§ 1752.6 Request for special servicing action. ( a ) Special servicing actions include, but are not limited to, one or more of the following: ( 1 ) Consent to additional, unsecured debt;
( 2 ) Parity lien;
( 3 ) Reamortization or rescheduling of debt payments;
( 4 ) Deferment of principal and/or interest;
( 5 ) Interest rate adjustment;
( 6 ) Transfer of collateral and assumption of debt;
( 7 ) Sale or exchange of loan collateral;
( 8 ) Sale of the note; and
( 9 ) Debt settlement.
( b ) In order for the Agency to consider one or more of the curative actions cited in paragraph (a) of this section, the Borrower must submit a written request to RUS. ( 1 ) The written request must contain the following items: ( i ) A detailed explanation of the request and why it is needed.
( ii ) Most recent audited financial statements for the Borrower.
( iii ) Borrower's Pro Forma 5-year financial forecast, which includes an Income Statement, Balance Sheet, and Statement of Cash Flows, 2 years of historical data, current year data and a 5-year forecast, with detailed supporting assumptions. Additionally, in order to request assistance under this paragraph (b)(1)(iii), the Borrower must make a showing that the account is delinquent and cannot be brought current within one year, or that the Borrower will become delinquent within 24 months, as demonstrated in the Pro Forma.
( iv ) Existing and projected subscriber numbers and service tiers, along with pricing for each tier. Additionally, for companies receiving support from the Federal Communications Commission, a detailed forecast of the support revenue, certified by a cost consultant, must be included.
( v ) Current organizational chart for the Borrower, related entities, and affiliated companies, as well as information relating to ownership interest in the Borrower and its related entities.
( vi ) A complete list of all collateral and steps the Borrower is taking to preserve the collateral.
( 2 ) The Agency may request the additional documents in paragraphs (b)(2)(i) through (iv) of this section after reviewing the Borrower's servicing request: ( i ) An appraisal in order to determine the adequacy of loan security or repayment ability;
( ii ) An itemized list of estimated liquidation expenses expected to be incurred along with justification for each expense;
( iii ) A legal opinion regarding RUS' interests in the impacted collateral and supporting evidence, in the form of Uniform Commercial Code Statements and filed Mortgages, that RUS maintains a first lien position on all assets of the Borrower, or such collateral as mandated by the Loan Documents; and
( iv ) Such other documents that may be relevant in individual cases, as determined by RUS.
( 3 ) When submitting a request for a servicing action, the distressed Borrower must consent to the following during the request and for the duration of the servicing action: ( i ) *On-site visit.* A Management Analysis Profile (MAP) visit of the Borrower's entire operation;
( ii ) *RUS priority payment.* Borrowers must agree that no other creditors will be paid without RUS consent, if RUS is not receiving full principal and interest payments;
( iii ) *Additional reporting and monitoring.* Throughout the term of the servicing action(s), RUS will require increased frequency and/or additional details to the reporting and monitoring required under the terms of the Loan Documents; and
( iv ) *Additional controls and limitations.* RUS may require additional controls and limitations such as segregation of accounts, RUS review of expenditures, etc.
( c ) False information provided by a Borrower, or by entities acting on behalf of the Borrower, will give rise to the immediate termination of any servicing action(s).