# 7 C.F.R. § 1951.889 (2026): Transfer and assumption

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_889

## Section

- **Citation:** 7 C.F.R. § 1951.889 (2026)
- **Heading:** Transfer and assumption
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 7 CFR: Agriculture / Chapter XVIII: RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE SERVICE, AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE / Part 1951: SERVICING AND COLLECTIONS / Subpart R: Rural Development Loan Servicing / § 1951.889: § 1951.889   Transfer and assumption.

## Text

(a) All transfers and assumptions must be approved in advance in writing by Rural Development. Such transfers and assumptions must be to an eligible intermediary.
(b) Available transfer and assumption options to eligible intermediaries include the following:
(1) The total indebtedness may be transferred to another eligible intermediary on the same terms.
(2) The total indebtedness may be transferred to another eligible intermediary on different terms not to exceed those terms for which an initial loan can be made to an organization that would have been eligible originally.
(3) Less than total indebtedness may be transferred to another eligible intermediary on the same terms.
(4) Less than total indebtedness may be transferred to another eligible intermediary on different terms.
(c) The transferor will prepare the transfer document for Rural Development's review prior to the transfer and assumption.
(d) The transferee will provide Rural Development with a copy of its latest financial statement and a copy of its annual financial statement for the past 3 years if available; its Federal Tax Identification number; organizational charter; minutes from the Board of Directors authorizing the transaction; certification of good standing from the Secretary of State or whatever regulatory agency oversees nonprofit corporations for that State or Commonwealth where the entity is headquartered; and any other information that Rural Development deems necessary for its review.
(e) The assumption agreement will contain the Rural Development case nunber of the transferor and transferee.
(f) When the transferee makes a cash downpayment in connection with the transfer and assumption, any proceeds received by the transferor will be credited on the transferor's loan debt in inverse order of maturity.
(g) The Administrator or designee will approve or decline all transfers and assumptions.

## Nearby sections

- [7 C.F.R. § 1951.851 (2026) § 1951.851   Introduction.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_851.md)
- [7 C.F.R. § 1951.852 (2026) § 1951.852   Definitions and abbreviations.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_852.md)
- [7 C.F.R. § 1951.859 (2026) § 1951.859   Term of loans.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_859.md)
- [7 C.F.R. § 1951.866 (2026) § 1951.866   Security.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_866.md)
- [7 C.F.R. § 1951.872 (2026) § 1951.872   Other regulatory requirements.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_872.md)
- [7 C.F.R. § 1951.881 (2026) § 1951.881   Loan servicing.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_881.md)
- [7 C.F.R. § 1951.883 (2026) § 1951.883   Reporting requirements.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_883.md)
- [7 C.F.R. § 1951.884 (2026) § 1951.884   Revolved funds.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_884.md)
- [7 C.F.R. § 1951.885 (2026) § 1951.885   Loan classifications.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_885.md)
- [7 C.F.R. § 1951.889 (2026) § 1951.889   Transfer and assumption.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_889.md)
- [7 C.F.R. § 1951.890 (2026) § 1951.890   Office of Inspector General and Office of General Counsel referrals.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_890.md)
- [7 C.F.R. § 1951.891 (2026) § 1951.891   Liquidation; default.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_891.md)
- [7 C.F.R. § 1951.894 (2026) § 1951.894   Debt settlement.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_894.md)
- [7 C.F.R. § 1951.896 (2026) § 1951.896   Appeals.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_896.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T7_P1951_S1951_889. Check the current official text before relying on it. Not legal advice.