GroundRules
7 CFR 766.203: Payment of recapture.
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) The borrower must pay on the due date or 30 days from Agency notification, whichever is later:
(1) Seventy-five percent of the appreciation in the real estate security if the agreement is triggered within 4 years or less from the date of the write-down; or
(2) Fifty percent of such appreciation if the agreement is triggered more than 4 years from the date of the write-down or when the agreement matures.
(b) If the borrower sells a portion of the security, the borrower must pay shared appreciation only on the portion sold. Shared appreciation on the remaining portion will be due in accordance with paragraph (a) of this section.
(c) The amount of recapture cannot exceed the amount of the debt written off through debt write-down.
Collected 2026-08-27T02:24:01Z. Source file · JSON