---
kind: "section"
citation: "7 C.F.R. § 764.205"
title: "7"
number: "764.205"
heading: "Security requirements."
url: "https://uscodex.org/cfr/7/764.205"
---

# §764.205. Security requirements.


A Down payment loan must:

- (a) Be secured in accordance with [§§ 764.103 through 764.106](/cfr/7/764.103..764.106.md);
- (b) Be secured by a lien on the property being acquired with the loan funds and junior only to the party financing the balance of the purchase price.

## Notes

### Amendments

[72 FR 63298, Nov. 8, 2007, as amended at 73 FR 74345, Dec. 8, 2008; 86 FR 43392, Aug. 9, 2021]

### Authority

Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.

### Source

Source: 72 FR 63298, Nov. 8, 2007, unless otherwise noted.

### Amendments

[72 FR 63298, Nov. 8, 2007, as amended at 73 FR 74345, Dec. 8, 2008; 86 FR 43392, Aug. 9, 2021]