Assignment of Guaranteed Portion Law and Legal Definition

According to 7 CFR 761.2 [Title 7 – Agriculture; Subtitle B -- Regulations of The Department of Agriculture; Chapter VII Farm Service Agency, Department of Agriculture; Subchapter D Special Programs; Part 761 General Program Administration; Subpart A General Provisions], assignment of guaranteed portion is “a process by which the lender transfers the right to receive payments or income on a guaranteed loan to another party, usually in return for payment in the amount of the loan's guaranteed principal. The lender retains the unguaranteed portion in its portfolio and receives a fee from the purchaser or assignee to service the loan and receive and remit payments according to a written assignment agreement. This assignment can be reassigned or sold multiple times.”