Federal regulations · Through 2026-08-25 · Newer source version available

12 CFR 617.7105: When must a qualified lender disclose the effective interest rate to a borrower?

(a) Disclosure to prospective borrowers. A qualified lender must provide written effective interest rate disclosure for each loan no later than the time of loan closing.
(b) Disclosure to existing borrowers. (1) A qualified lender must provide a new effective interest rate disclosure to an existing borrower on or before the date:
(i) The borrower executes a new promissory note or other comparable evidence of indebtedness;
(ii) The borrower purchases additional stock or participation certificates as a condition of obtaining new funds from the qualified lender; or
(iii) The borrower pays an additional loan origination charge to the qualified lender as a condition of obtaining new funds.
(2) A qualified lender is not required to provide a new effective interest rate disclosure when it advances new funds to an existing borrower if none of the conditions of paragraph (b)(1) of this section apply and the advance is made pursuant to a preexisting contract that specifically provides for future advances.

Where this section sits in the code

Title 12—Banks and Banking
CHAPTER VI—FARM CREDIT ADMINISTRATION
SUBCHAPTER B—FARM CREDIT SYSTEM
PART 617—BORROWER RIGHTS
Subpart B—Disclosure of Effective Interest Rates

(a) Disclosure to prospective borrowers. A qualified lender must provide written effective interest rate disclosure for each loan no later than the time of loan closing.

(b) Disclosure to existing borrowers. (1) A qualified lender must provide a new effective interest rate disclosure to an existing borrower on or before the date:

(i) The borrower executes a new promissory note or other comparable evidence of indebtedness;

(ii) The borrower purchases additional stock or participation certificates as a condition of obtaining new funds from the qualified lender; or

(iii) The borrower pays an additional loan origination charge to the qualified lender as a condition of obtaining new funds.

(2) A qualified lender is not required to provide a new effective interest rate disclosure when it advances new funds to an existing borrower if none of the conditions of paragraph (b)(1) of this section apply and the advance is made pursuant to a preexisting contract that specifically provides for future advances.

Collected 2026-08-27T02:24:16Z. Source file · JSON

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