---
kind: "section"
citation: "7 C.F.R. § 772.16"
title: "7"
number: "772.16"
heading: "Liquidation."
url: "https://uscodex.org/cfr/7/772.16"
---

# §772.16. Liquidation.


When the Agency determines that continued servicing will not accomplish the objectives of the loan and the delinquency or financial distress cannot be cured by the options in [§ 772.13](/cfr/7/772.13.md), or the loan is in non-monetary default, the borrower will be encouraged to dispose of the Agency security voluntarily through sale or transfer and assumption in accordance with this part. If such a transfer or voluntary sale is not carried out, the loan will be liquidated according to [7 CFR part 766](/cfr/7/part766.md). For AMP loans, appeal rights under [7 CFR part 11](/cfr/7/part11.md) are provided in the notice of acceleration. For IMP loans, appeal rights must be exhausted before acceleration, and the notice of acceleration is not appealable.


## Notes

### Amendments

[68 FR 69949, Dec. 16, 2003, as amended at 72 FR 64121, Nov. 15, 2007]

### Authority

Authority: 5 U.S.C. 301, 7 U.S.C. 1989, and 25 U.S.C. 490.

### Source

Source: 68 FR 69949, Dec. 16, 2003, unless otherwise noted.

### Amendments

[68 FR 69949, Dec. 16, 2003, as amended at 72 FR 64121, Nov. 15, 2007]