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 F—Required Use and Operation of Agency Security (§765.251 to §765.254-765.300) > 765.253—Ceasing to operate security.

765.253—Ceasing to operate security.

If the borrower requests Agency consent to cease operating the security or if the Agency discovers that the borrower is failing to operate the security, the Agency will give consent if:
(a) Such action is in the Agency's best interests;
(b) The borrower is unable to graduate on any program except for CL;
(c) The borrower is not ineligible as a result of disqualification for Federal crop insurance violation according to 7 CFR part 718 ;
(d) The borrower has leased the security according to § 765.252(a)(2); and
(e) Any one of the following conditions is met:
(1) The borrower is involved in the day-to-day operational activities, management decisions, costs and returns of the farming operation, and will continue to reside in the immediate farming community for reasonable management and operation involvement;
(2) The borrower's failure to operate the security is due to age or poor health, and the borrower continues to reside in the immediate farming community for reasonable management and operation involvement; or
(3) The borrower's failure to operate the security is beyond the borrower's control, and the borrower will resume the farming operation within 3 years.

Code of Federal Regulations

[72 FR 63309, Nov. 8, 2007, as amended at 75 FR 54016, Sept. 3, 2010]