---
kind: "section"
citation: "12 C.F.R. § 617.7130"
title: "12"
number: "617.7130"
heading: "What initial disclosures must a qualified lender make to a borrower?"
url: "https://uscodex.org/cfr/12/617.7130"
---

# §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)](#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.

## Notes

### Amendments

[69 FR 16459, Mar. 30, 2004, , as amended at 74 FR 67972, Dec. 22, 2009]

### 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.

### Amendments

[69 FR 16459, Mar. 30, 2004, , as amended at 74 FR 67972, Dec. 22, 2009]