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 766—DIRECT LOAN SERVICING—SPECIAL > SUBPART C—Loan Servicing Programs (§766.101 to §766.116-766.150) > 766.113—Buyout of loan at current market value.

766.113—Buyout of loan at current market value.

(a) Borrower eligibility. A delinquent borrower may buy out the borrower's FLP loans at the current market value of the loan security, including security not in the borrower's possession, and all non-essential assets if:
(1) The borrower has not previously received debt forgiveness on any other FLP direct loan;
(2) The borrower has acted in good faith;
(3) The borrower does not have non-essential assets for which the net recovery value is sufficient to pay the account current;
(4) The borrower is unable to develop a feasible plan through primary loan servicing programs or a Conservation Contract, if requested;
(5) The present value of the restructured loans is less than the net recovery value of Agency security;
(6) The borrower pays the amount required in a lump sum without guaranteed or direct credit from the Agency; and
(7) The amount of debt forgiveness does not exceed $300,000.
(b) Buyout time frame. After the Agency offers current market value buyout of the loan, the borrower has 90 days from the date of Agency notification to pay that amount.