---
kind: "section"
citation: "7 C.F.R. § 766.354"
title: "7"
number: "766.354"
heading: "Voluntary conveyance of chattel."
url: "https://uscodex.org/cfr/7/766.354"
---

# §766.354. Voluntary conveyance of chattel.

- (a) **Requirements for conveying chattel.** The borrower must supply the Agency with the following:
  - (1) An Agency application form;
  - (2) **A current financial statement.** If the borrower is an entity, all entity members must provide current financial statements;
  - (3) Information on present and future income and potential earning ability;
  - (4) A bill of sale including each item and titles to all vehicles and equipment, as applicable;
  - (5) A resolution approved by the governing body that authorizes the conveyance in the case of an entity borrower;
  - (6) Complete debt settlement application in accordance with [part 761](/cfr/7/part761.md), [subpart F](/cfr/7/subpartF.md) of this chapter before, or in conjunction with, the voluntary conveyance offer if the value of the property to be conveyed is less than the FLP debt.
- (b) **Conditions for conveying chattel.** The Agency will accept conveyance of chattel only if:
  - (1) The borrower has made every possible effort to sell the property voluntarily;
  - (2) The borrower can convey the chattel free of other liens;
  - (3) The conveyance is in the Agency's financial interest;
  - (4) The borrower conveys all chattel securing the FLP loan; and
  - (5) The borrower has received prior notification of the availability of loan servicing in accordance with subpart C of this part.
- (c) **Charging and crediting the borrower's account.**
  - (1) The Agency will charge the borrower's account for all recoverable costs incurred in connection with the conveyance.
  - (2) The Agency will credit the borrower's account in the amount of the market value of the chattel.

## Notes

### Amendments

[72 FR 63316, Nov. 8, 2007, as amended at 85 FR 36713, June 17, 2020]

### 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 85 FR 36713, June 17, 2020]