{"data":{"id":"us/7-cfr-765.304","jurisdiction":"us","citation":"7 CFR 765.304","heading":"Unapproved disposition.","body":"(a) If a borrower disposes of chattel security without Agency approval, or misuses proceeds, the borrower must:\n(1) Make restitution to the Agency within 30 days of Agency notification; or\n(2) Provide disposition or use information to enable the Agency to consider post-approval within 30 days of Agency notification.\n(b) Failure to cure the first unauthorized disposition in accordance with paragraph (a) of this section, or a second unauthorized disposition, whether or not cured, constitutes a non-monetary default, will be considered by the Agency when making eligibility determinations for future requests for assistance, may adversely impact such requests, and may result in civil or criminal action.","path":["Title 7—Agriculture","Subtitle B—Regulations of the Department of Agriculture","CHAPTER VII—FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE","SUBCHAPTER D—SPECIAL PROGRAMS","PART 765—DIRECT LOAN SERVICING—REGULAR","Subpart G—Disposal of Chattel Security"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-7.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:01Z","sha256":"78e0ce372fd8476832d1644b32cc9e874f3d550aaa0f3833d69a31bed8191d69","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-765.303","next":"us/7-cfr-765.305"},"notice":"GroundRules: Original legal text. Not legal advice."}