7 CFR § 763.22 - Negligence and negligent servicing.

---
identifier: "/us/cfr/t7/s763.22"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 763.22 - Negligence and negligent servicing."
title_number: 7
title_name: "Agriculture"
section_number: "763.22"
section_name: "Negligence and negligent servicing."
chapter_name: "FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE"
subchapter_number: "D"
subchapter_name: "SPECIAL PROGRAMS"
part_number: "763"
part_name: "LAND CONTRACT GUARANTEE PROGRAM"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 501 and 7 U.S.C. 1989."
regulatory_source: "76 FR 75430, Dec. 2, 2011, unless otherwise noted."
cfr_part: "763"
---


# 763.22 Negligence and negligent servicing.

(a) The Agency may deny a loss claim in whole or in part due to negligence that contributed to the loss claim. This could include, but is not limited to:

(1) The escrow and servicing agent failing to seek payment of a missed installment from the buyer within the prescribed timeframe or otherwise does not enforce the terms of the land contract;

(2) Losing the collateral to a third party, such as a taxing authority, prior lien holder, *etc;*

(3) Not performing the duties and responsibilities required of the escrow or servicing agent;

(4) The seller's failure to disclose environmental issues; or

(5) Any other action in violation of the land contract or guarantee agreement that does not terminate the guarantee.

(b) [Reserved]