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

---
identifier: "/us/cfr/t12/s617.7105"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 617.7105 - When must a qualified lender disclose the effective interest rate to a borrower?"
title_number: 12
title_name: "Banks and Banking"
section_number: "617.7105"
section_name: "When must a qualified lender disclose the effective interest rate to a borrower?"
chapter_name: "FARM CREDIT ADMINISTRATION"
subchapter_number: "B"
subchapter_name: "FARM CREDIT SYSTEM"
part_number: "617"
part_name: "BORROWER RIGHTS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Secs. 4.13, 4.13A, 4.13B, 4.14, 4.14A, 4.14C, 4.14D, 4.14E, 4.36, 5.9, 5.17 of the Farm Credit Act (12 U.S.C. 2199, 2200, 2201, 2202, 2202a, 2202c, 2202d, 2202e, 2219a, 2243, 2252)."
regulatory_source: "69 FR 10907, 10908, Mar. 9, 2004, unless otherwise noted."
cfr_part: "617"
---


# 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.