Section 762.146 - Other servicing procedures(a)Additional loans and advances.(1) Notwithstanding any provision of this section, the PLP lender may make additional loans or advances in accordance with the lender's agreement with the Agency.(2) SEL and CLP lenders must not make additional loans or advances without prior written approval of the Agency, except as provided in the borrower's loan or line of credit agreement.(3) In cases of a guaranteed line of credit, lenders may make an emergency advance when a line of credit has reached its ceiling. The emergency advance will be made as an advance under the line and not as a separate note. The lender's loan documents must contain sufficient language to provide that any emergency advance will constitute a debt of the borrower to the lender and be secured by the security instrument. The following conditions apply: (i) The loan funds to be advanced are for authorized operating loan purposes;(ii) The financial benefit to the lender and the Government from the advance will exceed the amount of the advance; and(iii) The loss of crops or livestock is imminent unless the advance is made.(4) Protective advance requirements are found in § 762.149 .(b)Release of liability upon withdrawal. An individual who is obligated on a guaranteed loan may be released from liability by a lender, with the written consent of the Agency, provided the following conditions have been met: (1) The individual to be released has withdrawn from the farming operation;(2) A divorce decree or final property settlement does not hold the withdrawing party responsible for the loan payments;(3) The withdrawing party's interest in the security is conveyed to the individual or entity with whom the loan will be continued;(4) The ratio of the amount of debt to the value of the remaining security is less than or equal to .75, or the withdrawing party has no income or assets from which collection can be made; and(5) Withdrawal of the individual does not result in legal dissolution of the entity to which the loans are made. Individually liable members of a general or limited partnership may not be released from liability.(6) The remaining liable party projects a feasible plan (see § 761.2(b) of this chapter).(c)Release of liability after liquidation. After a final loss claim has been paid on the borrower's account, the lender may release the borrower or guarantor from liability if;(1) The Agency agrees to the release in writing;(2) The lender documents its consideration of the following factors concerning the borrower or guarantors: (i) The likelihood that the borrower or guarantor will have a sufficient level of income in the reasonably near future to contribute to a meaningful reduction of the debt;(ii) The prospect that the borrower or guarantor will inherit assets in the near term that may be attached by the Agency for payment of a significant portion of the debt;(iii) Whether collateral has been properly accounted for, and whether liability should be retained in order to take action against the borrower or a third party for conversion of security;(iv) The availability of other income or assets which are not security;(v) The possibility that assets have been concealed or improperly transferred;(vi) The effect of other guarantors on the loan; and(vii) Cash consideration or other collateral in exchange for the release of liability.(3) The lender will use its own release of liability documents.(d)Interest rate changes.(1) The lender may change the interest rate on a performing (nondelinquent) loan only with the borrower's consent.(2) If the loan has been sold on the secondary market, the lender must repurchase the loan or obtain the holder's written consent.(3) To change a fixed rate of interest to a variable rate of interest or vice versa, the lender and the borrower must execute a legally effective allonge or amendment to the existing note.(4) If a new note is taken, it will be attached to and refer to the original note.(5) The lender will inform the Agency of the rate change.(e)Consolidation. Two or more Agency guaranteed loans may be consolidated, subject to the following conditions: (1) The borrower must project a feasible plan after the consolidation. See § 761.2(b) of this chapter for definition of feasible plan.(2) Only OL may be consolidated.(3) Existing lines of credit may only be consolidated with a new line of credit if the final maturity date and conditions for advances of the new line of credit are made the same as the existing line of credit.(4) Guaranteed OL may not be consolidated with a line of credit, even if the line of credit has been rescheduled.(5) Guaranteed loans made prior to October 1, 1991, cannot be consolidated with those loans made on or after October 1, 1991.(6) OL secured by real estate or with an outstanding interest assistance agreement or shared appreciation agreement cannot be consolidated.(7) A new note or line of credit agreement will be taken. The new note or line of credit agreement must describe the note or line of credit agreement being consolidated and must state that the indebtedness evidenced by the note or line of credit agreement is not satisfied. The original note or line of credit agreement must be retained.(8) The interest rate for a consolidated OL loan is the negotiated rate agreed upon by the lender and the borrower at the time of the action, subject to the loan limitations for each type of loan.(9) The Agency approves the consolidation by executing a modification of guarantee. The modification will indicate the consolidated loan amount, new terms, and percentage of guarantee, and will be attached to the originals of the guarantees being consolidated. If loans with a different guarantee percentage are consolidated, the new guarantee will be at the lowest percentage of guarantee being consolidated(10) Any holders must consent to the consolidation, or the guaranteed portion must be repurchased by the lender.64 FR 7378, Feb. 12, 1999, as amended at 66 FR 7567 , Jan. 24, 2001; 78 FR 65530 , Nov. 1, 2013