- (a) Approval official. An official who has been delegated loan and/or grant approval authorities within applicable programs.
- (b) Assumption of debt. The agreement by one party to legally bind itself to pay the debt incurred by another.
- (c) CONACT. The Consolidated Farm and Rural Development Act, as amended.
- (d) Eligible applicant. An entity that would be legally qualified for financial assistance under the loan or grant program involved in the servicing action.
- (e) Ineligible applicant. An entity or individual that would not be considered eligible for financial assistance under the loan or grant program involved in the servicing action.
- (f) Nonprogram (NP) loan. An NP loan exists when credit is extended to an ineligible applicant and/or transferee in connection with loan assumptions or sale of inventory property; any recipient in cases of unauthorized assistance; or a recipient whose legal organization has changed as set forth in § 1951.220(e) of this subpart resulting in the borrower being ineligible for program benefits.
- (g) Servicing office. The State, District, or County Office responsible for immediate servicing functions for the borrower or grantee.
- (h) Transfer fee. A one-time nonrefundable application fee, charged to ineligible applicants for Rural Development services rendered in the processing of a transfer and assumption.
[55 FR 4399, Feb. 8, 1990, as amended at 69 FR 70884, Dec. 8, 2004]