---
kind: "section"
citation: "7 C.F.R. § 766.204"
title: "7"
number: "766.204"
heading: "Amortization of recapture."
url: "https://uscodex.org/cfr/7/766.204"
---

# §766.204. Amortization of recapture.

- (a) The Agency will amortize the recapture into a Shared Appreciation Payment Agreement provided the borrower:
  - (1) Has not ceased farming and the borrower's account has not been accelerated;
  - (2) Provides a complete application in accordance with [§ 764.51(b)](/cfr/7/764.51.md?p=b), by the recapture due date or within 60 days of Agency notification of the amount of recapture due, whichever is later;
  - (3) Is unable to pay the recapture and cannot obtain funds from any other source;
  - (4) Develops a feasible plan that includes repayment of the shared appreciation amount;
  - (5) Provides a lien on all assets, except those listed in [§ 766.112(b)](/cfr/7/766.112.md?p=b); and
  - (6) **Signs loan agreements and security instruments as required.**
- (b) If the borrower later becomes delinquent or financially distressed, reamortization of the Shared Appreciation Payment Agreement can be considered under subpart C of this part.

## 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.