---
kind: "section"
citation: "7 C.F.R. § 3560.610"
title: "7"
number: "3560.610"
heading: "Security."
url: "https://uscodex.org/cfr/7/3560.610"
---

# §3560.610. Security.

- (a) Security instruments must meet the requirements established under [§ 3560.560](/cfr/7/3560.560.md).
- (b) When feasible, the on-farm labor housing will be located on a tract of land that is surveyed such that, for security purposes, it is considered separate and distinct from the farm. The security for the loan must include a lien on the tract of land where the on-farm labor housing is located and the security must have adequate value to protect the Federal government's interest. The Agency will seek a first or parity lien position on Agency-financed property in all instances, however, the Agency may accept a junior lien position if the Federal government's interests are adequately secured.
- (c) The Agency will determine the value of the security for the loan in accordance with [7 CFR part 1922](/cfr/7/part1922.md), [subpart B](/cfr/7/subpartB.md) if the farm is used as security or in accordance with section 502 of the Housing Act of 1949, if only the on-farm labor housing and related land is used for security.
- (d) If necessary to provide adequate security for the loan, the Agency may require that any household furnishings purchased with loan funds also be secured.
- (e) Personal liability and recourse will be required of all borrowers, including the individual members, stockholders or partners of an association of farmers, family farm corporations or partnerships, respectively.

## Notes

### Authority

Authority: 42 U.S.C. 1480.

### Source

Source: 69 FR 69106, Nov. 26, 2004, unless otherwise noted.