loan certifications and conditions

loan certifications and conditions Sec. 205. (a) As a condition of the Secretary’s guaranteeing any loan under this title, the lender shall certify that— (1) the lender is unwilling to provide credit to, or continue with, the loan applicant in the absence of the guarantee authorized by this title; (2) the loan applicant is directly and in good faith engaged in agricultural production; and (3) the financing to be furnished the loan applicant is to be used for one or more of the purposes set forth in section 203 of this title. (b) As a condition of the Secretary’s insuring any loan under this title, the loan applicant shall certify that— (1) the loan applicant will be unable to obtain financing in the absence of the assistance authorized by this title; (2) the loan applicant is directly and in good faith engaged in agricultural production; and (3) the financing to be furnished the loan applicant is to be used for one or more of the purposes set forth in section 203 of this title. (c) As a condition of insuring or guaranteeing any loan under this title, the Secretary must find that there is reasonable probability of accomplishing the objectives of this title and repayment of the loan. (d) The Secretary shall require— (1) the county committee authorized under section 332 of the Consolidated Farm and Rural Development Act to certify in writing that the applicant for a loan under this title meets the eligibility requirements for the loan, has the character, industry, and ability to carry out the proposed operations, and will, in the opinion of the committee, honestly endeavor to carry out the applicant’s undertakings and obligations; and (2) except for guaranteed loans, an agreement by the applicant for a loan under this title that if at any time it shall appear to the Secretary that the applicant may be able to obtain a loan from a production credit association, a Federal land bank, or other responsible cooperative or private credit source, at reasonable rates and terms for loans for similar purposes and periods of time, the applicant will, upon request by the Secretary, apply for and accept such loan in an amount sufficient to repay the Secretary or the insured lender, or both, and pay for any stock in a cooperative lending agency that must be purchased in connection with such loan.