Common use of Full Faith and Credit Clause in Contracts

Full Faith and Credit. The Loan Note Guarantee constitutes an obligation supported by the full faith and credit of the United States and is incontestable except for fraud or misrepresentation of which the Lender has actual knowledge at the time it became such Lender or which Lender participates in or condones. Any note which provides for the payment of interest on interest shall not be guaranteed. Any Loan Note Guarantee or Assignment Guarantee Agreement attached to or relating to a note which provides for pay- ment of interest on interest is void. The Loan Note Guarantee will be unenforceable by the Lender to the extent any loss is occasioned by violation of usury laws, negligent servicing, or failure to obtain the required security regardless of the time at which the Government acquires knowledge of the foregoing. Any losses will be unenforceable by the Lender to the extent that loan funds are used for purposes other than those specifically approved by the Government in its Conditional Commitment for Guarantee. Negligent servicing is defined as the failure to perform those services 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 manner in which a reasonably prudent Xxxxxx would act up to the time of loan maturity or until a final loss is paid. According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0575-0137. The time required to complete this information collection is estimated to average 1! hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

Full Faith and Credit. The Loan Note Guarantee constitutes Guarantee—DARBE con- stitutes an obligation supported by the full faith and credit of the United States and is incontestable except for fraud or misrepresentation misrepre- sentation of which the Lender has actual knowledge at the time it became such Lender Lend- er or which Lender participates in or condonescon- xxxxx. Any note which provides for the payment pay- ment of interest on interest shall not be guaranteed. Any Loan Note Guarantee Guarantee— DARBE or Assignment Guarantee Agreement Agree- ment—DARBE attached to or relating to a note which provides for pay- ment payment of interest on interest is void. The Loan Note Guarantee Guarantee—DARBE will be unenforceable by the Lender to the extent any loss is occasioned by violation of usury laws, negligent servicing, or failure to obtain the required security regardless of the time at which the Government FmHA or its successor agency under Public Law 103–354 acquires knowledge of the foregoing. Any losses will be unenforceable unen- forceable by the Lender to the extent that loan funds are used for purposes other than those specifically approved by the Government FmHA or its successor agency under Public Law 103–354 in its Conditional Commitment for Guarantee. Negligent servicing is defined as the failure to perform those services which a reasonably prudent Lender would perform in servicing its own portfolio of loans that are not guaranteedguar- anteed. The term includes not only the concept con- cept of a failure to act but also not acting in a timely manner or acting in a manner contrary con- trary to the manner in which a reasonably prudent Xxxxxx would act up to the time of loan maturity or until a final loss is paid. According to the Paperwork Reduction Act of 1995, no persons are required to respond to a Public reporting burden for this collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0575-0137. The time required to complete this information collection in- formation is estimated to average 1! 11⁄2 hours per response, including the time for reviewing instructionsin- structions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this bur- den estimate or any other aspect of this collec- tion of information including suggestions for re- ducing this burden, to Department of Agri- culture, Clearance Officer, OIRM, Room 404–W, Washington, D.C. 20250; and to the Office of Management and Budget, Paperwork Reduction Project (OMB No. 0575–0029), Washington, D.C. 20503.