source:
  type: regulation
  id: usda-7cfr-3555.255
  authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.255 — Borrower actions
    requiring lender approval
  description: '7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program, §3555.255 Borrower actions
    requiring lender approval. Captured section-complete (all subsections verbatim).

    '
obligations:
- id: usda-7cfr-3555.255-a
  canonical_id: usda-7cfr-3555.255-a
  section: 7 CFR §3555.255(a)
  description: 'Borrower actions requiring lender approval — (a): (a) Mineral leases. A lender may consent to the
    lease of mineral rights and subordinate its lien to the lessee''s rights and interests in the mineral activity
    if the security property will remain suitable as a residence, the lender''s security interest will not be adversely
    affected, and Rural Develop…'
  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 § 3555.255
    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) Mineral leases. A lender may consent to the lease of mineral rights and subordinate its
      lien to the lessee's rights and interests in the mineral activity if the security property will remain suitable
      as a residence, the lender's security interest will not be adversely affected, and Rural Development's environmental
      requirements are met. Concurrence by Rural Development prior to consenting to the lease of mineral rights
      is required, unless otherwise provided by the Agency. Subordination of guaranteed loans to a mineral lease
      does not entitle the leaseholder to any proceeds from the sale of the security property. (1) If the proposed
      activity is likely to decrease the value of the security property, the lender may consent to the lease only
      if the borrower assigns 100 percent of the income from the lease to the lender to be applied to reduce the
      principal balance, and the total rent to be paid is at least equal to the estimated decrease in the market
      value of the security property. (2) If the proposed activity is not likely to decrease the value of the security
      property, the lender may consent to the lease if the borrower agrees to use any damage compensation received
      from the lessee to repair damage to the site or dwelling, or to assign it to the lender to be applied to reduce
      the principal balance.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.255 subsection (a) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.255-b
  canonical_id: usda-7cfr-3555.255-b
  section: 7 CFR §3555.255(b)
  description: 'Borrower actions requiring lender approval — (b): (b) Partial release of security property. A lender
    may consent to transactions affecting a security property, such as selling or exchanging security property or
    granting of a right-of-way across the security property, and grant a partial release, provided that the following
    conditions are met. (1) T…'
  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 § 3555.255
    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) Partial release of security property. A lender may consent to transactions affecting a
      security property, such as selling or exchanging security property or granting of a right-of-way across the
      security property, and grant a partial release, provided that the following conditions are met. (1) The borrower
      will receive adequate compensation, and either make a reduction to the principal balance or make improvements
      to the security property, in order to maintain the current loan-to-value ratio for the guaranteed loan.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.255 subsection (b) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.255-i
  canonical_id: usda-7cfr-3555.255-i
  section: 7 CFR §3555.255(i)
  description: 'Borrower actions requiring lender approval — (i): (i) For sale of security property, the borrower
    must receive cash in an amount equal to or greater than the value of the security property being sold or interests
    being conveyed. (ii) For exchange of security property, the borrower must receive another parcel of property
    with value equal to or great…'
  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 § 3555.255
    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) For sale of security property, the borrower must receive cash in an amount equal to or
      greater than the value of the security property being sold or interests being conveyed. (ii) For exchange
      of security property, the borrower must receive another parcel of property with value equal to or greater
      than that being disposed of. (iii) For granting an easement or right-of-way, the borrower must receive benefits
      that are equal to or greater than the value of the security property being disposed of or interests being
      conveyed. (2) An appraisal of the security property will be conducted by the lender if the most current appraisal
      is more than 1 year old or if it does not reflect current market value. (3) The security property, after the
      transaction is completed, will continue to be an adequate, safe, and sanitary dwelling. (4) Repayment of the
      guaranteed debt will not be jeopardized. (5) When exchange of all or part of the security property is involved,
      title clearance will be obtained before release of the existing security. (6) Proceeds from the sale of a
      portion of the security property, granting an easement or right-of-way, damage compensation, and all similar
      transactions requiring the lender''s consent, will be used in the following order:'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.255 subsection (i) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.255-i
  canonical_id: usda-7cfr-3555.255-i
  section: 7 CFR §3555.255(i)
  description: 'Borrower actions requiring lender approval — (i): (i) To pay customary and reasonable costs related
    to the transaction that must be paid by the borrower. (ii) To be applied on a prior lien debt, if any. (iii)
    To be applied to the guaranteed indebtedness or used for improvements to the security property consistent with
    the purposes and limitations a…'
  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 § 3555.255
    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) To pay customary and reasonable costs related to the transaction that must be paid by the
      borrower. (ii) To be applied on a prior lien debt, if any. (iii) To be applied to the guaranteed indebtedness
      or used for improvements to the security property consistent with the purposes and limitations applicable
      for use of guaranteed loan funds. The lender must ensure that the proceeds are used as planned. (7) The lender
      will seek Agency concurrence, unless otherwise provided by the Agency, by submitting documentation supporting
      the borrower's reason for request, the proposed use of the land with supporting plans, specifications, cost
      estimates, surveys, disclosures of restrictions, legal description modification, title clearance related to
      the transaction request, as applicable, and any other documents necessary for the Agency to make a determination.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.255 subsection (i) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
