Borrower eligibility requirements.

CFR · 2024-01-01 · US · Title 7

(a) A borrower must meet the following eligibility requirements to be considered for primary loan servicing: (1) The delinquency or financial distress is the result of reduced repayment ability due to one of the following circumstances beyond the borrower's control: (i) Illness, injury, or death of a borrower or other individual who operates the farm; (ii) Natural disaster, adverse weather, disease, or insect damage which caused severe loss of agricultural production; (iii) Widespread economic conditions such as low commodity prices; (iv) Damage or destruction of property essential to the farming operation; or (v) Loss of, or reduction in, the borrower or spouse's essential non-farm income. (2) The borrower does not have non-essential assets for which the net recovery value is sufficient to resolve the financial distress or pay the delinquent portion of the loan. (3) If the borrower is in non-monetary default, the borrower will resolve the non-monetary default prior to closing the servicing action. (4) The borrower has acted in good faith. (5) Financially distressed or current borrowers requesting servicing must pay a portion of the interest due on the loans. (6) The borrower must not be ineligible due to disqualification resulting from Federal crop insurance violation according to 7 CFR part 718. (b) Debtors with SA only must: (1) Be delinquent due to circumstances beyond their control; (2) Have acted in good faith.

official document · source cfr-2024 · id 7:§ 766.104