7 C.F.R. § 766.201

Current through September 30, 2024
Section 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 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.

7 C.F.R. §766.201

89 FR 65045, 9/25/2024