Guaranteed Farm Loan Programs

Guaranteed Farm Loan Programs

FSA2232 Instruction

Guaranteed Farm Loan Programs

OMB: 0560-0155

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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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