source:
  type: regulation
  id: usda-7cfr-3555.256
  authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.256 — Transfer and assumptions
  description: '7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program, §3555.256 Transfer and assumptions.
    Captured section-complete (all subsections verbatim).

    '
obligations:
- id: usda-7cfr-3555.256-a
  canonical_id: usda-7cfr-3555.256-a
  section: 7 CFR §3555.256(a)
  description: 'Transfer and assumptions — (a): (a) Transfer without assumption. (1) The lender must notify Rural
    Development if the borrower transfers the security property and the transferee does not assume the debt. (2)
    Except as described in paragraph (d) of this section, if a security property is transferred with the lender''s
    knowledge witho…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.256
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (a) Transfer without assumption. (1) The lender must notify Rural Development if the borrower
      transfers the security property and the transferee does not assume the debt. (2) Except as described in paragraph
      (d) of this section, if a security property is transferred with the lender's knowledge without assumption
      of the debt, Rural Development will void the guarantee.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.256 subsection (a) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.256-b
  canonical_id: usda-7cfr-3555.256-b
  section: 7 CFR §3555.256(b)
  description: 'Transfer and assumptions — (b): (b) Transfer with assumption. (1) The lender must obtain Agency
    approval before consenting to a transfer with an assumption of the outstanding debt. (2) Rural Development may
    approve a transfer with an assumption of the outstanding debt if the following conditions are met:'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.256
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(b) Transfer with assumption. (1) The lender must obtain Agency approval before consenting
      to a transfer with an assumption of the outstanding debt. (2) Rural Development may approve a transfer with
      an assumption of the outstanding debt if the following conditions are met:'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.256 subsection (b) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.256-i
  canonical_id: usda-7cfr-3555.256-i
  section: 7 CFR §3555.256(i)
  description: 'Transfer and assumptions — (i): (i) The transferee must assume the entire outstanding debt and acquire
    all property securing the guaranteed loan balance; however, the transferor must remain personally liable. The
    transferor must pay any recapture as a result of interest subsidy granted, if applicable, owed at the time of
    the trans…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.256
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (i) The transferee must assume the entire outstanding debt and acquire all property securing
      the guaranteed loan balance; however, the transferor must remain personally liable. The transferor must pay
      any recapture as a result of interest subsidy granted, if applicable, owed at the time of the transfer and
      assumption. (ii) The transferee must meet the eligibility requirements described in subpart D of this part.
      (iii) The property must meet the site and dwelling requirements described in subpart E of this part, or be
      brought to those standards prior to the transfer. Guaranteed loans secured by properties located in areas
      that have ceased to be rural may be assumed notwithstanding the fact that the property is located in a non-rural
      area. (iv) The priority of the existing lien securing the guaranteed loan must be maintained or improved.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.256 subsection (i) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.256-v
  canonical_id: usda-7cfr-3555.256-v
  section: 7 CFR §3555.256(v)
  description: 'Transfer and assumptions — (v): (v) Any new rates and terms must not exceed the rates and terms
    allowed for new loans under this part, and the interest rate must not exceed the interest rate on the initial
    loan. (vi) A new guarantee fee, calculated based on the remaining principal balance, must be paid to Rural Development
    in acco…'
  type: dont
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.256
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (v) Any new rates and terms must not exceed the rates and terms allowed for new loans under
      this part, and the interest rate must not exceed the interest rate on the initial loan. (vi) A new guarantee
      fee, calculated based on the remaining principal balance, must be paid to Rural Development in accordance
      with &#xA7; 3555.107(g). (vii) If additional financing is required to complete the transfer and assumption
      or to make needed repairs, Rural Development may approve a supplemental guaranteed loan provided adequate
      security exists. (viii) The lender must verify and document their permanent file in accordance with subpart
      C of this part. (ix) A written request supported by the lender demonstrating the applicant's credit worthiness,
      income eligibility and underwriting analysis must be submitted to the Agency for approval of a transfer and
      assumption.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.256 subsection (v) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.256-x
  canonical_id: usda-7cfr-3555.256-x
  section: 7 CFR §3555.256(x)
  description: 'Transfer and assumptions — (x): (x) The lender may close the loan in accordance with &#xA7; 3555.107.'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.256
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (x) The lender may close the loan in accordance with &#xA7; 3555.107.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.256 subsection (x) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.256-c
  canonical_id: usda-7cfr-3555.256-c
  section: 7 CFR §3555.256(c)
  description: 'Transfer and assumptions — (c): (c) Transfer without approval. If a lender becomes aware that a
    borrower has transferred a property without approval, the lender must take one of the following actions: (1)
    Notify Rural Development and continue the loan without the guarantee; or (2) Obtain Agency approval for the
    transfer with assum…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.256
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(c) Transfer without approval. If a lender becomes aware that a borrower has transferred a
      property without approval, the lender must take one of the following actions: (1) Notify Rural Development
      and continue the loan without the guarantee; or (2) Obtain Agency approval for the transfer with assumption;
      or (3) Liquidate the guaranteed loan and submit a claim for any loss.'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.256 subsection (c) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.256-d
  canonical_id: usda-7cfr-3555.256-d
  section: 7 CFR §3555.256(d)
  description: 'Transfer and assumptions — (d): (d) Transfer without triggering the due-on-sale clause. (1) The
    following types of transfers do not trigger due-on-sale clauses in security instruments:'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.256
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(d) Transfer without triggering the due-on-sale clause. (1) The following types of transfers
      do not trigger due-on-sale clauses in security instruments:'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.256 subsection (d) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.256-i
  canonical_id: usda-7cfr-3555.256-i
  section: 7 CFR §3555.256(i)
  description: 'Transfer and assumptions — (i): (i) A transfer from the borrower to a spouse or children not resulting
    from the death of the borrower; (ii) A transfer to a relative, joint tenant, or tenant by the entirety resulting
    from the death of the borrower; (iii) A transfer to a spouse or ex-spouse resulting from a divorce decree, legal
    sep…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.256
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (i) A transfer from the borrower to a spouse or children not resulting from the death of the
      borrower; (ii) A transfer to a relative, joint tenant, or tenant by the entirety resulting from the death
      of the borrower; (iii) A transfer to a spouse or ex-spouse resulting from a divorce decree, legal separation
      agreement, or property settlement agreement; (iv) A transfer to a person other than a deceased borrower's
      spouse who wishes to assume the loan for the benefit of persons who were dependent on the deceased borrower
      at the time of death, if the dwelling will be occupied by one or more persons who were dependent on the borrower
      at the time of death, and there is a reasonable prospect of repayment; or
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.256 subsection (i) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.256-v
  canonical_id: usda-7cfr-3555.256-v
  section: 7 CFR §3555.256(v)
  description: 'Transfer and assumptions — (v): (v) A transfer into an inter vivos trust in which the borrower does
    not transfer rights of occupancy in the property. (2) When a transferee obtains a property with a guaranteed
    loan through a transfer that does not trigger the due-on-sale clause:'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.256
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(v) A transfer into an inter vivos trust in which the borrower does not transfer rights of
      occupancy in the property. (2) When a transferee obtains a property with a guaranteed loan through a transfer
      that does not trigger the due-on-sale clause:'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.256 subsection (v) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.256-i
  canonical_id: usda-7cfr-3555.256-i
  section: 7 CFR §3555.256(i)
  description: 'Transfer and assumptions — (i): (i) The lender will notify Rural Development of the transfer; (ii)
    Rural Development will continue with the guarantee, whether or not the transferee assumes the guaranteed loan;
    (iii) The transferee may assume the guaranteed loan on the rates and terms contained in the promissory note.
    If the accoun…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.256
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (i) The lender will notify Rural Development of the transfer; (ii) Rural Development will continue
      with the guarantee, whether or not the transferee assumes the guaranteed loan; (iii) The transferee may assume
      the guaranteed loan on the rates and terms contained in the promissory note. If the account is past due at
      the time an assumption agreement is executed, the loan may be re-amortized to bring the account current; (iv)
      The transferee may assume the guaranteed loan under new rates and terms if the transferee applies and is eligible.
      (3) Any subsequent transfer of title, except upon the death of the inheritor or between inheritors to consolidate
      title, will trigger the due-on-sale clause. [78 FR 73941, Dec. 9, 2013, as amended at 81 FR 6429, Feb. 8,
      2016]
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.256 subsection (i) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
