---
kind: "section"
citation: "7 C.F.R. § 763.22"
title: "7"
number: "763.22"
heading: "Negligence and negligent servicing."
url: "https://uscodex.org/cfr/7/763.22"
---

# §763.22. Negligence and negligent servicing.

- (a) The Agency may deny a loss claim in whole or in part due to negligence that contributed to the loss claim. This could include, but is not limited to:
  - (1) The escrow and servicing agent failing to seek payment of a missed installment from the buyer within the prescribed timeframe or otherwise does not enforce the terms of the land contract;
  - (2) Losing the collateral to a third party, such as a taxing authority, prior lien holder, etc;
  - (3) Not performing the duties and responsibilities required of the escrow or servicing agent;
  - (4) The seller's failure to disclose environmental issues; or
  - (5) Any other action in violation of the land contract or guarantee agreement that does not terminate the guarantee.
- (b) [Reserved]

## Notes

### Authority

Authority: 5 U.S.C. 501 and 7 U.S.C. 1989.

### Source

Source: 76 FR 75430, Dec. 2, 2011, unless otherwise noted.