7 CFR §766.113

1. (a)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:
   1. (1)The borrower has not previously received debt forgiveness on any other FLP direct loan;
   2. (2)The borrower has acted in good faith;
   3. (3)The borrower does not have non-essential assets for which the net recovery value is sufficient to pay the account current;
   4. (4)The borrower is unable to develop a feasible plan through primary loan servicing programs or a Conservation Contract, if requested;
   5. (5)The present value of the restructured loans is less than the net recovery value of Agency security;
   6. (6)The borrower pays the amount required in a lump sum without guaranteed or direct credit from the Agency; and
   7. (7)The amount of debt forgiveness does not exceed $300,000.
2. (b)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.