7 CFR 765.207

§ 765.207 Conditions for severance agreements.

United States · 7 CFR — Agriculture · Status: effective

Cite this

Citation: 7 CFR 765.207, § 765.207 Conditions for severance agreements, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/19928
Permanent ID: ys:prov:19928@1
SHA-256: a21c5a11db6821248dd8fb33be37366b93e878337e3b4c598cd6ffc414b862cb

The hash is SHA-256 of this version's text, with every run of whitespace collapsed to a single space and the ends trimmed. The ID always leads back here, and checking it says whether the text you cited is still the current version.

Full text

For loans secured by real estate, a borrower may request Agency consent to a severance agreement or similar instrument so that future chattel acquired by the borrower will not become part of the real estate securing the FLP debt. The Agency will consent to severance agreements if all of the following conditions are met: (a) The financing arrangements are in the financial interest of the Agency and the borrower; (b) The transaction will not adversely affect the Agency's security position; (c) The borrower is unable to graduate on any program except for CL; (d) The transaction will not jeopardize the borrower's ability to pay all outstanding debts to the Agency and other creditors; and (e) The property acquired is consistent with authorized loan purposes.

Legislative history

This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.