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 Holder has actual knowledge at the time of this assignment or which it participates in or condones. The guarantee will be unenforceable by the Lender to the extent that any loss is occasioned by a provision for interest on interest or default or penalty interest, violation of usury laws, use of loan proceeds for unauthorized purposes, negligent loan origination, negligent loan servicing, or failure to obtain or maintain the required security regardless of the time at which USDA acquires knowledge of the foregoing. Any losses will be unenforceable by the Lender to the extent that loan funds were used for purposes other than specifically approved by USDA in its Conditional Commitment or approved amendment thereof.

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 Holder has actual knowledge at the time it becomes such a lender or holder of this assignment assignment, or which it participates in or condones. The guarantee will be unenforceable by the Lender to the extent that any loss is occasioned by a provision for interest on interest or default or penalty interest, violation of usury laws, use of loan proceeds for unauthorized purposes, negligent loan origination, negligent loan servicing, or failure to obtain obtain, perfect, document, and or maintain the required collateral or security position regardless of the time at which USDA acquires knowledge of the foregoing. Any losses will be unenforceable by the Lender to the extent that loan funds were used for purposes other than specifically approved by USDA in its Conditional Commitment or approved amendment thereof.