7 CFR § 772.16 - Liquidation.

---
identifier: "/us/cfr/t7/s772.16"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 772.16 - Liquidation."
title_number: 7
title_name: "Agriculture"
section_number: "772.16"
section_name: "Liquidation."
chapter_name: "FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE"
subchapter_number: "D"
subchapter_name: "SPECIAL PROGRAMS"
part_number: "772"
part_name: "SERVICING MINOR PROGRAM LOANS"
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 25 U.S.C. 490."
regulatory_source: "68 FR 69949, Dec. 16, 2003, unless otherwise noted."
cfr_part: "772"
---


# 772.16 Liquidation.

When the Agency determines that continued servicing will not accomplish the objectives of the loan and the delinquency or financial distress cannot be cured by the options in § 772.13, or the loan is in non-monetary default, the borrower will be encouraged to dispose of the Agency security voluntarily through sale or transfer and assumption in accordance with this part. If such a transfer or voluntary sale is not carried out, the loan will be liquidated according to 7 CFR part 766. For AMP loans, appeal rights under 7 CFR part 11 are provided in the notice of acceleration. For IMP loans, appeal rights must be exhausted before acceleration, and the notice of acceleration is not appealable.

[68 FR 69949, Dec. 16, 2003, as amended at 72 FR 64121, Nov. 15, 2007]