§ 1752.6 — Request for special servicing action.

7 CFR § 1752.6

• Title: Title 7: Agriculture
• Part: Part 1752: Servicing of Telecommunications Programs
• Source: eCFR (current through Apr 9, 2026)

Text

§ 1752.6 Request for special servicing action.

(a) Special servicing actions include, but are not limited to, one or more of the following:

(1) Consent to additional, unsecured debt;

(2) Parity lien;

(3) Reamortization or rescheduling of debt payments;

(4) Deferment of principal and/or interest;

(5) Interest rate adjustment;

(6) Transfer of collateral and assumption of debt;

(7) Sale or exchange of loan collateral;

(8) Sale of the note; and

(9) Debt settlement.

(b) In order for the Agency to consider one or more of the curative actions cited in paragraph (a) of this section, the Borrower must submit a written request to RUS.

(1) The written request must contain the following items:

(i) A detailed explanation of the request and why it is needed.

(ii) Most recent audited financial statements for the Borrower.

(iii) Borrower's Pro Forma 5-year financial forecast, which includes an Income Statement, Balance Sheet, and Statement of Cash Flows, 2 years of historical data, current year data and a 5-year forecast, with detailed supporting assumptions. Additionally, in order to request assistance under this paragraph (b)(1)(iii), the Borrower must make a showing that the account is delinquent and cannot be brought current within one year, or that the Borrower will become delinquent within 24 months, as demonstrated in the Pro Forma.

(iv) Existing and projected subscriber numbers and service tiers, along with pricing for each tier. Additionally, for companies receiving support from the Federal Communications Commission, a detailed forecast of the support revenue, certified by a cost consultant, must be included.

(v) Current organizational chart for the Borrower, related entities, and affiliated companies, as well as information relating to ownership interest in the Borrower and its related entities.

(vi) A complete list of all collateral and steps the Borrower is taking to preserve the collateral.

(2) The Agency may request the additional documents in paragraphs (b)(2)(i) through (iv) of this section after reviewing the Borrower's servicing request:

(i) An appraisal in order to determine the adequacy of loan security or repayment ability;

(ii) An itemized list of estimated liquidation expenses expected to be incurred along with justification for each expense;

(iii) A legal opinion regarding RUS' interests in the impacted collateral and supporting evidence, in the form of Uniform Commercial Code Statements and filed Mortgages, that RUS maintains a first lien position on all assets of the Borrower, or such collateral as mandated by the Loan Documents; and

(iv) Such other documents that may be relevant in individual cases, as determined by RUS.

(3) When submitting a request for a servicing action, the distressed Borrower must consent to the following during the request and for the duration of the servicing action:

(i) On-site visit. A Management Analysis Profile (MAP) visit of the Borrower's entire operation;

(ii) RUS priority payment. Borrowers must agree that no other creditors will be paid without RUS consent, if RUS is not receiving full principal and interest payments;

(iii) Additional reporting and monitoring. Throughout the term of the servicing action(s), RUS will require increased frequency and/or additional details to the reporting and monitoring required under the terms of the Loan Documents; and

(iv) Additional controls and limitations. RUS may require additional controls and limitations such as segregation of accounts, RUS review of expenditures, etc.

(c) False information provided by a Borrower, or by entities acting on behalf of the Borrower, will give rise to the immediate termination of any servicing action(s).