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 E—Servicing Shared Appreciation Agreements and Net Recovery Buyout Agreements (§766.201 to §766.207-766.250) > 766.201—Shared Appreciation Agreement.

766.201—Shared Appreciation Agreement.

(a) When a SAA is required. The Agency requires a borrower to enter into a SAA with the Agency covering all real estate security when the borrower:
(1) Owns any real estate that serves or will serve as loan security; and
(2) Accepts a writedown in accordance with § 766.111.
(b) When SAA is due. The borrower must repay the calculated amount of shared appreciation after a term of 5 years from the date of the writedown, or earlier if:
(1) The borrower sells or conveys all or a portion of the Agency's real estate security, unless real estate is conveyed upon the death of a borrower to a spouse who will continue farming;
(2) The borrower repays or satisfies all FLP loans;
(3) The borrower ceases farming; or
(4) The Agency accelerates the borrower's loans.