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7 CFR § 1951.702 - Definitions.

---
identifier: "/us/cfr/t7/s1951.702"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1951.702 - Definitions."
title_number: 7
title_name: "Agriculture"
section_number: "1951.702"
section_name: "Definitions."
chapter_name: "RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE SERVICE, AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE"
subchapter_number: "H"
subchapter_name: "PROGRAM REGULATIONS"
part_number: "1951"
part_name: "SERVICING AND COLLECTIONS"
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 1932 note; 7 U.S.C. 1989; 31 U.S.C. 3716; 42 U.S.C. 1480."
cfr_part: "1951"
---

# 1951.702 Definitions.

As used in this subpart, the following definitions apply:

*Active borrower.* A borrower who has an outstanding account in the records of the Office of the Deputy Chief Financial Officer (ODCFO), including collection-only or an unsatisfied account balance where a voluntary conveyance was accepted without release from liability of foreclosure did not satisfy the indebtedness.

*Assistance.* Finance assistance in the form of a loan, grant, or subsidy received.

*Debt instrument.* Used as a collective term to include promissory note, assumption agreement, grant agreement, or bond.

*False information.* Information, known to be incorrect, provided with the intent to obtain benefits which would not have been obtainable based on correct information.

*Inaccurate information.* Incorrect information provided inadvertently without intent to obtain benefits fraudulently.

*Inactive borrower.* A former borrower whose loan(s) has been paid in full or assumed by another party(ies) and who does not have an outstanding account in the records of the ODCFO.

*Recipient.* “Recipient” refers to an individual or entity that received a loan, or portion of a loan, an interest subsidy, a grant, or a portion of a grant which was unauthorized.

*Rural Development.* A mission area within the U.S. Department of Agriculture consisting of the Office of the Under Secretary for Rural Development, Office of Community Development, Rural Business-Cooperative Service, Rural Housing Service, and Rural Utilities Service and their successors.

*Unauthorized assistance.* Any loan, interest subsidy, grant, or portion thereof received by a recipient for which there was no regulatory authorization or for which the recipient was not eligible. Interest subsidy includes subsidy benefits received because a loan was closed at a lower interest rate than that to which the recipient was entitled, whether the incorrect interest rate was selected erroneously by the approval official or the documents were prepared in error.