CFR > Title 7 - Agriculture > SUBTITLE B—Regulations of the Department of Agriculture > CHAPTER VII—FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE (parts 700 to 799) > SUBCHAPTER D—SPECIAL PROGRAMS (parts 750 to 786) > PART 764—DIRECT LOAN MAKING > SUBPART C—Requirements for All Direct Program Loans (§764.101 to §764.109-764.150) > 764.106—Exceptions to security requirements.

764.106—Exceptions to security requirements.

Notwithstanding any other provision of this part, the Agency will not take a security interest:
(a) When adequate security is otherwise available and the lien will prevent the applicant from obtaining credit from other sources;
(b) When the property could have significant environmental problems or costs as described in subpart G of 7 CFR part 1940 ;
(c) When the Agency cannot obtain a valid lien;
(d) When the property is the applicant's personal residence and appurtenances and:
(1) They are located on a separate parcel; and
(2) The real estate that serves as security for the FLP loan plus crops and chattels are greater than or equal to 150 percent of the unpaid balance due on the loan;
(e) When the property is subsistence livestock, cash, working capital accounts the applicant uses for the farming operation, retirement accounts, personal vehicles necessary for family living, household contents, or small equipment such as hand tools and lawn mowers; or
(f) On marginal land and timber that secures an outstanding ST loan.