7 CFR § 772.7 - Leasing minor program loan security.

---
identifier: "/us/cfr/t7/s772.7"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 772.7 - Leasing minor program loan security."
title_number: 7
title_name: "Agriculture"
section_number: "772.7"
section_name: "Leasing minor program loan security."
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: "2026-04-05"
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. 490."
regulatory_source: "68 FR 69949, Dec. 16, 2003, unless otherwise noted."
cfr_part: "772"
---


# 772.7 Leasing minor program loan security.

(a) *Eligibility.* The Agency may consent to the borrower leasing all or a portion of security property for Minor Program loans to a third party when:

(1) Leasing is the only feasible way to continue to operate the enterprise and is a customary practice;

(2) The lease will not interfere with the purpose for which the loan was made;

(3) The borrower retains ultimate responsibility for the operation, maintenance and management of the facility or service for its continued availability and use at reasonable rates and terms;

(4) The lease prohibits amendments to the lease or subleasing arrangements without prior written approval from the Agency;

(5) The lease terms provide that the Agency is a lienholder on the subject property and, as such, the lease is subordinate to the rights and claims of the Agency as lienholder; and

(6) The lease is for less than 3 years and does not constitute a lease/purchase arrangement, unless the transfer and assumption provisions of this subpart are met.

(b) *Application.* The borrower must submit a written request for Agency consent to lease the property.