Instructions for FSA-2242

ASSIGNMENT OF GUARANTEE

This form is used by lenders when the guaranteed portion of an FSA guaranteed loan is assigned to a secondary market purchaser or holder.

Submit the original of the completed form in hard copy or facsimile to the appropriate USDA servicing office.

Customers who have established electronic access credentials with USDA may electronically transmit this form to the USDA servicing office, provided that the customer submitting the form is the only person required to sign the transaction.

Features for transmitting the form electronically are available to those customers with access credentials only. If you would like to establish online access credentials with USDA, follow the instructions provided at the USDA eForms web site.

Lenders must complete Part A items 1 through 11 and Part G items 1 through 4.

Holders must complete items G9 through G12.

Part A - Background Information - Items 1-11

Fld Name / Item No.	Instruction
1 Lender’s Name and Mailing Address	Enter name and mailing address of the lender.
2 Agency’s Name and Mailing Address	Enter name and mailing address of FSA office servicing the loan.
3 Holder’s Name and Mailing Address	Enter name and address of holder to whom the guarantee will be assigned.
Fld Name / Item No.	Instruction
4 Borrower Name	Enter name of the borrower as appears on the promissory note.
5 Loan Type	Enter loan type, as stated on FSA 2235, Loan Guarantee.
6 FSA Account Number	Enter the number assigned to the borrower by FSA. Enter the state and county code and borrower’s system generated FSA ID number.
7 Original Loan Amount	Enter the original total amount of the loan. This amount should correspond with the promissory note.
8 Date Promissory Note Executed	Enter the date the guaranteed promissory note was executed.
9 Amount of Principal Outstanding	(a) Enter the amount of principal outstanding on the entire loan as of the date in (b). (b) Insert the date that the assignment is effective.
10	(a) Enter percent of the loan guaranteed by FSA. (b) Enter the percentage of guaranteed portion assigned on this assignment. If all of the guaranteed portion is being assigned on this form write 100. Insert appropriate smaller percentage if the guarantee is being assigned to multiple holders. (c) Enter the appropriate dollar amount determined by multiplying 9(a) x 10(a) x 10(b). Example: A lender assigning the entire remaining guaranteed portion of a $100,000 loan with a 90 percent guarantee and an outstanding balance of $80,000. (80,000 X 90% X 100% = $72,000). The guarantee has been issued for 90% of the original loan amount. The holder agrees to purchase, and the lender assigns 100% of the guaranteed portion of the loan representing $72,000 of such loan now outstanding.
11 Servicing Fee	(a) Enter amount of servicing fee to be retained by the lender if it is a set dollar amount. (b) If the entire guaranteed portion is being assigned by this form, servicing fee may be entered as a percentage of average outstanding principal to be collected.

Fld Name /
Item No.

Instruction

Lender’s Name and Mailing Address

Enter name and mailing address of the lender.

Agency’s Name and Mailing Address

Enter name and mailing address of FSA office servicing the loan.

Holder’s Name and Mailing Address

Enter name and address of holder to whom the guarantee will be assigned.

Fld Name /
Item No.

Instruction

Borrower Name

Enter name of the borrower as appears on the promissory note.

Loan Type

Enter loan type, as stated on FSA 2235, Loan Guarantee.

FSA Account

Number

Enter the number assigned to the borrower by FSA. Enter the state and county code and borrower’s system generated FSA ID number.

Original Loan Amount

Enter the original total amount of the loan. This amount should correspond with the promissory note.

Date Promissory Note Executed

Enter the date the guaranteed promissory note was executed.

Amount of Principal Outstanding

(a) Enter the amount of principal outstanding on the entire loan as of the date in (b).

(b) Insert the date that the assignment is effective.

(a) Enter percent of the loan guaranteed by FSA.

(b) Enter the percentage of guaranteed portion assigned on this assignment. If all of the guaranteed portion is being assigned on this form write 100. Insert appropriate smaller percentage if the guarantee is being assigned to multiple holders.

Example: A lender assigning the entire remaining guaranteed portion of a $100,000 loan with a 90 percent guarantee and an outstanding balance of $80,000. (80,000 X 90% X 100% = $72,000). The guarantee has been issued for 90% of the original loan amount. The holder agrees to purchase, and the lender assigns 100% of the guaranteed portion of the loan representing $72,000 of such loan now outstanding.

Servicing Fee

(a) Enter amount of servicing fee to be retained by the lender if it is a set dollar amount.

(b) If the entire guaranteed portion is being assigned by this form, servicing fee may be entered as a percentage of average outstanding principal to be collected.

Part B Lender Certification

To be read by the Lender or authorized representative. Holders may also wish to read this part for informational purposes.

Part C Repurchase of Loan from Holder

To be read by the Lender and Holder or their authorized representatives.

Part D Government Notices to Holder and Lender

To be read by the Lender and Holder or their authorized representatives.

Part E Holder Certification

To be read by the Lender and Holder or their authorized representatives.

Part F Holder Rights

To be read by the Lender and Holder or their authorized representatives.

Part G - Signatures (to be completed by the Lender)

Fld Name / Item No.	Instruction
1 Name of Lender’s Represent-ative	Print name of Lender’s Representative.
2 Title	Print the title of the Lender’s Representative.
3 Signature of Lender’s Represent-ative	Enter Lender Representative’s signature. If you are mailing or faxing this form, print the form and manually enter your signature. If you have established credentials with FSA to submit forms electronically, use the buttons provided on the form for transmitting the form to the USDA servicing office.
4 Date	Enter the current date the form is signed in Item 3.

Fld Name /
Item No.

Instruction

Name of Lender’s Represent-ative

Print name of Lender’s Representative.

Title

Print the title of the Lender’s Representative.

Signature of Lender’s Represent-ative

Enter Lender Representative’s signature.

If you are mailing or faxing this form, print the form and manually enter your signature. If you have established credentials with FSA to submit forms electronically, use the buttons provided on the form for transmitting the form to the USDA servicing office.

Date

Enter the current date the form is signed in Item 3.

Items 5-8 are to be completed by FSA.

Part G - Signatures (to be completed by the Holder)

Fld Name / Item No.	Instruction
9 Name of Holder’s Represent-ative	Print the name of the employee of the firm that is purchasing the assignment.
10 Title	Print the title of the Holder’s Representative that signed the assignment.
11 Signature of Holder’s Represent-ative	A representative of the party to which the loan is being assigned by the lender will sign the form here.
12 Date	Enter the date that the form is signed by the Holder’s representative.