(a) The Agency may lease real estate inventory property:
(1) To the former owner under the Homestead Protection Program;
(2) To a beginning farmer or socially disadvantaged farmer selected to purchase the property but who was unable to purchase it because of a lack of Agency direct or guaranteed loan funds;
(3) When the Agency is unable to sell the property because of lengthy litigation or appeal processes.
(b) The Agency will lease real estate inventory property in an ``as is'' condition.
(c) The Agency will lease property for:
(1) Homestead protection in accordance with part 766, subpart D, of this chapter.
(2) A maximum of 18 months to a beginning farmer or socially disadvantaged farmer the Agency selected as purchaser when no Agency loan funds are available; or
(3) The shortest possible duration for all other cases subject to the following:
(i) The maximum lease term for such a lease is 12 months.
(ii) The lease is not subject to renewal or extension.
(d) The lessee may pay:
(1) A lump sum;
(2) On an annual installment basis; or
(3) On a crop-share basis, if the lessee is a beginning farmer or socially disadvantaged farmer under paragraph (a) of this section.
(e) The Agency leases real estate inventory property for a market rent amount charged for similar properties in the area.
(f) The Agency may require the lessee to provide a security deposit.
(g) Only leases to a beginning farmer or socially disadvantaged farmer or Homestead Protection Program participant will contain an option to purchase the property. [72 FR 63358, Nov. 8, 2007, as amended at 73 FR 74345, Dec. 8, 2008]