(a) Eligible entity types. The types of entities that may become an intermediary lender are:
(1) Private and Tribal operated nonprofit corporations;
(2) Public agencies - Any State or local government, or any branch or agency of such government having authority to act on behalf of that government, borrow funds, and engage in activities eligible for funding under this part;
(3) Indian tribes or tribal corporations; or
(4) Lenders who are subject to credit examination and supervision by an acceptable State or Federal regulatory agency.
(b) Intermediary lender requirements. The intermediary lender must:
(1) Have the legal authority necessary for carrying out the proposed loan purposes and for obtaining, giving security for, and repaying the proposed loan;
(2) Have a record of successful lending in Indian Country and knowledge and experience working with the BIA. The Agency will assess the applicant staff's training and experience in lending in Indian Country based on recent experience in loan making and servicing with loans that are similar in nature to the HFIL program. If consultants will be used, FSA will assess the staff's experience in choosing and supervising consultants; and
(3) Have an adequate assurance of repayment of the loan based on the fiscal and managerial capabilities of the proposed intermediary lender.
(c) The Intermediary Relending Agreement. The intermediary lender and the Agency will enter into an Intermediary Relending Agreement, satisfactory to the Agency based on:
(1) Loan documentation requirements including planned application forms, security instruments, and loan closing documents;
(2) List of proposed fees and other charges it will assess the ultimate recipients;
(3) The plan for relending the loan funds. The plan must have sufficient detail to provide the Agency with a complete understanding of the complete mechanics of how the funds will get from the intermediary lender to the ultimate recipient. Included in the plan are the service area, eligibility criteria, loan purposes, rates, terms, collateral requirements, a process for addressing environmental issues on property to be purchased, limits, priorities, application process, analysis of new loan requests, and method of disbursement of the funds to the ultimate recipient;
(4) Loan review plans that specify how the intermediary lender will review the loan request from the ultimate recipient and make an eligibility determination;
(5) An explanation of the intermediary lender's established internal credit review process; and
(6) An explanation of how the intermediary lender will monitor the loans to the ultimate recipients.