RD-1951-10 Workout Agreement

UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL DEVELOPMENT
COMMUNITY PROGRAMS
WORKOUT AGREEMENT

Form RD 1951-10
(Rev. 04-05)

FORM APPROVED
OMB No. 0575-0066
Exp. Date: MM/DD/YY

Date:

A federal agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to a penalty for failure to
comply with a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays
a currently valid OMB Control Number.The OMB Control Number for this information collection is 0575-0066. Public reporting for this
collection of information is estimated to be approximately 3 hours per response, including the time for reviewing instructions,searching existing
data sources, gathering and maintaining the data needed, completing and reviewing the collection of information.
All responses to this collection of information are voluntary. However, in order to obtain or retain a benefit, the information in this form is
required in 7 CFR l951-E, Servicing of Community and Direct Business Programs Loans and Grants. Rural Development has no plans to publish
information collected under the provisions of this program. Send comments regarding this burden estimate or any other aspect of this collection
of information, including suggestions for reducing this burden to: Information CollectionClearance Officer, Rural Development Innovation
Center, Regulations Management Division at [email protected]

This Workout Agreement (Agreement) is made between
through the Department of Agriculture (Government).

(Borrower) and the United States of America, acting

The parties recite and declare that:
A. The Borrower has the following Direct Community Facilities, Association Recreation, or Water and/or Wastewater
loans owed to the Government that are in default (if more space is needed, use an attachment):
Loan
No.

Loan
Amount

Date
of Loan

Amount
Delinquent

Type of Default

B. The Government has the right to declare the entire balance of these loans immediately due and payable.
C. The parties wish to avoid any acceleration or other collection action by the Government by entering into this
Agreement.
D. For the reasons stated above, and in consideration of the mutual covenants and promises of the parties, the
Government and the Borrower agree as follows:
(1) Borrower will complete the following actions to resolve the defaults identified in paragraph A above, by the
following completion dates (if more space is needed, use an attachment):
Action

Completion Date

Action

Completion Date

(2) The Government will not accelerate Borrower's loans if each action
is completed to the satisfaction of the Government by the relevant
completion date.
(3) Failure of the Government to immediately exercise its rights to
accelerate the Borrower's loans upon Borrower's failing to comply
with the terms of this agreement will not preclude the Government
from doing so for the same or a subsequent default at a later time.
Any such failure shall not be construed as a waiver or
relinquishment of the Government's rights to any collection,
including subsequent acceleration.
(4) No other loan terms contained in the respective notes, bonds,
mortgages, or deeds of trust are modified by this Agreement.
(5) This Agreement shall be binding on the successors and assigns of the
parties and any present or subsequent owners, encumbrances, tenants,
and subtenants.
(6) This Agreement may not be changed except in a written document
signed by both parties.
(7) If any part of this Agreement is determined to be illegal or
unenforceable by a court of competent jurisdiction, those other
portions not affected by that decision shall remain in effect.
Borrower
Date
Government
Date
Instructions: Type the name and title of the authorized person signing for the
Borrower and the Government under their signature.

Part II

- Supporting information to be furnished by the Rural Development
Servicing office

Borrower Name
Case No.

State

County

Brief History of the Facility:

Reason(s) for Default (Explain)

Signature

- Servicing Official
Date