---
kind: "section"
citation: "7 C.F.R. § 3565.56"
title: "7"
number: "3565.56"
heading: "Suspension or termination of loan guarantee agreement."
url: "https://uscodex.org/cfr/7/3565.56"
---

# §3565.56. Suspension or termination of loan guarantee agreement.


A guarantee agreement will terminate when one of the following actions occurs: (In accordance with [subpart H](/cfr/7/subpartH.md) of this part, use restrictions on the property will remain if the following actions take place prior to the term of the loan and RHS determines the restrictions apply.)

- (a) **Voluntary termination.** A lender and borrower voluntarily request the termination of the loan guarantee.
- (b) **Agency withdrawal of guarantee.** The Agency withdraws the loan guarantee in the event of fraud, misrepresentation, abuse, negligence, or failure to meet the program requirements.
- (c) **Mortgage pay-off.** The loan is paid.
- (d) **Settlement of claim.** Final settlement of the claim.

## 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.