---
kind: "section"
citation: "7 C.F.R. § 766.113"
title: "7"
number: "766.113"
heading: "Buyout of loan at current market value."
url: "https://uscodex.org/cfr/7/766.113"
---

# §766.113. Buyout of loan at current market value.

- (a) **Borrower eligibility.** A delinquent borrower may buy out the borrower's FLP loans at the current market value of the loan security, including security not in the borrower's possession, and all non-essential assets if:
  - (1) The borrower has not previously received debt forgiveness on any other FLP direct loan;
  - (2) The borrower has acted in good faith;
  - (3) The borrower does not have non-essential assets for which the net recovery value is sufficient to pay the account current;
  - (4) The borrower is unable to develop a feasible plan through primary loan servicing programs or a Conservation Contract, if requested;
  - (5) The present value of the restructured loans is less than the net recovery value of Agency security;
  - (6) The borrower pays the amount required in a lump sum without guaranteed or direct credit from the Agency; and
  - (7) **The amount of debt forgiveness does not exceed $300,000.**
- (b) **Buyout time frame.** After the Agency offers current market value buyout of the loan, the borrower has 90 days from the date of Agency notification to pay that amount.

## Notes

### 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.