§ 5001.508 Mergers.
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Title 7 CFR: Agriculture › Chapter L: RURAL BUSINESS-COOPERATIVE SERVICE, RURAL HOUSING SERVICE, AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE › Part 5001: GUARANTEED LOANS › Subpart F: Servicing Provisions › § 5001.508: § 5001.508 Mergers.
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Agency approval.
All borrower mergers or consolidations (herein referred to as “mergers”) require approval by the Agency and the lender. The Agency may approve a merger when—
(a) The resulting organization will be eligible for a guaranteed loan and assumes all the liabilities and acquires all the assets of the merged borrower;
(b) The merger is in the best interest of the government and the merging organization;
(c) The resulting organization can meet all required conditions as contained in specific loan agreements; and
(d) All property can be legally transferred to the resulting organization.
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