---
kind: "section"
citation: "12 C.F.R. § 617.7135"
title: "12"
number: "617.7135"
heading: "What subsequent disclosures must a qualified lender make to a borrower?"
url: "https://uscodex.org/cfr/12/617.7135"
---

# §617.7135. What subsequent disclosures must a qualified lender make to a borrower?

- (a) **Notice of interest rate change.**
  - (1) A qualified lender must provide written notice to a borrower of any change in interest rate on the borrower's existing loan, containing the following information:
    - (i) The new interest rate on the loan;
    - (ii) The date on which the new rate is effective; and
    - (iii) **The factors used to adjust the interest rate on the loan.**
  - (2) If the borrower's interest rate is directly tied to a widely publicized external index, a qualified lender must provide written notice to the borrower of the rate change either:
    - (i) Within forty-five (45) days after the effective date of the change; or
    - (ii) **As part of the borrower's first regularly scheduled billing statement affected by the rate change.**
  - (3) If the borrower's interest rate is not directly tied to a widely publicized external index, a qualified lender must send written notice to the borrower of the rate change within ten (10) days after the effective date of the change.
- (b) **Notice to adjustable rate loan borrowers with interest rates directly tied to a widely publicized external index.** A qualified lender must provide the written disclosure required by [§ 617.7130(b)(6)](/cfr/12/617.7130.md?p=b-6) to applicable borrowers who were not previously given the disclosure no later than the qualified lender's next regularly scheduled correspondence to those borrowers occurring after April 1, 2010.
- (c) **Notice of increase in stock purchase requirement.** If a qualified lender increases the amount of stock (or participation certificates) a borrower must own during the term of a loan, the lender must send a written notice to the borrower at least ten (10) days prior to the effective date of the increase. The notice must state:
  - (1) The new effective interest rate on the outstanding balance for the remaining term of the borrower's loan;
  - (2) The date on which the new rate is effective; and
  - (3) The reason for the increase in the borrower stock (or participation certificates) purchase requirement.

## 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]