5001-3 Conditional Comitment

UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL DEVELOPMENT

Form RD 5001- 3
(00-00)

FORM APPROVED
OMB NO. 0572-0155

CONDITIONAL COMMITMENT

Lender Name:

Case No.:

Lender’s Address:

Borrower:

Borrower’s Tax ID:

Principal Amount of Loan:

Type of Loan:

____ Community Facilities

_____Water and Waste Disposal

(7 CFR 5001.1(a)(1))

Interest Rate Information:

(7 CFR 5001.1 (a) (2)

Fixed:______ Variable:_______ Both:______

___ Business and Industry
(7 CFR 5001.1(a)(3))

FIXED:

If both, projected effective rate: _____________

___ Rural Energy for America Program
(7 CFR 5001.1(a)(4))

Guaranteed Rate
__________
Unguaranteed Rate ___________

Variable: Source of Base Rate Publication : __________________
Guaranteed Rate: _____Current Base Rate______ +Incremental Difference_____

Rate Change Period: ______ Rate Cap: ______

Rate Floor: ______

Unguaranteed Rate: ______ Current Base Rate______ +Incremental Difference______ Rate Change Period: ______ Rate Cap: ______

Rate Floor: ______

The United States of America acting through the United States Department of Agriculture (USDA) hereby agrees that, in accordance
with applicable provisions of 7 CFR 5001, it will execute Form RD 5001-4, “Loan Note Guarantee,” subject to the conditions and
requirements specified in the regulations and herein. The Lender shall not represent this Conditional Commitment as a guarantee.
The Guarantee fees payable by the Lender to USDA will be the amount as specified in 7 CFR 5001 and the applicable Federal Register
notice as determined by the date of this Conditional Commitment.
If the loan note guarantee is issued prior to completion of the project's construction an additional guarantee fee will be added.
A Loan Note Guarantee will not be issued until the Lender certifies that there has been no material adverse change in the Borrower’s
financial condition, nor any other material adverse change in the Borrower’s condition, for any reason, during the period of time from
USDA’s issuance of this Conditional Commitment for Guarantee to issuance of the Loan Note Guarantee regardless of the cause or
causes of the change and whether the cause or causes of the change were within the Lender’s or Borrower’s control.
This Conditional Commitment becomes null and void unless the conditions are accepted by the Lender and Borrower within 60 days
from the date of issuance by USDA, at which time the USDA reserves the right to discontinue further processing of the application
and terminate its commitment. If USDA decides to terminate this commitment, USDA will provide the lender a written notice of at
least 14 days prior to the termination.
This Conditional Commitment is effective until ________ . All conditions for the issuance of a Loan Note Guarantee must be met
during this period. The Lender must submit a written request to extend the Conditional Commitment thirty (30) days prior to its
expiration and obtain Agency written approval in accordance with 7 CFR 5001.451(e).
Except as set out below, the purposes for which the loan funds will be used and the amounts to be used for such purposes are set out in
the Application for Loan Guarantee. Once this instrument is executed and returned to USDA, no change of conditions or approved
loan purpose will be considered, unless requested in writing by the Lender and approved, in writing, by the Agency.
Additional Conditions and Requirements are in Attachment A of this form.
UNITED STATES OF AMERICA
Date: ________________________

By: ______________________________________________

_

Title
According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently
valid OMB control number. The valid OMB control number for this collection is 0572-0155. The time required to complete this information collection is estimated to average 1 hour per
response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. Responses to this collection of information are mandatory (7 CFR 5001). Send comments on the agency's need for this information, the accuracy of the provided burden estimates,
and any suggested methods for minimizing respondent burden, including through the use of automated collection techniques to InnovationCenterRegulations@usda.gov. Include the OMB
control number in any correspondence. Do not send the completed form to this address.

ACCEPTANCE OF CONDITIONS
To: USDA
Address: ______________________
______________________
_______________________

The conditions of this Conditional Commitment for Guarantee including attachments are acceptable and the undersigned intends
to proceed with the loan transaction.

_________________________________________________
(Name of Lender)
Date: _____________________________

By:_______________________________________________
(Signature for Lender)

Date: ______________________________

_________________________________________________
(Signature for Borrower)

ATTACHMENT A
ADDITIONAL CONDITIONS AND REQUIREMENTS
(Attach any additional conditions and/or requirements required for this Conditional Commitment)