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§ 766.113 - Buyout of loan at current market value.

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Borrower eligibility. A delinquent borrower may buy out the borrower's FLP loans at the current market value of the loan security, including security not in the borrower's possession, and all non-essential assets if:

The borrower has not previously received debt forgiveness on any other FLP direct loan;

The borrower has acted in good faith;

The borrower does not have non-essential assets for which the net recovery value is sufficient to pay the account current;

The borrower is unable to develop a feasible plan through primary loan servicing programs or a Conservation Contract, if requested;

The present value of the restructured loans is less than the net recovery value of Agency security;

The borrower pays the amount required in a lump sum without guaranteed or direct credit from the Agency; and

The amount of debt forgiveness does not exceed $300,000.

Buyout time frame. After the Agency offers current market value buyout of the loan, the borrower has 90 days from the date of Agency notification to pay that amount.

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§ 766.112 - Additional security for restructured loans.
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§ 766.114 - State-certified mediation or voluntary meeting of creditors.