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) > 766.204—Amortization of recapture.

766.204—Amortization of recapture.

(a) The Agency will amortize the recapture into a Shared Appreciation Payment Agreement provided the borrower:
(1) Has not ceased farming and the borrower's account has not been accelerated;
(2) Provides a complete application in accordance with § 764.51(b), by the recapture due date or within 60 days of Agency notification of the amount of recapture due, whichever is later;
(3) Is unable to pay the recapture and cannot obtain funds from any other source;
(4) Develops a feasible plan that includes repayment of the shared appreciation amount;
(5) Provides a lien on all assets, except those listed in § 766.112(b); and
(6) Signs loan agreements and security instruments as required.
(b) If the borrower later becomes delinquent or financially distressed, reamortization of the Shared Appreciation Payment Agreement can be considered under subpart C of this part.