Conditions for transfer of real estate and personal property security
Primary source
Verbatim text below is from the Electronic Code of Federal Regulations (eCFR), a public-domain U.S. government work. Always verify the current version with the eCFR before relying on it for any legal matter.
Full Text
(a) General conditions. (1) Approval of a security transfer and corresponding loan assumption obligates a new borrower to repay an existing FLP debt.
(2) All transferees will become personally liable for the debt and assume the full responsibilities and obligations of the debt transferred when the transfer and assumption is complete. If the transferee is an entity, the entity and each entity member must assume personal liability for the loan.
(3) A transfer and assumption will only be approved if the Agency determines it is in the Agency's financial interest.
(b) Agency consent. A borrower must request and obtain written Agency consent prior to selling or transferring security to another party.
[72 FR 63309, Nov. 8, 2007, as amended at 79 FR 60745, Oct. 8, 2014]
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.