7 CFR § 1951.265

7 CFR · Agriculture

§ 1951.265 — Application for subsequent loan, subordination, or consent to additional indebtedness from a borrower who has been requested to graduate.

7 CFR § 1951.265

TitleTitle 7: Agriculture PartPart 1951: Servicing and Collections

SourceeCFR (current through Apr 13, 2026)

This text of 7 C.F.R. § 1951.265 (Application for subsequent loan, subordination, or consent to additional indebtedness from a borrower who has been requested to graduate.) is published on Counsel Stack Legal Research, covering United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

7 C.F.R. § 1951.265 (2026).

Text

§ 1951.265 Application for subsequent loan, subordination, or consent to additional indebtedness from a borrower who has been requested to graduate.

(a)Any borrower who appears to meet the local commercial lending standards, taking into consideration the Agency's loan guarantee program, will not be considered for a subsequent loan, subordination, or consent to additional indebtedness until the borrower's ability or inability to graduate has been confirmed. An exception may be made where the proposed action is needed to alleviate an emergency situation, such as meeting applicable health or sanitary standards which require immediate attention.

(b)If the borrower has been requested to graduate and has also been denied a request for a subsequent loan, subordination, or consent to additional

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§ 1951.265 Application for subsequent loan, subordination, or consent to additional indebtedness from a borrower who has been requested to graduate.

(a) Any borrower who appears to meet the local commercial lending standards, taking into consideration the Agency's loan guarantee program, will not be considered for a subsequent loan, subordination, or consent to additional indebtedness until the borrower's ability or inability to graduate has been confirmed. An exception may be made where the proposed action is needed to alleviate an emergency situation, such as meeting applicable health or sanitary standards which require immediate attention.

(b) If the borrower has been requested to graduate and has also been denied a request for a subsequent loan, subordination, or consent to additional indebtedness, the borrower may appeal both issues.