§ 766.113 Buyout of loan at current market value.

(a) Borrower eligibility. A delinquent borrower may buy out the borrower's FLP loans at the current market value of the loan security, including security not in the borrower's possession, and all non-essential assets if: (1) The borrower has not previously received debt forgiveness on any other FLP direct loan; (2) The borrower has acted in good faith; (3) The borrower does not have non-essential assets for which the net recovery value is sufficient to pay the account current; (4) The borrower is unable to develop a feasible plan through primary loan servicing programs or a Conservation Contract, if requested; (5) The present value of the restructured loans is less than the net recovery value of Agency security; (6) The borrower pays the amount required in a lump sum without guaranteed or direct credit from the Agency; and (7) The amount of debt forgiveness does not exceed $300,000. (b) Buyout time frame. After the Agency offers current market value buyout of the loan, the borrower has 90 days from the date of Agency notification to pay that amount.