(a) Borrower eligibility. A delinquent borrower may buy out the borrower's FLP loans at the current market value of the loan security, including security not in the borrower's possession, and all non-essential assets if:

1. (1) The borrower has not previously received debt forgiveness on any other FLP direct loan;
2. (2) The borrower has acted in good faith;
3. (3) The borrower does not have non-essential assets for which the net recovery value is sufficient to pay the account current;
4. (4) The borrower is unable to develop a feasible plan through primary loan servicing programs or a Conservation Contract, if requested;
5. (5) The present value of the restructured loans is less than the net recovery value of Agency security;
6. (6) The borrower pays the amount required in a lump sum without guaranteed or direct credit from the Agency; and
7. (7) The amount of debt forgiveness does not exceed $300,000.