---
kind: "section"
citation: "7 C.F.R. § 766.201"
title: "7"
number: "766.201"
heading: "Shared Appreciation Agreement."
url: "https://uscodex.org/cfr/7/766.201"
---

# §766.201. Shared Appreciation Agreement.

- (a) **When a SAA is required.** The Agency requires a borrower to enter into a SAA with the Agency covering all real estate security when the borrower:
  - (1) Owns any real estate that serves or will serve as loan security; and
  - (2) Accepts a write-down in accordance with [§ 766.111](/cfr/7/766.111.md).
- (b) **When SAA is due.** The borrower must repay the calculated amount of shared appreciation after a term of 5 years from the date of the write-down, or earlier if:
  - (1) The borrower sells or conveys all or a portion of the Agency's real estate security, unless real estate is conveyed upon the death of a borrower to a spouse who will continue farming;
  - (2) The borrower repays or satisfies all FLP loans;
  - (3) The borrower ceases farming; or
  - (4) **The Agency accelerates the borrower's loans.**

## Notes

### Amendments

[72 FR 63316, Nov. 8, 2007, as amended at 89 FR 65045, 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 65045, Aug. 8, 2024]