Unauthorized assistance resulting from submission of inaccurate information by borrower or Agency error.

CFR · 2024-01-01 · US · Title 7

(a) (2) If the borrower is unable to repay the entire amount in a lump sum, the Agency will accept partial repayment of the unauthorized assistance within 90 days of Agency notice to the extent of the borrower's ability to repay. (3) If the borrower is unable to repay all or part of the unauthorized amount, the loan will be converted to a Non-program loan under the following conditions: (i) The borrower did not provide false information; (ii) It is in the interest of the Agency; (iii) The debt will be subject to the interest rate for Non-program loans; (iv) The debt will be serviced as a Non-program loan; (v) The term of the Non-program loan will be as short as feasible, but in no case will exceed: (A) The remaining term of the FLP loan; (B) Twenty-five (25) years for real estate loans; or (C) The life of the security for chattel loans. (b)

official document · source cfr-2024 · id 7:§ 766.253