GroundRules
7 CFR 766.201: Shared Appreciation Agreement.
Where this section sits in the code
- Title 7—Agriculture
- Subtitle B—Regulations of the Department of Agriculture
- CHAPTER VII—FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
- SUBCHAPTER D—SPECIAL PROGRAMS
- PART 766—DIRECT LOAN SERVICING—SPECIAL
- Subpart E—Servicing Shared Appreciation Agreements and Net Recovery Buyout Agreements
(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 write-down 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 write-down, 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.
Collected 2026-08-27T02:24:01Z. Source file · JSON