Does USA Funds require the cancellation of the multi-year function of an MPN if the borrower files bankruptcy?
USA Funds continues to require lenders to cancel future disbursements if the lender receives notification that the borrower has filed a claim-eligible bankruptcy prior to all disbursements of a loan being made. The guidance is provided in Appendix C of the Common Manual. USA Funds does not require the lender to invalidate the multi-year function of an MPN merely because the borrower filed a claim-eligible bankruptcy, however. The lender may use the MPN for serial loans, ensuring all requirements for future loans are met.
