guarantee Fee	Government has received any required guarantee fee for issuance of the guarantee.
	2. Lender Regulatory Obligations	Holder will succeed to all rights of the lender under the loan guarantee to the extent of the assigned portion of the loan. The lender, however, will remain bound by all obligations under the loan guarantee and the regulations found in 7 C.F.R. Part 762 now in effect and future regulations not inconsistent with the provisions of this agreement.
	3. Full Faith and Credit	The loan guarantee constitutes an obligation supported by the full faith and credit of the United States and is incontestable except for fraud or misrepresentation of which the holder has actual knowledge at the time of this assignment or which it participates in or condones.
	4. Lender Reimbursement to Government	Nothing contained herein shall constitute any waiver by the Government of any rights it possesses against the lender. The lender agrees to promptly reimburse the Government for any payment to a holder in accordance with 7 C.F.R. Part 762 which, if such lender had held the guaranteed portion of the loan, Government would not be required to make.
	PART E - HOLDER CERTIFICATION
	Certification	If necessary, the holder will join to institute foreclosure action, or in lieu of foreclosure, take a deed of conveyance.
	PART F - HOLDER RIGHTS
	1. Right to Require Repurchase	The guarantee and right to require purchase will be directly enforceable by the holder notwithstanding any fraud or misrepresentation by the lender or any unenforceability of the loan guarantee by the lender.
	2. Reassignment	The holder, upon written notice to Government and the lender, may reassign the unpaid guaranteed portion of the loan it holds. Upon such notification, the assignee will succeed to all rights and obligations of the holder hereunder.
	PART G - SIGNATURES
1. Lender's Representative Name (print)      			2. Title (print)      
3. Lender's Representative Signature			4. Date      
5. Agency Official's Name (print)      			6. Title (print)      
7. Agency Official's Signature			8. Date      
9. Holder's Representative Name (print)      			10. Title (print)      
11. Holder's Representative Signature			12. Date      

NOTE:

The following statement is made in accordance with the Privacy Act of 1974 (5 U.S.C. 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 be 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 30 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.