---
kind: "section"
citation: "7 C.F.R. § 1956.105"
title: "7"
number: "1956.105"
heading: "Definitions."
url: "https://uscodex.org/cfr/7/1956.105"
---

# §1956.105. Definitions.

- (a) **Settlement.** The compromise, adjustment, cancellation, or chargeoff of a debt owed to Rural Development. The term “settlement” is used for convenience in referring to compromise, adjustment, cancellation, or chargeoff actions, individually or collectively.
- (b) **Compromise.** The satisfaction of a debt, including a release of liability, by the acceptance of a lump-sum payment of less than the total amount owed on the debt.
- (c) **Adjustment.** The satisfaction of a debt, including a release of liability, when acceptance is conditioned upon completion of payment of the adjusted amount at a specific future time or times, with or without the payment of any consideration when the adjustment offer is approved. An adjustment is not a final settlement until all payments under the adjustment agreement have been made.
- (d) **Cancellation.** The final discharge of a debt with a release of liability.
- (e) **Chargeoff.** To write off a debt and terminate all servicing activity without a release of liability. This is not a final discharge of the debt, but rather a decision upon the part of the agency to remove the debt from agency receivables.
- (f) **Debtor.** The borrower of loan funds under any of Rural Development programs specified in [§ 1956.101](/cfr/7/1956.101.md).
- (g) **Security.** All that serves as collateral for Rural Development loan(s), including, but not limited to, revenues, tax levies, municipal bonds, and real and chattel property.
- (h) **Servicing official.** The Rural Development official who is primarily responsible for servicing the account.
- (i) **United States Attorney.** An attorney for the United States Department of Justice.
- (j) **Independent Qualified Fee Appraiser.** An individual who is a designated member of the American Institute of Real Estate Appraisers, Society of Real Estate Appraisers, or an equivalent organization, requiring appraisal education, testing, and experience.

## Notes

### Amendments

[53 FR 13100, Apr. 21, 1988, as amended at 54 FR 47510, Nov. 15, 1989; 66 FR 1569, Jan. 9, 2001; 80 FR 9901, Feb. 24, 2015]

### Source

Source: 53 FR 13100, Apr. 21, 1988, unless otherwise noted.

### Authority

Authority: 5 U.S.C. 301; and 7 U.S.C. 1989.

### Source

Source: 51 FR 45434, Dec. 18, 1986, unless otherwise noted.

### Amendments

[53 FR 13100, Apr. 21, 1988, as amended at 54 FR 47510, Nov. 15, 1989; 66 FR 1569, Jan. 9, 2001; 80 FR 9901, Feb. 24, 2015]