---
kind: "section"
citation: "7 C.F.R. § 765.51"
title: "7"
number: "765.51"
heading: "Required review."
url: "https://uscodex.org/cfr/7/765.51"
---

# §765.51. Required review.

- (a) At least every 2 years, a borrower with limited resource interest rate loans is required to provide the operation's financial information to the Agency; for the Agency to determine if the borrower can afford to pay a higher interest rate on the loan. The Agency will review the information provided in accordance with [§ 761.105](/cfr/7/761.105.md) of this chapter.
- (b) If the borrower's farm operating plan shows that the debt service margin exceeds 110 percent, the Agency will increase the interest rate on the loans with a limited resource interest rate until:
  - (1) A further increase in the interest rate results in a debt service margin of less than 110 percent; or
  - (2) **The interest rate is equal to the interest rate currently in effect for the type of loan.**
- (c) Except as provided in [paragraph (d)](#d) of this section, the Agency will increase the limited resource interest rate to the current interest rate for the type of loan, if the borrower:
  - (1) Purchases items not planned during the term of the loan;
  - (2) Refuses to submit information the Agency requests for use in reviewing the borrower's financial condition;
  - (3) Ceases farming, as described in [§ 765.253](/cfr/7/765.253.md); or
  - (4) Is ineligible due to disqualification resulting from Federal crop insurance violation according to [7 CFR part 718](/cfr/7/part718.md).
- (d) If the borrower has limited resource interest rate loans that are deferred, the Agency will not change the interest rate during the deferral period.

## Notes

### Amendments

[72 FR 63309, Nov. 8, 2007, as amended at 86 FR 43392, Aug. 9, 2021]

### Authority

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

### Source

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

### Amendments

[72 FR 63309, Nov. 8, 2007, as amended at 86 FR 43392, Aug. 9, 2021]