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e-CFR data is current as of July 9, 2020

Title 7Subtitle BChapter VIISubchapter DPart 766Subpart E → §766.201


Title 7: Agriculture
PART 766—DIRECT LOAN SERVICING—SPECIAL
Subpart E—Servicing Shared Appreciation Agreements and Net Recovery Buyout Agreements


§766.201   Shared Appreciation Agreement.

(a) When a SAA is required. The Agency requires a borrower to enter into a SAA with the Agency covering all real estate security when the borrower:

(1) Owns any real estate that serves or will serve as loan security; and

(2) Accepts a writedown in accordance with §766.111.

(b) When SAA is due. The borrower must repay the calculated amount of shared appreciation after a term of 5 years from the date of the writedown, or earlier if:

(1) The borrower sells or conveys all or a portion of the Agency's real estate security, unless real estate is conveyed upon the death of a borrower to a spouse who will continue farming;

(2) The borrower repays or satisfies all FLP loans;

(3) The borrower ceases farming; or

(4) The Agency accelerates the borrower's loans.

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