Common use of Requirements and Terms Clause in Contracts

Requirements and Terms. (1) The term of a Net Recovery Buyout Recap- ture Agreement is 10 years. Net Recov- ery Buyout Recapture Agreements are secured by a lien on the former bor- rower’s real estate. (2) If the former borrower sells or conveys real estate within the 10-year term, the former borrower must repay the Agency the lesser of: (i) The market value of the real es- xxxx parcel at the time of sale or con- veyance, as determined by an Agency appraisal, minus the portion of the re- covery value of the real estate paid to the Agency in the buyout; (ii) The market value of the real es- xxxx parcel at the time of the sale or conveyance, as determined by an Agen- cy appraisal, minus: (A) The unpaid balance of prior liens at the time of the sale or conveyance; and (B) The net recovery value of the real estate the borrower paid to the Agency in the buyout if this amount has not been accounted for as a prior lien; (iii) The total amount of the FLP debt the Agency wrote off for loans se- cured by real estate. (3) If the former borrower does not pay the amount due, the Agency will liquidate the Net Recovery Buyout ac- count in accordance with subpart H of this part.

Appears in 6 contracts

Samples: Farm Service Agency Agreement, Farm Service Agency Agreement, Farm Service Agency Agreement

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