Government Guaranteed Loan Purchase Program
The Government Guaranteed Loan Purchase Program (FSA or Rural Development)
has been designed at BND to provide interest rate assistance to borrowers
that are experiencing cash flow difficulties.
Program Exceptions
FSA or Rural Development line of credit guarantees cannot be purchased.
(Contract of Guarantee)
Application Process - Application by a lead lender is required for BND's participation. Application for
additional documentation required when submitting a request to BND. Lead
lender is responsible for servicing the loan.
Interest Rates
The originating lender's interest rate on their share of the loan may be
variable or fixed regardless of BND's interest rate structure, and must
be in compliance with FSA or Rural Development policy.
Quarterly Adjustable Rate: The net interest rate is BND's Guaranteed Variable Index, adjusted quarterly.
Five Year Adjustable Rate: The net interest rate is BND's Guaranteed
Fixed Index, adjusted every five years.
Interest rates on loans in excess of $500,000 will be reviewed on a case
by case basis.
BND establishes the initial interest rate and service fee on the portion it purchases at the time the loan is funded.
Repayment Terms
The terms of the loan are contingent upon the agreement set between the
Borrower and FSA or Rural Development.
Fees
The originating lender may charge the Borrower an origination fee as may
be allowed by FSA or Rural Development. In addition, the originating lender
may receive an annual servicing fee on the guaranteed portion purchased
by BND.
BND has a $250 commitment fee for each loan.
For more information on this program or other Bank of North Dakota programs,
contact:
Bank of North Dakota
700 East Main Ave
PO Box 5509
Bismarck ND 58502-5509
(701) 328-5786
1-800-472-2166 ext. 5786
TDD (Telephone Device for the Deaf) 1-800-643-3916
|
