FARM Manual - SERVICING

E. ASSUMPTION OF GUARANTEES

WHEDA will allow a Lender, other than the originating Lender, to assume an existing FARM loan. Contact WHEDA if you are interested in assuming a FARM loan.

After contacting WHEDA, the following steps must be completed:

1. A hold harmless agreement must be executed between the existing and proposed Lender. This agreement must absolve the current Lender of all liabilities related to the assigned loan;
2. The existing Note must be assigned in its entirety to the new Lender; and
3. All collateral documents related to the loan must be assigned to the new Lender.

After steps 1-3 are completed, forward all documents to WHEDA. The original Loan Authorization will be amended by WHEDA and a copy of the amendment will be forwarded to the new Lender.