---
kind: "section"
citation: "7 C.F.R. § 766.203"
title: "7"
number: "766.203"
heading: "Payment of recapture."
url: "https://uscodex.org/cfr/7/766.203"
---

# §766.203. Payment of recapture.

- (a) The borrower must pay on the due date or 30 days from Agency notification, whichever is later:
  - (1) Seventy-five percent of the appreciation in the real estate security if the agreement is triggered within 4 years or less from the date of the write-down; or
  - (2) Fifty percent of such appreciation if the agreement is triggered more than 4 years from the date of the write-down or when the agreement matures.
- (b) If the borrower sells a portion of the security, the borrower must pay shared appreciation only on the portion sold. Shared appreciation on the remaining portion will be due in accordance with [paragraph (a)](#a) of this section.
- (c) **The amount of recapture cannot exceed the amount of the debt written off through debt write-down.**

## 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]