1956.105—Definitions.
(a) Settlement.
The compromise, adjustment, cancellation, or chargeoff of a debt owed to FmHA or its successor agency under Public Law 103-354. The term “settlement” is used for convenience in referring to compromise, adjustment, cancellation, or chargeoff actions, individually or collectively.
(b) Compromise.
The satisfaction of a debt, including a release of liability, by the acceptance of a lump-sum payment of less than the total amount owed on the debt.
(c) Adjustment.
The satisfaction of a debt, including a release of liability, when acceptance is conditioned upon completion of payment of the adjusted amount at a specific future time or times, with or without the payment of any consideration when the adjustment offer is approved. An adjustment is not a final settlement until all payments under the adjustment agreement have been made.
(e) Chargeoff.
To write off a debt and terminate all servicing activity without a release of liability. This is not a final discharge of the debt, but rather a decision upon the part of the agency to remove the debt from agency receivables.
(f) Debtor.
The borrower of loan funds under any of the FmHA or its successor agency under Public Law 103-354 programs specified in § 1956.101 of this subpart.
(g) Security.
All that serves as collateral for the FmHA or its successor agency under Public Law 103-354 loan(s), including, but not limited to, revenues, tax levies, municipal bonds, and real and chattel property.
(h) Servicing official.
The FmHA or its successor agency under Public Law 103-354 official who is primarily responsible for servicing the account.
(j) Independent Qualified Fee Appraiser.
An individual who is a designated member of the American Institute of Real Estate Appraisers, Society of Real Estate Appraisers, or an equivalent organization, requiring appraisal education, testing, and experience.