C.F.R. » Title 7 » CHAPTER VII—FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE › SUBCHAPTER D—SPECIAL PROGRAMS › PART 766—DIRECT LOAN SERVICING—SPECIAL › Subpart C—Loan Servicing Programs

7 C.F.R. § 766.104

Borrower eligibility requirements

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(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;

(v) Loss of, or reduction in, the borrower or spouse's essential non-farm income; or

(vi) Catastrophic medical expenses for the care of a family member of the borrower or entity member, in the case of an entity borrower.

(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.

[72 FR 63316, Nov. 8, 2007, as amended at 89 FR 65044, Aug. 8, 2024]
Notes of Decisions
Cited in 3 cases, 2017–2018 · leading case: Bean v. Perdue, 316 F. Supp. 3d 220 (D.C. Cir. 2018).
Sort: Relevance Newest Treatment
Bean v. Perdue, 316 F. Supp. 3d 220 (D.C. Cir. 2018). “7 C.F.R. §§ 766.104 (a)(2), (a)(4). If certified mail is not accepted, the notice will be sent by first class mail to the borrower's last known address.”
Bean v. Vilsack (D.D.C. 2017). · cites it 2× “5 See 7 C.F.R. § 766.104 (a). The agency will send loan servicing information via certified mail to any borrower that is “90 days or more past due on loan payments” or to any borrower who “request[s] this information.”
Bean v. Vilsack (D.D.C. 2018). “7 C.F.R. §§ 766.104 (a)(2), (a)(4). 2 If certified mail is not accepted, the notice will be sent by first class mail to the borrower’s last known address.”
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