---
kind: "section"
citation: "7 C.F.R. § 765.304"
title: "7"
number: "765.304"
heading: "Unapproved disposition."
url: "https://uscodex.org/cfr/7/765.304"
---

# §765.304. Unapproved disposition.

- (a) If a borrower disposes of chattel security without Agency approval, or misuses proceeds, the borrower must:
  - (1) Make restitution to the Agency within 30 days of Agency notification; or
  - (2) Provide disposition or use information to enable the Agency to consider post-approval within 30 days of Agency notification.
- (b) Failure to cure the first unauthorized disposition in accordance with [paragraph (a)](#a) of this section, or a second unauthorized disposition, whether or not cured, constitutes a non-monetary default, will be considered by the Agency when making eligibility determinations for future requests for assistance, may adversely impact such requests, and may result in civil or criminal action.

## 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.