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 765—DIRECT LOAN SERVICING—REGULAR > SUBPART E—Protecting the Agency's Security Interest (§765.201 to §765.208-765.250) > 765.202—Borrower responsibilities.

765.202—Borrower responsibilities.

The borrower must:
(a) Comply with all provisions of the loan agreements;
(1) Non-compliance with the provisions of loan agreements and documents, other than failure to meet scheduled loan repayment installments contained in the promissory note, constitutes non-monetary default on FLP loans by the borrower;
(2) Borrower non-compliance will be considered by the Agency when making eligibility determinations for future requests for assistance and may adversely impact such requests;
(b) Maintain, protect, and account for all security;
(c) Pay the following, unless State law requires the Agency to pay:
(1) Fees for executing, filing or recording financing statements, continuation statements or other security instruments; and
(2) The cost of lien search reports;
(d) Pay taxes on property securing FLP loans when they become due;
(e) Maintain insurance coverage in an amount specified by the Agency;
(f) Protect the interests of the Agency when a third party brings suit or takes other action that could affect Agency security.