7 CFR §1951.154

1. (a)Authorization. RD is authorized to execute the necessary releases and satisfactions and return security instruments and related documents to borrowers. Satisfaction and release of security documents takes place:
   1. (1)Upon receipt of payment in full of all amounts owed to the Government including any amounts owed to the loan insurance account, subsidy recapture amounts, all loan advances and/or other charges to the borrower's account;
   2. (2)Upon verification that the amount of payment received is sufficient to pay the full amount owed by the borrower; or
   3. (3)When a compromise or adjustment offer has been accepted and approved by the appropriate Government official in full settlement of the account and all required funds have been paid.
2. (b)[Reserved]
3. (c)Lost note. If the original note is lost RD will give the borrower an affidavit of lost note so that the release or satisfaction may be processed.