7 CFR § 766.113 - Buyout of loan at current market value.
---
identifier: "/us/cfr/t7/s766.113"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 766.113 - Buyout of loan at current market value."
title_number: 7
title_name: "Agriculture"
section_number: "766.113"
section_name: "Buyout of loan at current market value."
chapter_name: "FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE"
subchapter_number: "D"
subchapter_name: "SPECIAL PROGRAMS"
part_number: "766"
part_name: "DIRECT LOAN SERVICING—SPECIAL"
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. 301, 7 U.S.C. 1989, and 1981d(c)."
regulatory_source: "72 FR 63316, Nov. 8, 2007, unless otherwise noted."
cfr_part: "766"
---
# 766.113 Buyout of loan at current market value.
(a) *Borrower eligibility.* A delinquent borrower may buy out the borrower's FLP loans at the current market value of the loan security, including security not in the borrower's possession, and all non-essential assets if:
(1) The borrower has not previously received debt forgiveness on any other FLP direct loan;
(2) The borrower has acted in good faith;
(3) The borrower does not have non-essential assets for which the net recovery value is sufficient to pay the account current;
(4) The borrower is unable to develop a feasible plan through primary loan servicing programs or a Conservation Contract, if requested;
(5) The present value of the restructured loans is less than the net recovery value of Agency security;
(6) The borrower pays the amount required in a lump sum without guaranteed or direct credit from the Agency; and
(7) The amount of debt forgiveness does not exceed $300,000.
(b) *Buyout time frame.* After the Agency offers current market value buyout of the loan, the borrower has 90 days from the date of Agency notification to pay that amount.