source:
  type: regulation
  id: usda-hb-3555-ch14
  authority: USDA HB-1-3555 ch14 bootstrap
  description: Bootstrap for USDA HB-1-3555 ch14 register.
obligations:
- id: usda-hb-3555-ch14-lender-prompt-withdrawal-when-no-longer-needed
  canonical_id: usda-hb-3555-ch14-lender-prompt-withdrawal-when-no-longer-needed
  section: "USDA HB-1-3555 Ch. 14.5 — Lender Withdrawal of Application"
  description: '[LENDER] must inform the Agency promptly when [LENDER] no

    longer requires the funds, to avoid depriving other pending

    applicants the opportunity to obtain a loan guarantee.

    '
  type: notify
  audit_question: When [LENDER] no longer requires the funds allocated to a USDA SFHGLP application (because of lender rejection, property change, or borrower's choice of a different program), can [LENDER] evidence prompt notification to the Agency to withdraw the application?
  workflow_phase: pre_closing
  owner_role: loan_officer
  secondary_owner_role: compliance_officer
  cadence: per_event
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch14
  - withdrawal
  - funding
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 14.5 — Lender Withdrawal of Application"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter14.pdf
    snapshot_id: a9d5b866236f91d4
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:8c8588117ba9f60c5e3d0ba0ea4ff61fa450165daebe0062c0f88f285c217452
    paragraph_quote: It is crucial for lenders to inform the Agency promptly when they no longer require
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot a9d5b866236f91d4 (Ch 14) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T23:58:54+00:00'
  promoted_from: usda-hb-3555-ch14-roundb-v1.yaml
  program_review: Does the program ensure prompt Agency notification to withdraw an application when [LENDER] no longer needs the obligated funds (lender rejection, property change, borrower's different-program choice), so other applicants aren't deprived?
  file_review: Spot-check withdrawn/dead applications; confirm prompt Agency withdrawal notification once funds were no longer needed.
  judgment: false
- id: usda-hb-3555-ch14-no-adverse-change-cert-on-conditional-commitment
  canonical_id: usda-hb-3555-ch14-no-adverse-change-cert-on-conditional-commitment
  section: "USDA HB-1-3555 Ch. 14.4.B — Conditional Commitments Subject to Availability of Funds"
  description: 'When funding becomes available after a Conditional Commitment

    was issued "subject to availability of funds," [LENDER] must

    certify to the Agency, using the process provided on Form RD

    3555-18, that there have been no adverse changes in the

    borrower''s financial condition since the Conditional

    Commitment was issued by the Agency.

    '
  type: do
  audit_question: For every USDA SFHGLP loan where a Conditional Commitment was issued "subject to availability of funds" and was later confirmed once funding became available, can [LENDER] evidence its certification on Form RD 3555-18 that there have been no adverse changes in the borrower's financial condition since the Conditional Commitment was issued?
  workflow_phase: pre_closing
  owner_role: loan_officer
  secondary_owner_role: underwriter
  cadence: per_event
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch14
  - conditional-commitment
  - certification
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 14.4.B — Conditional Commitments Subject to Availability of Funds"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter14.pdf
    snapshot_id: a9d5b866236f91d4
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:8c8588117ba9f60c5e3d0ba0ea4ff61fa450165daebe0062c0f88f285c217452
    paragraph_quote: A lender must certify to the Agency,
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot a9d5b866236f91d4 (Ch 14) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T23:58:54+00:00'
  promoted_from: usda-hb-3555-ch14-roundb-v1.yaml
  program_review: Does the program account for the 'subject to availability of funds' path — when funding later becomes available, [LENDER] certifies on Form RD 3555-18 that there have been no adverse changes in the borrower's financial condition since the Conditional Commitment issued?
  file_review: Spot-check loans confirmed after a 'subject to availability of funds' Conditional Commitment; confirm the Form RD 3555-18 no-adverse-change certification. The officer judges whether any change should have been treated as adverse.
  judgment: true
- id: usda-hb-3555-ch14-lender-bears-risk-pre-lng
  canonical_id: usda-hb-3555-ch14-lender-bears-risk-pre-lng
  section: "USDA HB-1-3555 Ch. 14.4.B — Risk of Loss Pre-LNG"
  description: 'Where [LENDER] elects to close a SFHGLP loan under a

    Conditional Commitment "subject to availability of funds,"

    [LENDER] will assume all risk of loss until funds become

    available and the Agency issues the Loan Note Guarantee.

    '
  type: do
  audit_question: For every USDA SFHGLP loan closed under a "subject to availability of funds" Conditional Commitment before the Loan Note Guarantee was issued, can [LENDER] evidence that it has assumed and tracked the risk of loss on that loan until LNG issuance?
  workflow_phase: pre_closing
  owner_role: loan_officer
  secondary_owner_role: compliance_officer
  cadence: per_event
  consequence: Lender bears full risk of loss until Agency issues Loan Note Guarantee.
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch14
  - risk-of-loss
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 14.4.B — Conditional Commitments Subject to Availability of Funds"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter14.pdf
    snapshot_id: a9d5b866236f91d4
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:8c8588117ba9f60c5e3d0ba0ea4ff61fa450165daebe0062c0f88f285c217452
    paragraph_quote: The lender will assume all risk of loss until funds become available and the
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot a9d5b866236f91d4 (Ch 14) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T23:58:54+00:00'
  promoted_from: usda-hb-3555-ch14-roundb-v1.yaml
  program_review: Does the program account for and track the §14.4.B risk allocation — where [LENDER] closes under a 'subject to availability of funds' Conditional Commitment, it bears all risk of loss until funds become available and the Loan Note Guarantee issues?
  file_review: Spot-check loans closed pre-LNG under a 'subject to availability of funds' commitment; confirm the risk-of-loss exposure was tracked through LNG issuance.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-23T23:58:54+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\usda-hb-3555-ch14-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
