7 CFR § 3565.56 - Suspension or termination of loan guarantee agreement.
---
identifier: "/us/cfr/t7/s3565.56"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 3565.56 - Suspension or termination of loan guarantee agreement."
title_number: 7
title_name: "Agriculture"
section_number: "3565.56"
section_name: "Suspension or termination of loan guarantee agreement."
chapter_name: "RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "3565"
part_name: "GUARANTEED RURAL RENTAL HOUSING PROGRAM"
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; 42 U.S.C. 1480."
regulatory_source: "63 FR 39458, July 22, 1998, unless otherwise noted."
cfr_part: "3565"
---
# 3565.56 Suspension or termination of loan guarantee agreement.
A guarantee agreement will terminate when one of the following actions occurs: (In accordance with subpart H of this part, use restrictions on the property will remain if the following actions take place prior to the term of the loan and RHS determines the restrictions apply.)
(a) *Voluntary termination.* A lender and borrower voluntarily request the termination of the loan guarantee.
(b) *Agency withdrawal of guarantee.* The Agency withdraws the loan guarantee in the event of fraud, misrepresentation, abuse, negligence, or failure to meet the program requirements.
(c) *Mortgage pay-off.* The loan is paid.
(d) *Settlement of claim.* Final settlement of the claim.