Common use of Full Faith and Credit Clause in Contracts

Full Faith and Credit. The Loan Note Guarantee—DARBE con- stitutes an obligation supported by the full faith and credit of the United States and is incontestable except for fraud or misrepre- sentation of which Lender or any Holder has actual knowledge at the time it became such Lender or Holder or which Lender or any Holder participates in or condones. If the note to which this is attached or relates pro- vides for payment of interest on interest, then this Loan Note Guarantee—DARBE is void. In addition, the Loan Note Guarantee— DARBE will be unenforceable by Lender to the extent any loss is occasioned by the vio- lation of usury laws, negligent servicing, or failure to obtain the required security re- gardless of the time at which FmHA or its successor agency under Public Law 103–354 acquires knowledge of the foregoing. Any losses occasioned will be unenforceable to the extent that loan funds are used for pur- poses other than those specifically approved by FmHA or its successor agency under Pub- lic Law 103–354 in its Conditional Commit- ment for Guarantee. Negligent servicing is defined as the failure to perform those serv- ices which a reasonably prudent lender would perform in servicing its own portfolio of loans that are not guaranteed. The term includes not only the concept of a failure to act but also not acting in a timely manner or acting in a manner contrary to the man- ner in which a reasonably prudent lender would act up to the time of loan maturity or until a final loss is paid.

Full Faith and Credit. The Loan Note Guarantee—DARBE con- stitutes constitutes an obligation obliga- tion supported by the full faith and credit of the United States and is incontestable except ex- cept for fraud or misrepre- sentation misrepresentation of which the Lender or any Holder has actual knowledge knowl- edge at the time it became such Lender or Holder of this assignment, or which Lender or any the Holder participates in or condones. If the note to which this is attached or relates pro- vides for payment of interest on interest, then this Loan Note Guarantee—DARBE is void. In addition, the Loan Note Guarantee— DARBE will be unenforceable by Lender to the extent any loss is occasioned by the vio- lation of usury laws, negligent servicing, or failure to obtain the required security re- gardless of the time at which FmHA or its successor agency under Public Law 103–354 acquires knowledge of the foregoing. Any losses occasioned will be unenforceable to the extent that loan funds are used for pur- poses other than those specifically approved by FmHA or its successor agency under Pub- lic Law 103–354 in its Conditional Commit- ment for Guarantee. Negligent servicing is defined as the failure to perform those serv- ices which a reasonably prudent lender would perform in servicing its own portfolio of loans that are not guaranteed. The term includes not only the concept of a failure to act but also not acting in a timely manner or acting in a manner contrary to the man- ner in which a reasonably prudent lender would act up to the time of loan maturity or until a final loss is paid.