IRP SERVICING

1. IRP SERVICING § 1951.854 – Ineligible assistance purposes §1951.854(a)(10) – Funds not utilized for more than 6 months = return to RD unless we make exception

2. IRP SERVICING §1951.871 … Post Award Requirements RD funds = deposit in a FDIC insured account Separate ledgers and segregated accounts Keep track of all jobs, etc., from UR loans (1951-4) UR cannot have loans from 2 Intermediaries w/o RD concurrence

3. IRP SERVICING §1951.877 – Loan Agreements Loan notes between Intermediary and UR List of required items Approved – OGC – add state requirements

4. IRP SERVICING §1951.881 (g) Field office to: (1) Review and analyze the quarterly/semiannual report of the intermediaries and reconcile same to the annual audits. (2) Review the annual audits of the intermediaries. (3) Review the semiannual reports of the intermediaries and take appropriate action when necessary

5. IRP SERVICING (4) Follow up on delinquent intermediaries to bring the account current. (5) Notify the Finance Office in writing when a loan is determined to be uncollectible. (6) Furnish to the Finance Office the necessary information to produce reamortization schedules.

6. IRP SERVICING (7) Provide the Finance Office a copy of any correspondence in regard to the restructuring of the loans. (8) Review reamortization schedules, the schedule will then be forwarded to the intermediary. (9) Confirm account balances.

7. IRP SERVICING (10) Assist Finance Office with correct loan balances. (11) Review intermediary’s plans, cash flow projections, balance sheets, and operating statements.

8. IRP SERVICING §1951.882 Field visits Annually Report = 1951-4 “Intermediary Relending Program/Rural Development Loan Fund Field Visit Review.”

9. IRP SERVICING Review Intermediaries (1) Marketing – Outreach (2) Financial Information a. Trends b. Interest rate spread = cover cost i. Administrative ii. Bad debt (3) Resolution of the last visits unresolved issues

10. IRP SERVICING (4) Credit elsewhere documented? (5) Collateral condition, maintenance, protection. (6) Loan Fund Procedures = Fed/State Insured Account. (7) UR Loans = Scope of Work Loan Agreement RD Policies and Procedures Eligible

11. IRP SERVICING (8) Report = Findings Including opinion Intermediary Financial Condition. (9) UR files are complete, organized, and current. (10) Confirm findings by Letter (b) All intermediaries – Annual Financial GAAP Audit. (c) Intermediary analyze UR

12. IRP SERVICING §1951.883 Reporting Requirements: (a) Intermediaries Reports (1) An annual audit; a. GAAP b. 90 days after end of year c. Unqualified = not required d. Compilations = not acceptable

13. IRP SERVICING (2) Quarterly or semiannual reports (due 30 days) after the end of the period; (i) Quarterly Reports a. 1st year b. 90% loan out (whichever is later) c. Delinquent d. RD determines Intermediary = noncompliance for any reason

14. IRP SERVICING (e) Loan not = protected by UR collateral and financial soundness. (f) OTHERWISE SEMI-ANNUAL (ii) Separate report for each IRP loan (iii) Form RD 1951-4, “ Report of IRP/RDLF Lending Activity”

15. IRP SERVICING (3) Annual report = jobs, income and ownership opportunities. (4) Proposed budget for the following year. (5) Other reports as the Agency may require from time to time. (b) Intermediaries = notify RD = UR > 90 days in arrears

16. IRP SERVICING §1951.884 Non-Federal Funds. (Changed by OGC and CR) Initial Agency funds = Federal Funds Revolved funds = Non-Federal for Agency environmental Agency approval of loan application

17. IRP SERVICING Revolved funds = Federal for Eligibility (including population requirements) Scope of Work Civil Rights and All other applicable laws

18. IRP SERVICING §1951.885 Loan Classifications classified at loan closing and; whenever = change = impact the original classification §1951.886 Transfer and Assumption Approved in advance Eligible Entity

19. IRP SERVICING §1951.886 Transfer and Assumption – Continued Transfers = (1) Total indebtedness = same terms (2) Total indebtedness = different terms (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.

20. IRP SERVICING (c) The transferor will prepare the transfer documents for Rural Development’s review prior to the transfer and assumption. (d) Transferee = info same as initial application. (e) The assumption agreement will contain the Rural Development case number of the transferor and transferee. (f) Cash Payment = applied to loan balance. (g) REQUIRES NATIONAL OFFICE APPROVAL

21. IRP SERVICING §1951.890 Office of Inspector General and Office of General Counsel referrals. OIG = RD refers to Regional Office RD Instruction 2012-B Copy to OGC OGC consulted Legal Issues

22. IRP SERVICING §1951.891 Liquidation; default. RD = takes over servicing, protect government interest (1) Declare that the loan is immediately due and payable (2) Liquidate Security (3) Use all servicing tools available (b) UR default = demand full payment

23. IRP SERVICING §1951.891 Liquidation; default – CONTINUED (c) Intermediary Failure any reason = Default Including timely relending of funds = full repayment (d) In the event of default, the intermediary will promptly be informed in writing of the consequences of failing to comply with loan covenant(s). (e) Protective advances to the intermediary will not be made in lieu of additional loans, in particular working capital loans. REQUIRES NATIONAL OFFICE APPROVAL.

24. IRP SERVICING §1951.891 Liquidation; default – CONTINUED (f) Bankruptcy= RD protect governments interest; Notify Regional OGC National Office = approve all expenses (g) Liquidation, management, and disposal of inventory property will be handled in accordance with 7 CFR Part 1955 Subparts A, B, and C.

25. IRP SERVICING §1951.894 Debt Settlement Debt settlement of all claims will be handled in accordance with the Federal Claims Collection Standards (4 CFR Parts 101-105).