---
kind: "section"
citation: "12 C.F.R. § 617.7105"
title: "12"
number: "617.7105"
heading: "When must a qualified lender disclose the effective interest rate to a borrower?"
url: "https://uscodex.org/cfr/12/617.7105"
---

# §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)](#b-1) of this section apply and the advance is made pursuant to a preexisting contract that specifically provides for future advances.

## Notes

### Source

Source: 69 FR 16459, Mar. 30, 2004, unless otherwise noted.

### Authority

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).

### Source

Source: 69 FR 10907, 10908, Mar. 9, 2004, unless otherwise noted.