FSA2232 Instruction

FSA-2232 Date of Modification: (06-01-2020)

CONDITIONAL COMMITMENT
INSTRUCTIONS FOR PREPARATION
Purpose: Used by the agency to inform the lender the loan has been approved, funds are available, and set forth the conditions to be met before a Loan Guarantee will be issued.
Handbook Reference: 2-FLP	Number of Copies: Original and one copy
Signatures Required: Lender and Authorized Agency Official.
Distribution of Copies: Original to FSA and lender to retain copy
Automation-Related Transactions: N/A

Contact the State Office if additional guidance is needed.

Fld Name /
Item No.

Instruction

1

Lender’s Name and Mailing Address

Enter the name and mailing address of the lender.

2

Type of Loan

Check the box for the appropriate loan type.

3

Principal Amount of Loan or Line of Credit Ceiling

Enter the principal amount of the loan or line of credit ceiling.

4

Percent of Guarantee

Enter the percent of guarantee.

5

Loan Applicant’s Name

Enter the loan applicant’s full name.

Format: LAST, FIRST MIDDLE

6

FSA Account number

Enter the FSA Account Number

7D

Guarantee Fee

Enter the guarantee fee.

9

Interest Assistance Requirements

If the loan has been approved for participation in the Interest Assistance program, enter the number of years interest assistance is to be available. If the loan is not approved for participation in the interest assistance program, enter “NA” or “0”.

14

Loan Purpose

Describe the specific purposes for which the loan funds have been approved.

Note: GLS Data filled forms will only provide very limited information. Saving document to PDF and editing with additional detail is recommended when using data filled forms.

Examples:

$250,000 line of credit for operating expenses and annual term debt payments from 2020 – 2025.

Purchase planter for $50,000.

Purchase 50 head feeder steers for $42,000.

Refinance State Bank note #12123 for $50,245 and Farm Bank note # 23234 for $76,125.

Construct new dairy barn including fixtures $300,000.

15

Interest Rate and Terms

Describe the interest rate and terms of the loan.

Note: GLS Data filled forms will only provide very limited information. Saving document to PDF and editing with additional detail is recommended when using data filled forms.

Examples:

Interest Rate: WSJ Prime + 1.00% reset every 2 years initially 5.75%

Repayment Period: 7 Year Term

Payment Frequency: Annual Payments Equally Amortized

Interest Rate: 4.7500% FIXED

Repayment Period: 7 Year Term

Payment Frequency: Annual Payments. 15-year amortization with 7-year balloon.

16

Security

Describe the security for the loan.

Note: For lien positions utilizing a shared position with the lender specific language

similar to that outlined in Par 166 D shall be included in Item 17 of this form to

establish proceed distribution in the event of liquidation

Examples:

Item Description	Lien Position	Estimated Value	Amount of Prior Lien	Collateral Value
45 acres in Sec. 4-T5N R10 W.	1st	$430,000	$0	$430,000
60 acres in Sec. 10 Cedar Township	1st lien shared with State Bank.	$690,000	Shared 1st lien. State Bank loan $220,000.	$470,000
2005 JD 7220 Tractor	2nd	$40,000	$10,000 Farmer’s Bank & Trust	$30,000
Equipment	2nd (Additional)	$300,000	$150,000 State Bank Loan #14575	$150,000

17

Other Requirements

Enter any additional conditions not listed elsewhere in this document. Conditions should be case specific and tailored to the specific borrower. Long lists of standard conditions

developed for all borrowers should NOT be used.

18

Commitment

Expiration

Enter the number of days this Conditional Commitment will be valid. The number of days should consider the time necessary for the borrower to meet any pre closing conditions, including construction if necessary, and the lender to complete any security perfections and other pre closing tasks. For example, a line of credit may be 60 days while construction may be 6 months.

19A

Signature of Authorized Agency Official

Enter signature of authorized agency official.

19B

Date

Enter date signed by authorized agency official.

19C

Name

Enter name of authorized agency official.

19D

Title

Enter title of authorized agency official

NOTE: Blocks 20 – 21 B are completed by the lender.

20

Acceptance or Rejection of Conditions

If the conditions are acceptable, check box A; otherwise, select the appropriate response and describe proposed changes if applicable.

21B

Anticipated time of closing

Enter the number of days until loan closing is expected.

22 Note to Lender

Enter the name and address of the FSA Office to which closing documents, as required, should be returned.

NOTE: Blocks 23 A-D are completed by the lender.

23A

Signature of Lender Representative

Enter the lender representative’s signature.

23B

Date

Enter the date signed by the lender representative.

23C

Name

Print the lender representative’s name.

23D

Title

Print lender representative’s title.

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