7 CFR §766.104

1. (a)A borrower must meet the following eligibility requirements to be considered for primary loan servicing:
   1. (1)The delinquency or financial distress is the result of reduced repayment ability due to one of the following circumstances beyond the borrower's control:
      1. (i)Illness, injury, or death of a borrower or other individual who operates the farm;
      2. (ii)Natural disaster, adverse weather, disease, or insect damage which caused severe loss of agricultural production;
      3. (iii)Widespread economic conditions such as low commodity prices;
      4. (iv)Damage or destruction of property essential to the farming operation;
      5. (v)Loss of, or reduction in, the borrower or spouse's essential non-farm income; or
      6. (vi)Catastrophic medical expenses for the care of a family member of the borrower or entity member, in the case of an entity borrower.
   2. (2)The borrower does not have non-essential assets for which the net recovery value is sufficient to resolve the financial distress or pay the delinquent portion of the loan.
   3. (3)If the borrower is in non-monetary default, the borrower will resolve the non-monetary default prior to closing the servicing action.
   4. (4)The borrower has acted in good faith.
   5. (5)Financially distressed or current borrowers requesting servicing must pay a portion of the interest due on the loans.
   6. (6)The borrower must not be ineligible due to disqualification resulting from Federal crop insurance violation according to 7 CFR part 718.
2. (b)Debtors with SA only must:
   1. (1)Be delinquent due to circumstances beyond their control;
   2. (2)Have acted in good faith.