§766.104. Borrower eligibility requirements.
7 C.F.R. § 766.104
A borrower must meet the following eligibility requirements to be considered for primary loan servicing:
The delinquency or financial distress is the result of reduced repayment ability due to one of the following circumstances beyond the borrower's control:
Illness, injury, or death of a borrower or other individual who operates the farm;
Natural disaster, adverse weather, disease, or insect damage which caused severe loss of agricultural production;
Widespread economic conditions such as low commodity prices;
Damage or destruction of property essential to the farming operation;
Loss of, or reduction in, the borrower or spouse's essential non-farm income; or
Catastrophic medical expenses for the care of a family member of the borrower or entity member, in the case of an entity borrower.
The borrower does not have non-essential assets for which the net recovery value is sufficient to resolve the financial distress or pay the delinquent portion of the loan.
If the borrower is in non-monetary default, the borrower will resolve the non-monetary default prior to closing the servicing action.
The borrower has acted in good faith.
Financially distressed or current borrowers requesting servicing must pay a portion of the interest due on the loans.
The borrower must not be ineligible due to disqualification resulting from Federal crop insurance violation according to 7 CFR part 718.
Debtors with SA only must—
Be delinquent due to circumstances beyond their control;
Have acted in good faith.
Notes, amendments, and revision history
Amendments
[72 FR 63316, Nov. 8, 2007, as amended at 89 FR 65044, Aug. 8, 2024]
Authority
Authority: 5 U.S.C. 301, 7 U.S.C. 1989, and 1981d(c).
Source
Source: 72 FR 63316, Nov. 8, 2007, unless otherwise noted.
Amendments
[72 FR 63316, Nov. 8, 2007, as amended at 89 FR 65044, Aug. 8, 2024]