A guarantee agreement will terminate when one of the following actions occurs: (In accordance with subpart H of this part, use restrictions on the property will remain if the following actions take place prior to the term of the loan and RHS determines the restrictions apply.)
- (a) Voluntary termination. A lender and borrower voluntarily request the termination of the loan guarantee.
- (b) Agency withdrawal of guarantee. The Agency withdraws the loan guarantee in the event of fraud, misrepresentation, abuse, negligence, or failure to meet the program requirements.
- (c) Mortgage pay-off. The loan is paid.
- (d) Settlement of claim. Final settlement of the claim.