Common use of Conditions for Consent Clause in Contracts

Conditions for Consent. The Agency will consent to the terms of a junior lien if all of the following conditions are met: (1) The borrower’s ability to make scheduled loan payments is not jeop- ardized; (2) The borrower provides the Agency a copy of the farm operating plan sub- mitted to the junior lienholder, and the plan is consistent with the Agency op- erating plan; (3) The total debt against the secu- rity does not exceed the security’s market value; (4) The junior lienholder agrees in writing not to foreclose the security instrument unless written notice is provided to the Agency; (5) The borrower is unable to grad- uate on any program except for CL; and (6) The junior lien will not otherwise adversely impact the Agency’s ▇▇▇▇▇- cial interests. [72 FR 63309, Nov. 8, 2007, as amended at 75 FR 54016, Sept. 3, 2010] For loans secured by real estate, a borrower may request Agency consent to a severance agreement or similar in- strument so that future chattel ac- quired by the borrower will not become part of the real estate securing the FLP debt. The Agency will consent to severance agreements if all of the fol- lowing conditions are met: (a) The financing arrangements are in the financial interest of the Agency and the borrower; (b) The transaction will not ad- versely affect the Agency’s security po- sition;

Conditions for Consent. The Agency will consent to the terms of a junior lien if all of the following conditions are met: (1) The borrower’s ability to make scheduled loan payments is not jeop- ardized; (2) The borrower provides the Agency a copy of the farm operating plan sub- mitted to the junior lienholder, and the plan is consistent with the Agency op- erating plan; (3) The total debt against the secu- rity does not exceed the security’s market value; (4) The junior lienholder agrees in writing not to foreclose the security instrument unless written notice is provided to the Agency; (5) The borrower is unable to grad- uate on any program except for CLuate; and (6) The junior lien will not otherwise adversely impact the Agency’s ▇▇▇▇▇- cial interests. [72 FR 63309, Nov. 8, 2007, as amended at 75 FR 54016, Sept. 3, 2010] For loans secured by real estate, a borrower may request Agency consent to a severance agreement or similar in- strument so that future chattel ac- quired by the borrower will not become part of the real estate securing the FLP debt. The Agency will consent to severance agreements if all of the fol- lowing conditions are met: (a) The financing arrangements are in the financial interest of the Agency and the borrower; (b) The transaction will not ad- versely affect the Agency’s security po- sition;