5001-6 Instuctions - 05-25-2022

Instructions for RD 5001-6

ASSIGNMENT GUARANTEE AGREEMENT

The lender uses this form to assign or sell all or part of the guaranteed portion of a loan.

An Assignment Guarantee Agreement should be issued for each guaranteed note the lender wishes to sell or assign.

If a loan is subsequently sold or assigned the Agency must be notified using any format, including that used by the Securities Industry and Financial Markets Association. The original Assignment Guarantee Agreement must be transferred to the new holder.

Lenders must complete all items identified in the following table.

Blanks on the form are numbered from left to right on each line and then by line from top to bottom of each page.

Fld Name / Item No.		Instruction
Program		Indicate the applicable program
USDA’s Borrower and Loan Identification Number		Enter the USDA’s Borrower and Loan Identification Number from the Loan Note Guarantee—must be an exact match. It is the borrowers case number followed by the loan number. The case number is the codes for the state and county in which the business is located, followed by the GLS system-generated 9-digit borrower identification number. The loan number is assigned by the finance office such as 50 or 51.
Line 1.		Enter the name of the lender
Line 2.		Enter the name of the borrower
Line 3.		Enter the principal amount of the loan
Line 4.		Enter date the Promissory Note(s) were executed
Line 5.		Enter the percent of loan guarantee. Example: 80%, 70%, or 60% guaranteed as applicable to the loan program per published annual fee notice
Line 6.		Enter the dollar amount that equals the guaranteed portion of the loan(s). Example 1: $2,000,000 loan with 80% guarantee, enter $1,600,000
Line 7.		Enter the total number of notes issued for the project
Table		Use the plus and minus icons to add or remove notes associated with the project. The total number of lines in the table should equal the entry made in line 7 above. See examples below
Lender’s Identifying Loan Number		Enter the number associated with each individual loan issued by the lender
Lender's Promissory Note Number		Enter the number associated with each individual promissory note issued by the lender
Face Amount		Enter the face amount (amount stated on note that borrower is obligated to pay)
Percent of Total Loan Amount		Enter the percent of total loan amount attributed to each promissory note
Amount Guaranteed		Face amount times percent of guarantee as noted in Line 5
Total – Face Amount of Note		Add all “face amount of note(s)” and enter total. Total should equal “principal amount of loan” noted in Line 3 above - this should autofill
Total – Amount Guaranteed		Add all “amount(s) guaranteed” and enter total. Total should equal entry in Line 6 above - this should autofill
Line 8.		Enter the Holder’s name
Line 9.		Enter the percent of the guaranteed loan the holder desires to purchase
Line 10.		Enter the Promissory Note Number of the subject assignment
Item 1.		Enter the principal amount of the loan now outstanding
Item 1a.		Enter the percent of the guaranteed portion of the Promissory Note the lender assigns the holder (Should match entry in Line 9 above)
Item 1b.		Enter the dollar amount that equals the guaranteed portion of the loan assigned to holder
Item 2.		Read Only
Item 3. Servicing Fee		Enter the percent of the annual servicing fee the holder agrees the lender will retain
Item 4.		Read Only
Item 5.		Read Only
Item 6.		Read Only
Item 7.		Read Only
Item 8.		Read Only
Item 9.		Read Only
Item 10.		Read Only
Item 11.		Read Only
Item 12.		Read Only
Item 13: Line 1	Enter the applicable USDA Agency initiating notices (RBCS, RHS, etc.)
Item 13: Line 2	Enter State in which the USDA Agency is initiating notices.
Item 13: Line 3	Enter the mailing address for Agency correspondence related to the Assignment Guarantee Agreement (Typically, the state office address is used)
Date	Enter the date this agreement is signed
By	Enter the name of the USDA approval official authorized to sign the Assignment Guarantee Agreement
Title	Enter the title of the USDA approval official authorized to sign the Assignment Guarantee Agreement
Lender	Enter the name of the lender
Address	Enter the address of the lender
By	Enter the lender representative Signature required
Title	Enter the title of the lender representative
Holder	Enter the name of the holder
Address	Enter the address of the holder
By	Enter the holder’s signature
Title	Enter the holder’s title

Example 1 (partial):

The lender closed the loan using a single. 100% of note #0002021001 in the face amount of $2,000,000, with an 80% USDA guarantee is being assigned to Raymond James Financial.

Add/ Remove	Lender’s Identifying Note Number	Face Amount	Percent of Total Loan Amount	Amount Guaranteed
	00020210001	$2,000,000.00	80%	$1,600,000
Total:		$2,000,000.00		$1,600,000

Raymond James Financial (Holder) desires to purchase from Lender 100 percent of the guaranteed portion of Promissory Note Number 00020210001. Copies of Borrower’s Promissory Note(s) and Loan Promissory Note Guarantee are attached hereto as a part hereof. Upon execution, a copy of all Assignment Guarantee Agreements associated with a Promissory Note will be attached to the original Promissory Note to be physically retained by original Lender. The original of the Assignment is retained by the Holder. Holder's rights to payments are listed herein.

All terms not otherwise defined have the definitions given to them in the 7 CFR part 5001.3.

NOW, THERFORE, THE PARTIES AGREE:

1. The principal amount of the Promissory Note now outstanding is $ 2,000,000. Lender hereby assigns to Holder 100 percent of the guaranteed portion of the Promissory Note representing $1,600,000 of such loan now outstanding in accordance with all of the terms and conditions hereinafter set forth. The Lender and USDA certify to the Holder that the Lender has paid and USDA has received the guarantee fee in exchange for the issuance of the Loan Promissory Note Guarantee and any applicable fees.

Example 2 (partial):

The lender closed the loan using multiple notes. 100% of note #0002021002 in the face amount of $500,000, with an 100% USDA guarantee is being assigned to Raymond James Financial.

Add/ Remove	Lender’s Identifying Note Number	Face Amount	Percent of Total Loan Amount	Amount Guaranteed
	00020210001	$1,100,000.00	100%	$1,100,000
	00020210002	$500,000	100%	$ 500,000
	00020210003	$400,000	0%	$ 0
Total:		$2,000,000.00		$1,600,000

Raymond James Financial (Holder) desires to purchase from Lender 100 percent of the guaranteed portion of Promissory Note Number 0002021002. Copies of Borrower’s Promissory Note(s) and Loan Promissory Note Guarantee are attached hereto as a part hereof. Upon execution, a copy of all Assignment Guarantee Agreements associated with a Promissory Note will be attached to the original Promissory Note to be physically retained by original Lender. The original of the Assignment is retained by the Holder. Holder's rights to payments are listed herein.

All terms not otherwise defined have the definitions given to them in the 7 CFR part 5001.3.

NOW, THERFORE, THE PARTIES AGREE:

1. The principal amount of the Promissory Note now outstanding is $ 500,000. Lender hereby assigns to Holder 100 percent of the guaranteed portion of the Promissory Note representing $500,000 of such loan now outstanding in accordance with all of the terms and conditions hereinafter set forth. The Lender and USDA certify to the Holder that the Lender has paid and USDA has received the guarantee fee in exchange for the issuance of the Loan Promissory Note Guarantee and any applicable fees.

Example 3 (partial):

The lender closed the loan using multiple notes. 50% of note #0002021003 in the face amount of $500,000, with a 100% USDA guarantee is being assigned to Raymond James Financial.

Add/ Remove	Lender’s Identifying Note Number	Face Amount	Percent of Total Loan Amount	Amount Guaranteed
	00020210001	$1,100,000.00	100%	$1,100,000
	00020210002	$500,000	100%	$ 500,000
	00020210003	$400,000	0%	$ 0
Total:		$2,000,000.00		$1,600,000

Raymond James Financial (Holder) desires to purchase from Lender 50 percent of the guaranteed portion of Promissory Note Number 0002021002. Copies of Borrower’s Promissory Note(s) and Loan Promissory Note Guarantee are attached hereto as a part hereof. Upon execution, a copy of all Assignment Guarantee Agreements associated with a Promissory Note will be attached to the original Promissory Note to be physically retained by original Lender. The original of the Assignment is retained by the Holder. Holder's rights to payments are listed herein.

All terms not otherwise defined have the definitions given to them in the 7 CFR part 5001.3.

NOW, THERFORE, THE PARTIES AGREE:

1. The principal amount of the Promissory Note now outstanding is $ 500,000. Lender hereby assigns to Holder 50 percent of the guaranteed portion of the Promissory Note representing $250,000 of such loan now outstanding in accordance with all of the terms and conditions hereinafter set forth. The Lender and USDA certify to the Holder that the Lender has paid and USDA has received the guarantee fee in exchange for the issuance of the Loan Promissory Note Guarantee and any applicable fees.