12 CFR § 617.7130 - What initial disclosures must a qualified lender make to a borrower?
---
identifier: "/us/cfr/t12/s617.7130"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 617.7130 - What initial disclosures must a qualified lender make to a borrower?"
title_number: 12
title_name: "Banks and Banking"
section_number: "617.7130"
section_name: "What initial disclosures must a qualified lender make 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"
---
# 617.7130 What initial disclosures must a qualified lender make to a borrower?
(a) *Required disclosures—in general.* A qualified lender must disclose in writing:
(1) The interest rate on the loan;
(2) The effective interest rate of the loan;
(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;
(4) All loan origination charges included in the effective interest rate;
(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
(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.
(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:
(1) The circumstances under which the rate can be adjusted;
(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;
(3) How often the rate can be adjusted;
(4) Any limitations on the amount or frequency of adjustments;
(5) The specific factors that the qualified lender may take into account in making adjustments to the interest rate on the loan; and
(6) If the borrower's interest rate is directly tied to a widely publicized external index:
(i) How and where the borrower may obtain information on changes to the index; and
(ii) When the qualified lender will provide written notice of changes to the borrower's interest rate.
[69 FR 16459, Mar. 30, 2004, , as amended at 74 FR 67972, Dec. 22, 2009]