[Code of Federal Regulations]
[Title 7, Volume 15]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR4279.149]

[Page 579]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES 
                   SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 4279_GUARANTEED LOANMAKING--Table of Contents
 
                  Subpart B_Business and Industry Loans
 
Sec. 4279.149  Personal and corporate guarantees.

    (a) Personal and corporate guarantees, when obtained, are part of 
the collateral for the loan. However, the value of such guarantee is not 
considered in determining whether a loan is adequately secured for 
loanmaking purposes.
    (b) Personal and corporate guarantees for those owning greater than 
20 percent of the borrower will be required where legally permissible, 
except as provided for in this section. Guarantees of parent, 
subsidiaries, or affiliated companies and secured guarantees may also be 
required.
    (c) Exceptions to the requirements for personal guarantees must be 
requested by the lender and concurred in by the Agency approval official 
on a case-by-case basis. The lender must document that collateral, 
equity, cash flow, and profitability indicate an above average ability 
to repay the loan.