Payment of recapture
Primary source
Verbatim text below is from the Electronic Code of Federal Regulations (eCFR), a public-domain U.S. government work. Always verify the current version with the eCFR before relying on it for any legal matter.
Full Text
(a) The borrower must pay on the due date or 30 days from Agency notification, whichever is later:
(1) Seventy-five percent of the appreciation in the real estate security if the agreement is triggered within 4 years or less from the date of the write-down; or
(2) Fifty percent of such appreciation if the agreement is triggered more than 4 years from the date of the write-down or when the agreement matures.
(b) If the borrower sells a portion of the security, the borrower must pay shared appreciation only on the portion sold. Shared appreciation on the remaining portion will be due in accordance with paragraph (a) of this section.
(c) The amount of recapture cannot exceed the amount of the debt written off through debt write-down.
[72 FR 63316, Nov. 8, 2007, as amended at 89 FR 65045, Aug. 8, 2024]
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.