Requirements to obtain Agency consent.

CFR · 2024-01-01 · US · Title 7

The borrower must obtain prior consent from the Agency for any transactions affecting the real estate security, including, but not limited to, sale or exchange of security, a right-of-way across security, and a partial release. The Agency may consent to such transactions provided the conditions in this section are met. (a) (1) The transaction will enhance the objectives for which the FLP loan or loans were made; (2) The transaction will not jeopardize the borrower's ability to repay the FLP loan, or is necessary to place the borrower's farming operation on a sound basis; (3) Except for releases in paragraph (f) of this section, the amount received by the borrower for the security being disposed of, or the rights being granted, is not less than the market value and will be remitted to the lienholders in the order of lien priority; (4) The transaction must not interfere with the borrower's farming operation; (5) The market value of the remaining security is adequate to secure the FLP loans, or if the market value of the security before the transaction was inadequate to fully secure the FLP loans, the Agency's equity in the security is not diminished; (6) The environmental requirements of part 799 of this chapter must be met; (7) The borrower cannot graduate to other credit on any program except for CL; (8) The borrower must not be ineligible due to disqualification resulting from Federal crop insurance violation according to 7 CFR part 718; and (9) The disposition of real estat

official document · source cfr-2024 · id 7:§ 765.351