§ 766.201 - Shared Appreciation Agreement.  


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  • § 766.201 Shared Appreciation Agreement.

    (a) When a SAA is required. The Agency requires a borrower to enter into a SAA with the Agency covering all real estate security when the borrower:

    (1) Owns any real estate that serves or will serve as loan security; and

    (2) Accepts a writedown in accordance with § 766.111.

    (b) When SAA is due. The borrower must repay the calculated amount of shared appreciation after a term of 5 years from the date of the writedown, or earlier if:

    (1) The borrower sells or conveys all or a portion of the Agency's real estate security, unless real estate is conveyed upon the death of a borrower to a spouse who will continue farming;

    (2) The borrower repays or satisfies all FLP loans;

    (3) The borrower ceases farming; or

    (4) The Agency accelerates the borrower's loans.