---
kind: "section"
citation: "7 C.F.R. § 765.202"
title: "7"
number: "765.202"
heading: "Borrower responsibilities."
url: "https://uscodex.org/cfr/7/765.202"
---

# §765.202. Borrower responsibilities.


The borrower must:

- (a) Comply with all provisions of the loan agreements;
  - (1) Non-compliance with the provisions of loan agreements and documents, other than failure to meet scheduled loan repayment installments contained in the promissory note, constitutes non-monetary default on FLP loans by the borrower;
  - (2) Borrower non-compliance will be considered by the Agency when making eligibility determinations for future requests for assistance and may adversely impact such requests;
- (b) Maintain, protect, and account for all security;
- (c) **Pay the following, unless State law requires the Agency to pay—**
  - (1) Fees for executing, filing or recording financing statements, continuation statements or other security instruments; and
  - (2) The cost of lien search reports;
- (d) Pay taxes on property securing FLP loans when they become due;
- (e) Maintain insurance coverage in an amount specified by the Agency;
- (f) Protect the interests of the Agency when a third party brings suit or takes other action that could affect Agency security.

## 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.