7 CFR § 769.105 - Authorized loan purposes.

---
identifier: "/us/cfr/t7/s769.105"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 769.105 - Authorized loan purposes."
title_number: 7
title_name: "Agriculture"
section_number: "769.105"
section_name: "Authorized loan purposes."
chapter_name: "FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE"
subchapter_number: "D"
subchapter_name: "SPECIAL PROGRAMS"
part_number: "769"
part_name: "FARM LOAN PROGRAMS RELENDING PROGRAMS"
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 25 U.S.C. 488."
regulatory_source: "80 FR 74970, Dec. 1, 2015, unless otherwise noted."
cfr_part: "769"
---


# 769.105 Authorized loan purposes.

(a) *Intermediary lender.* Agency HFIL loan funds must be placed in the intermediary's HFIL revolving fund and used by the intermediary to provide direct loans to eligible ultimate recipients.

(b) *Ultimate recipient.* Loans from the intermediary lender to the ultimate recipient using the HFIL revolving fund:

(1) Must be used to acquire and consolidate at least 50 percent of the highly fractionated Indian land parcel and interests in the land. The interests include rights-of-way, water rights, easements, and other appurtenances that would normally pass with the land or are necessary for the proposed operation of the land located within the tribe's reservation;

(2) Must finance land that will be used for agricultural purposes during the term of the loan;

(3) May be used to pay costs incidental to land acquisition, including, but not limited to, title clearance, legal services, archeological or land surveys, and loan closing; and

(4) May be used to pay for the costs of any appraisal conducted in accordance with this part.