Form LGA10 Loan Guarantee Agreement

IA Form LGA10
Revised X 202X

OMB Control No. 1076-0020
Expires: X/XX/202X

Loan Guarantee Agreement
This Loan Guarantee Agreement (“Agreement”) is entered into between the United States
Department of the Interior (“Department”), and ___________________________________________
(“Lender”), as of the date established below. The Agreement governs the Lender’s use of loan
guarantees obtained from the Department under the Loan Guarantee, Insurance and Interest Subsidy
Program, 25 U.S.C. §§ 1481 et seq. and 1511 et seq., and 25 CFR Part 103 (the “Program”).
1.

Except as specified by statutes or regulations governing the Program, or as otherwise
specified in this Agreement, the Department will guarantee payment of the Lender’s loss on
any loan made to a qualified Borrower, to the extent reflected on a valid Loan Guarantee
Certificate issued under the Program.

2.

The Lender must comply at all times with statutes and regulations governing the Program,
and with the terms of this Agreement (collectively, the “Program Terms”). The Department
may change the Program Terms from time to time, but if it does, Lender compliance must
correspond only with Program Terms in effect on the date of each Loan Guarantee Certificate
issued, unless and until the Lender specifically adopts subsequent Program Terms in writing.
The Lender also must comply at all times with the Conditions of Approval attached to the
Loan Guarantee Certificate for each specific loan.

3.

The Department may approve the Lender under any of three different classifications,
depending on factors such as the number of loans the Lender makes under the Program, the
total principal balance of the Lender’s Program loans, the number of years the Lender stays
involved with the Program, the relative benefits and opportunities the Lender gives to Indian
business efforts through the Program, and the Lender’s overall compliance with Program
requirements. A Lender approved by the Department under this Agreement may designate
itself a “Department of the Interior Approved Lender.” Upon completing at least three years
with an average outstanding principal balance of $3,000,000 in Program-guaranteed loans, a
Lender with a satisfactory record of Program compliance and at least one new loan guarantee
in the preceding three years may request approval from the Department for the designation
“Department of the Interior Preferred Lender.” After five years maintaining a minimum
outstanding balance of $3,000,000 in Program-guaranteed loans and/or a superior record of
enhancing economic opportunities for Indian businesses, a Department of the Interior
Preferred Lender with a satisfactory record of Program compliance and at least one new loan
guarantee in the preceding three years may request approval from the Department for the
designation “Department of the Interior Performance Lender.” The Department’s approval of
a Lender extends only to the distinct legal entity of the Lender seeking approval, and does not
extend to any parent entities, subsidiaries, or affiliates of the Lender. Execution of this
Agreement does not authorize the Lender to issue loans insured under the Program; insured
loans are subject to a separate Loan Insurance Agreement.
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IA Form LGA10
Revised X 202X

OMB Control No. 1076-0020
Expires: X/XX/202X

4.

In the event the Lender undergoes (a) a change in corporate structure; (b) a merger with any
other entity; or (c) any legal proceeding in which substantially all of its assets may be subject
to disposition through laws governing bankruptcy, insolvency, or receivership, this
Agreement will be deemed suspended as of the date of change or the commencement of the
legal proceeding. The Lender, or its successor in interest, must enter into a new Agreement
with the Department in order to secure new loan guarantees under the Program.

5.

During the term of this Agreement, and for such time thereafter as the Lender may hold one
or more Loan Guarantee Certificates under the Program, the Lender agrees to allow
representatives or agents of the Department to inspect the Lender’s records concerning any
and all loans guaranteed under the Program at any reasonable time, including any time during
the Lender’s normal business hours. The Lender agrees to supply whatever information the
Department may request, as long as it reasonably relates to any Department-guaranteed loan
or the Lender’s participation in the Program. For example, the Department may ask for
copies of all organizational documents of the Lender, including amendments, since those
documents may bear upon the Lender’s qualification to continue participating in the Program.

6.

Except as otherwise specified in the Conditions of Approval for a specific loan, the Lender
must submit loan transaction history reports quarterly, within 30 days after March 31, June
30, September 30, and December 31 of each year.

7.

The Department usually will prepare a Loan Guarantee Certificate for delivery to the Lender
on the loan closing date. In some cases, however, the Department may issue and deliver a
Loan Guarantee Certificate either before or after the loan closes. Absent a specific written
agreement to the contrary, a Loan Guarantee Certificate issued before the loan closing
becomes void if closing does not occur before 90 days after the date of the Loan Guarantee
Certificate.

8.

Unless consent is specifically withdrawn in whole or in part in writing, this Agreement
authorizes the Department and its agents to identify and discuss the Lender and its
representatives, and any Program related transaction involving the Lender and its
representatives, in audio, visual and/or written materials and in public presentations of a
promotional, educational, or evaluative nature. Upon request, the Lender agrees to diligently
seek approval from its Program borrowers for the use of the Borrower’s and the Borrower’s
representative’s identity and fundamental transaction details for similar use by the
Department, including details that might otherwise be prohibited from disclosure under the
Privacy Act, 5 U.S.C. § 552a et seq.

9.

When a Program guarantee relates significantly to commercial construction and/or renovation,
the Lender agrees to post a sign identifying the Department as a source of financial assistance
during the period of construction or renovation. The Department will provide all necessary
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IA Form LGA10
Revised X 202X

OMB Control No. 1076-0020
Expires: X/XX/202X

signage upon request.
10.

Except as expressly indicated in writing by a duly authorized Department official, the
Department bears no responsibility for any failure of the Lender to comply with Program
Terms or any applicable Conditions of Approval, regardless of the circumstances.

11.

Except as expressly indicated by Program Terms or any applicable Conditions of Approval,
the Lender should direct all correspondence with the Department concerning the Program to
the Zone Office serving the area in which the Borrower’s business is located. In particular, the
Lender must direct the following requests and notifications to the appropriate Zone Office: (a)
all requests for loan guarantee (25 CFR § 103.12); (b) all requests for loan modification
approval (25 CFR § 103,34); (c) all loan transfer notifications (25 CFR §§ 103.28, 103.29);
(d) all notices of Borrower default (25 CFR § 103.35); (e) all notices electing a remedy (25
CFR § 103.36); and (f) all claims for loss (25 CFR § 103.37). The Lender may seek guidance
from the Zone Office serving the Borrower’s business area with respect to fulfilling any
Program requirements. The Lender must send loan guarantee premium payments (25 CFR §
103.19) to the Loan Accounting Section.

12.

This Agreement remains in effect unless and until otherwise indicated under the Program
Terms, or until either party provides the other with written notice that it wishes to withdraw
from this Agreement as of a stated future date. The Department may terminate this
Agreement for cause at any time, without prior notice to the Lender. Termination of this
Agreement will not, in and of itself, affect any outstanding Loan Guarantee Certificates held
by the Lender.

13.

By executing this Agreement, the Lender represents to the Department that it meets or
exceeds the basic requirements for making guaranteed loans under the Program, including
without limitation the requirements specified at 25 CFR § 103.10.

This Agreement is effective as of the latest of the dates specified by the signature lines below:
Date:________________, 20____

Lender:
ABA No.:
Tax ID No.:

______________________________
______________________________
______________________________

By:
Title:
Address:
Phone No.:

______________________________
______________________________
______________________________
______________________________

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IA Form LGA10
Revised X 202X

OMB Control No. 1076-0020
Expires: X/XX/202X

Email:

Date:________________, 20____

______________________________

United States Department of the Interior

By:
Title:

______________________________
______________________________

Paperwork Reduction Act Statement: This form is covered by the Paperwork Reduction Act. It is used to establish the
respective rights and responsibilities of the respondent and the Federal government. The information is provided by
respondents to obtain or retain a benefit. In compliance with the Paperwork Reduction Act of 1995, as amended, the
collection has been reviewed by the Office of Management and Budget and assigned a number and an expiration date.
The number and expiration date are at the top right corner of the form. An agency may not sponsor or conduct, and a
person is not required to respond to, a request for information collection unless it displays a currently valid OMB Control
Number. The public reporting burden is estimated to average 2 hours per respondent. This includes the time needed to
understand the requirements, gather the information, complete the form, and submit it to the Department. Comments
regarding the burden or other aspects of the form may be directed to the Indian Affairs Information Collection
Clearance Officer, Office of Regulatory Affairs – Indian Affairs, 1001 Indian School Road NW, Suite 229,
Albuquerque, New Mexico 87104.
Privacy Act Statement (5 U.S.C. 552(a)): The authority for collecting this information is 25 U.S.C. 1511. The
information will be used to administer the Loan Guarantee, Insurance and Interest Subsidy Program, 25 U.S.C. 1481 et
seq. Disclosures of this information may be made to track and record payments and unpaid balances and
provide information on payments made for paying interest subsidy, credits obtained, service loans made, and
premiums paid by Lenders, and for the other routine uses described by system of record notice, BIA-13, Loan
Management and Accounting System.

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