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5 U.S.C. 301, 7 U.S.C. 1989, and 1981d(c).
72 FR 63316, Nov. 8, 2007, unless otherwise noted.
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(a) A borrower must meet the following eligibility requirements to be considered for primary loan servicing:
(1) The delinquency or financial distress is the result of reduced repayment ability due to one of the following circumstances beyond the borrower's control:
(i) Illness, injury, or death of a borrower or other individual who operates the farm;
(ii) Natural disaster, adverse weather, disease, or insect damage which caused severe loss of agricultural production;
(iii) Widespread economic conditions such as low commodity prices;
(iv) Damage or destruction of property essential to the farming operation;
(v) Loss of, or reduction in, the borrower or spouse's essential non-farm income; or
(vi) Catastrophic medical expenses for the care of a family member of the borrower or entity member, in the case of an entity borrower.
(2) The borrower does not have non-essential assets for which the net recovery value is sufficient to resolve the financial distress or pay the delinquent portion of the loan.
(3) If the borrower is in non-monetary default, the borrower will resolve the non-monetary default prior to closing the servicing action.
(4) The borrower has acted in good faith.
(5) Financially distressed or current borrowers requesting servicing must pay a portion of the interest due on the loans.
(6) The borrower must not be ineligible due to disqualification resulting from Federal crop insurance violation according to 7 CFR part 718.
(b) Debtors with SA only must:
(1) Be delinquent due to circumstances beyond their control;
(2) Have acted in good faith.
[72 FR 63316, Nov. 8, 2007, as amended at 89 FR 65044, Aug. 8, 2024]