---
kind: "section"
citation: "7 C.F.R. § 3565.213"
title: "7"
number: "3565.213"
heading: "Geographic distribution."
url: "https://uscodex.org/cfr/7/3565.213"
---

# §3565.213. Geographic distribution.


The Agency may refuse to guarantee a loan in an area where there is undue risk due to a concentration in the market of properties subject to a Agency guaranteed loan. The Agency will consider the credit quality of the loan and overall market conditions in making a determination of undue risk. If any of the Agency guaranteed loans in the market are experiencing vacancy rates in excess of 15% and the vacancy is due to market conditions, the Agency will invoke this provision and not guarantee the loan.


## Notes

### Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

### Source

Source: 63 FR 39458, July 22, 1998, unless otherwise noted.