Servicing shared appreciation agreements.

CFR · 2024-01-01 · US · Title 7

(a) (1) Monitoring the borrower's compliance with the shared appreciation agreement; (2) Notifying the borrower of the amount of recapture due; and, (3) Beginning October 1, 1999, a notice of the agreement's provisions not later than 12 months before the end of the agreement; and (4) Reimbursing the Agency for its pro-rata share of recapture due. (b) (i) On the conveyance of the real estate security (or a portion thereof) by the borrower. (A) If only a portion of the real estate is conveyed, recapture will only be triggered against the portion conveyed. Partial releases will be handled in accordance with § 762.142(b). (B) Transfer of title to the spouse of the borrower on the death of such borrower will not be treated as a conveyance under the agreement. (ii) On repayment of the loan; or (iii) If the borrower ceases farming. (2) Calculating recapture. (i) The amount of recapture will be based on the difference between the value of the security at the time recapture is triggered and the value of the security at the time of writedown, as shown on the shared appreciation agreement. (ii) Security values will be determined through appraisals obtained by the lender and meeting the requirements of § 762.127. (iii) All appraisal fees will be paid by the lender. (iv) The amount of recapture will not exceed the amount of writedown shown on the shared appreciation agreement. (v) If recapture is triggered within 4 years of the date of the shared appreciation agreement, the lender shall r

official document · source cfr-2024 · id 7:§ 762.147