7 CFR § 766.201 - Shared Appreciation Agreement.

---
identifier: "/us/cfr/t7/s766.201"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 766.201 - Shared Appreciation Agreement."
title_number: 7
title_name: "Agriculture"
section_number: "766.201"
section_name: "Shared Appreciation Agreement."
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: "2026-03-24"
last_updated: "2026-03-24"
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"
---


# 766.201 Shared Appreciation Agreement.

(a) *When a SAA is required.* The Agency requires a borrower to enter into a SAA with the Agency covering all real estate security when the borrower:

(1) Owns any real estate that serves or will serve as loan security; and

(2) Accepts a write-down in accordance with § 766.111.

(b) *When SAA is due.* The borrower must repay the calculated amount of shared appreciation after a term of 5 years from the date of the write-down, or earlier if:

(1) The borrower sells or conveys all or a portion of the Agency's real estate security, unless real estate is conveyed upon the death of a borrower to a spouse who will continue farming;

(2) The borrower repays or satisfies all FLP loans;

(3) The borrower ceases farming; or

(4) The Agency accelerates the borrower's loans.

[72 FR 63316, Nov. 8, 2007, as amended at 89 FR 65045, Aug. 8, 2024]