Rolnictwo i finanse · 20.03.1996

Loan Policies and Operations

The Farm Credit Administration (FCA), by the Farm Credit Administration Board (Board), adopts amendments to the regulations governing disclosure of loan information. The FCA removes the requirement that Farm Credit institutions give borrowers 10 days prior notification of a change in the interest rate on their variable rate loans and replaces it with a 10-day post notification for interest rate changes for administered rate loans and a 30-day notice if the loan is tied to an external index. The current requirement to notify borrowers of a decrease in interest rate no later than on the day of the decrease has been changed to the same standard as an increase. This action would reduce the burden on institutions of a delay in interest rate changes while still providing borrowers with timely notice of a change. The final regulation also deletes reference to eligible borrower stock as a technical amendment.