Shared Appreciation Agreement.

(a) When a SAA is required. The Agency requires a borrower to enter into a SAA with the Agency covering all real estate security when the borrower: (1) Owns any real estate that serves or will serve as loan security; and (2) Accepts a write-down in accordance with § 766.111. (b) When SAA is due. The borrower must repay the calculated amount of shared appreciation after a term of 5 years from the date of the write-down, or earlier if: (1) The borrower sells or conveys all or a portion of the Agency's real estate security, unless real estate is conveyed upon the death of a borrower to a spouse who will continue farming; (2) The borrower repays or satisfies all FLP loans; (3) The borrower ceases farming; or (4) The Agency accelerates the borrower's loans. [72 FR 63316, Nov. 8, 2007, as amended at 89 FR 65045, Aug. 8, 2024]