---
kind: "section"
citation: "7 C.F.R. § 765.1"
title: "7"
number: "765.1"
heading: "Introduction."
url: "https://uscodex.org/cfr/7/765.1"
---

# §765.1. Introduction.

- (a) **Purpose.** This part describes the policies for servicing direct FLP loans, except for borrowers who are delinquent, financially distressed, or otherwise in default on their loan.
- (b) **Servicing actions.** Servicing actions described in this part include:
  - (1) Limited resource reviews;
  - (2) Graduation to commercial credit;
  - (3) Application of payments;
  - (4) Maintaining and disposing of security;
  - (5) Transfer of security and assumption of debt; and
  - (6) **Servicing accounts of deceased borrowers.**
- (c) **Loans covered.** The Agency services direct FLP loans under the policies contained in this part. This part is not applicable to Non-program loans, except where noted.

## Notes

### Authority

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

### Source

Source: 72 FR 63309, Nov. 8, 2007, unless otherwise noted.