§ 800.300. Loan servicing.
336 words·~2 min read·
/us/cfr/t10/s§ 800.300·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Servicing of a loan under this regulation may be performed by DOE, by another Federal agency, or by a servicing agent (commercial bank, broker, or other financial institution or entity) having the capability, and legally qualified, to service the loan consistently with the requirements of this regulation, which contracts with DOE to act as servicing agent. In determining the capability of a prospective servicing agent, DOE shall give due consideration to the experience of the agent in providing financial services to minority business enterprises.
(b)If the servicing of the loan is by contract or other agreement, such contract or other agreement shall provide that the loan shall be serviced in accordance with this regulation and with the terms and conditions of the loan, under a standard of performance that a reasonable and prudent lender would require as to its own similar loan. Servicing responsibilities shall include, but not necessarily be limited to, the following:
(1)Loan disbursements as set forth in the loan agreement.
(2)Collection of principal and interest payments on a monthly basis.
(3)Maintenance of records on loan accounts.
(4)Notification of the Secretary, without delay, as to the following:
(i)That the initial disbursement or loan drawdown is ready to be made, together with evidence from the borrower that the bid or proposal preparation has begun or is about to begin.
(ii)The date and amount of each subsequent disbursement under the loan.
(iii)Any nonreceipt of payment within 10 days after the date specified for payment, together with evidence of appropriate notification to the borrower.
(iv)Any known failure by the borrower to comply with the terms and conditions of the loan agreement.
(v)Evidence, if any, that the borrower is likely to default on any condition set forth in the loan agreement or may be unable to make the next scheduled payment of principal or interest.
(5)Submittal to DOE of periodic (semi-annual or annual) reports on the status and conditions of the loan and of the borrower.