---
kind: "section"
citation: "7 C.F.R. § 3550.205"
title: "7"
number: "3550.205"
heading: "Delinquency workout agreements."
url: "https://uscodex.org/cfr/7/3550.205"
---

# §3550.205. Delinquency workout agreements.


Borrowers with past due accounts may be offered the opportunity to avoid liquidation by entering into a delinquency workout agreement that specifies a plan for bringing the account current. To receive a delinquency workout agreement, the following requirements apply:

- (a) A borrower who is able to do so will be required to pay the past-due amount in a single payment.
- (b) A borrower who is unable to pay the past-due amount in a single payment must pay monthly all scheduled payments plus an agreed upon additional amount that brings the account current within 2 years or the remaining term of the loan, whichever is shorter.
- (c) If a borrower becomes more than 30 days past due under the terms of a delinquency workout agreement, RHS may cancel the agreement.

## Notes

### Authority

Authority: 5 U.S.C. 301; 42 U.S.C. 1480.

### Source

Source: 61 FR 59779, Nov. 22, 1996, unless otherwise noted.