{"data":{"id":"us/12-cfr-617.7130","jurisdiction":"us","citation":"12 CFR 617.7130","heading":"What initial disclosures must a qualified lender make to a borrower?","body":"(a) Required disclosures—in general. A qualified lender must disclose in writing:\n(1) The interest rate on the loan;\n(2) The effective interest rate of the loan;\n(3) The amount of stock or participation certificates that a borrower is required to purchase in connection with the loan and included in the calculation of the effective interest rate of the loan;\n(4) All loan origination charges included in the effective interest rate;\n(5) That stock or participation certificates that borrowers are required to purchase are at risk and may only be retired at the discretion of the board of the institution; and\n(6) The various types of loan options available to borrowers, with an explanation of the terms and borrower rights that apply to each type of loan.\n(b) Adjustable rate loans. A qualified lender must provide the following information for adjustable rate loans in addition to the requirements of paragraph (a) of this section:\n(1) The circumstances under which the rate can be adjusted;\n(2) How much the rate can be adjusted at any one time and how much the rate can be adjusted during the term of the loan;\n(3) How often the rate can be adjusted;\n(4) Any limitations on the amount or frequency of adjustments;\n(5) The specific factors that the qualified lender may take into account in making adjustments to the interest rate on the loan; and\n(6) If the borrower's interest rate is directly tied to a widely publicized external index:\n(i) How and where the borrower may obtain information on changes to the index; and\n(ii) When the qualified lender will provide written notice of changes to the borrower's interest rate.","path":["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"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-12.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:16Z","sha256":"9f7e7f3835c322516833172456873f5bf92578c2caf3c93b6030925647452c70","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-617.7125","next":"us/12-cfr-617.7135"},"notice":"GroundRules: Original legal text. Not legal advice."}