7 CFR 770.5
§ 770.5 Loan limitations.
United States · 7 CFR — Agriculture · Status: effective
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- Citation
- 7 CFR 770.5, § 770.5 Loan limitations, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/20119
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Full text
(a) Loan funds may not be used for any land improvement or development purposes, acquisition or repair of buildings or personal property, payment of operating costs, payment of finder's fees, or similar costs, or for any purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agriculture commodity as further established in part 799 of this chapter.
(b) The amount of loan funds used to acquire land may not exceed the market value of the land (excluding the value of any improvements) as determined by a current appraisal.
(c) Loan funds for a land purchase must be disbursed over a period not to exceed 24 months from the date of loan approval.
(d) The sale of assets that are not renewable within the life of the loan will require a reduction in loan principal equal to the value of the assets sold.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.