source:
  type: regulation
  id: usda-7cfr-3555.108
  authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.108 — Full faith and credit
  description: '7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program, §3555.108 Full faith and credit.
    Captured section-complete (all subsections verbatim).

    '
obligations:
- id: usda-7cfr-3555.108-a
  canonical_id: usda-7cfr-3555.108-a
  section: 7 CFR §3555.108(a)
  description: 'Full faith and credit — (a): (a) General. The Loan Note Guarantee constitutes an obligation supported
    by the full faith and credit of the United States and is incontestable except for fraud or misrepresentation
    of which the lender has actual knowledge at the time it becomes such lender or which the lender participates
    in or con…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.108
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (a) General. The Loan Note Guarantee constitutes an obligation supported by the full faith
      and credit of the United States and is incontestable except for fraud or misrepresentation of which the lender
      has actual knowledge at the time it becomes such lender or which the lender participates in or condones. Misrepresentation
      includes negligent misrepresentation.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.108 subsection (a) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.108-b
  canonical_id: usda-7cfr-3555.108-b
  section: 7 CFR §3555.108(b)
  description: 'Full faith and credit — (b): (b) Interest. A note that provides for the payment of interest on interest,
    however, shall not be guaranteed. If the note to which the Loan Note Guarantee is attached or relates provides
    for the payment of interest on interest, then the Loan Note Guarantee is void. Notwithstanding the prohibition
    of…'
  type: dont
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.108
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (b) Interest. A note that provides for the payment of interest on interest, however, shall
      not be guaranteed. If the note to which the Loan Note Guarantee is attached or relates provides for the payment
      of interest on interest, then the Loan Note Guarantee is void. Notwithstanding the prohibition of interest
      on interest, interest may be capitalized in connection with re-amortization under subpart G of this part.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.108 subsection (b) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.108-c
  canonical_id: usda-7cfr-3555.108-c
  section: 7 CFR §3555.108(c)
  description: 'Full faith and credit — (c): (c) Violations. The Loan Note Guarantee will be unenforceable by the
    lender to the extent any loss is occasioned by violation of usury laws, civil rights laws, negligent servicing,
    failure to obtain the required security or use of loan funds for unauthorized purposes, regardless of the time
    at which…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.108
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (c) Violations. The Loan Note Guarantee will be unenforceable by the lender to the extent any
      loss is occasioned by violation of usury laws, civil rights laws, negligent servicing, failure to obtain the
      required security or use of loan funds for unauthorized purposes, regardless of the time at which Rural Development
      acquires knowledge of the foregoing. Negligent servicing is defined as servicing that is inconsistent with
      this subpart and includes the failure to perform those services which a reasonably prudent Lender would perform
      in servicing its own loan portfolio of loans that are not guaranteed. The term includes not only the concept
      of a failure to act, but also not acting in a timely manner or acting contrary to the manner in which a reasonably
      prudent Lender would act up to the time of loan maturity or until a final loss is paid.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.108 subsection (c) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.108-d
  canonical_id: usda-7cfr-3555.108-d
  section: 7 CFR §3555.108(d)
  description: 'Full faith and credit — (d): (d) Indemnification. The loan note guarantee will remain in effect
    for any holder of the loan who acquired it from an originating lender. If the Agency determines that a lender
    did not originate a loan in accordance with the requirements in this part, and the Agency pays a claim under
    the loan guara…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.108
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(d) Indemnification. The loan note guarantee will remain in effect for any holder of the loan
      who acquired it from an originating lender. If the Agency determines that a lender did not originate a loan
      in accordance with the requirements in this part, and the Agency pays a claim under the loan guarantee, the
      Agency may revoke the originating lender''s eligibility status in accordance with subpart B of this part and
      may also require the originating lender: (1) To indemnify the Agency for the loss, if the default leading
      to the payment of loss claim occurred within five (5) years of loan closing, when one or more of the following
      conditions is satisfied:'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.108 subsection (d) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.108-i
  canonical_id: usda-7cfr-3555.108-i
  section: 7 CFR §3555.108(i)
  description: 'Full faith and credit — (i): (i) The originating lender utilized unsupported data or omitted material
    information when submitting the request for a conditional commitment to the Agency; (ii) The originating lender
    failed to properly verify and analyze the applicant''s income and employment history in accordance with Agency
    guide…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.108
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (i) The originating lender utilized unsupported data or omitted material information when submitting
      the request for a conditional commitment to the Agency; (ii) The originating lender failed to properly verify
      and analyze the applicant's income and employment history in accordance with Agency guidelines; (iii) The
      originating lender failed to address property deficiencies identified in the appraisal or inspection report
      that affect the health and safety of the occupants or the structural integrity of the property; (iv) The originating
      lender used an appraiser that was not properly licensed or certified, as appropriate, to make residential
      real estate appraisal in accordance with &#xA7; 3555.103(a); or, (2) To indemnify the Agency for the loss
      regardless of how long ago the loan closed or the default occurred, if the Agency determines that fraud or
      misrepresentation was involved with the origination of the loan. (3) In addition, the Agency may use any other
      legal remedies it has against the originating lender. [78 FR 73941, Dec. 9, 2013, as amended at 81 FR 6429,
      Feb. 8, 2016; 81 FR 26464, May 3, 2016]
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.108 subsection (i) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
