[Code of Federal Regulations] [Title 12, Volume 6] [Revised as of January 1, 2006] From the U.S. Government Printing Office via GPO Access [CITE: 12CFR614.4000] [Page 101-104] TITLE 12--BANKS AND BANKING CHAPTER VI--FARM CREDIT ADMINISTRATION PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents Subpart A_Lending Authorities Sec. 614.4000 Farm Credit Banks. Subpart A_Lending Authorities Sec. 614.4000 Farm Credit Banks. 614.4010 Agricultural credit banks. 614.4020 Banks for cooperatives. 614.4030 Federal land credit associations. 614.4040 Production credit associations. 614.4050 Agricultural credit associations. 614.4055 Federal Agricultural Mortgage Corporation loan participations. 614.4060 Affiliates established pursuant to section 8.5(e)(1) of the Farm Credit Act of 1971. Subpart B_Chartered Territories 614.4070 Loans and chartered territory--Farm Credit Banks, agricultural credit banks, Federal land bank associations, Federal land credit associations, production credit associations, and agricultural credit associations. 614.4080 Loans and chartered territory--banks for cooperatives. Subpart C_Bank/Association Lending Relationship 614.4100 Policies governing lending through Federal land bank associations. 614.4110 Transfer of direct lending authority to Federal land bank associations and agricultural credit associations. 614.4120 Policies governing extensions of credit to direct lender associations and OFIs. 614.4125 Funding and discount relationships between Farm Credit Banks or agricultural credit banks and direct lender associations. 614.4130 Funding and discount relationships between Farm Credit Banks or agricultural credit banks and OFIs. Subpart D_General Loan Policies for Banks and Associations 614.4150 Lending policies and loan underwriting standards. 614.4155 Interest rates. 614.4160 Differential interst rate programs. 614.4165 Young, beginning, and small farmers and ranchers. Subpart E_Loan Terms and Conditions 614.4200 General requirements. 614.4231 Certain seasonal commodity loans to cooperatives. 614.4232 Loans to domestic lessors. 614.4233 International loans. Subpart F_Collateral Evaluation Requirements 614.4240 Collateral definitions. 614.4245 Collateral evaluation policies. 614.4250 Collateral evaluation standards. 614.4255 Independence requirements. 614.4260 Evaluation requirements. 614.4265 Real property evaluations. 614.4266 Personal and intangible property evaluations. 614.4267 Professional association membership; competency. Subpart G [Reserved] [[Page 102]] Subpart H_Loan Purchases and Sales 614.4325 Purchase and sale of interests in loans. 614.4330 Loan participations. 614.4335 Borrower stock requirements. 614.4337 Disclosure to borrowers. Subpart I_Loss-Sharing Agreements 614.4340 General. 614.4341 Financial assistance. 614.4345 Guaranty agreements. Subpart J_Lending and Leasing Limits 614.4350 Definitions. 614.4351 Computation of lending and leasing limit base. 614.4352 Farm Credit Banks and agricultural credit banks. 614.4353 Direct lender associations. 614.4354 Federal land bank associations. 614.4355 Banks for cooperatives. 614.4356 Farm Credit Leasing Services Corporation. 614.4357 Banks for cooperatives look-through notes. 614.4358 Computation of obligations. 614.4359 Attribution rules. 614.4360 Lending and leasing limit violations. 614.4361 Transition. Subparts K-L [Reserved] Subpart M_Loan Approval Requirements 614.4450 General requirements. 614.4460 Loan approval responsibility. 614.4470 Loans subject to bank approval. Subpart N_Loan Servicing Requirements; State Agricultural Loan Mediation Programs; Right of First Refusal 614.4510 General. 614.4511 Federal land bank association compensation. 614.4512 Definitions. 614.4513 Uninsured voluntary and involuntary accounts. Subpart O_Special Lending Programs 614.4525 General. 614.4530 Special loans, production credit associations and agricultural credit associations. Subpart P_Farm Credit Bank and Agricultural Credit Bank Financing of Other Financing Institutions 614.4540 Other financing institution access to Farm Credit Banks and agricultural credit banks for funding, discount, and other similar financial assistance. 614.4550 Place of discount. 614.4560 Requirements for OFI funding relationships. 614.4570 Recourse and security. 614.4580 Limitation on the extension of funding, discount and other similar financial assistance to an OFI. 614.4590 Equitable treatment of OFIs and Farm Credit System associations. 614.4595 Public disclosure about OFIs. 614.4600 Insolvency of an OFI. Subpart Q_Banks for Cooperatives and Agricultural Credit Banks Financing International Trade 614.4700 Financing foreign trade receivables. 614.4710 Bankers acceptance financing. 614.4720 Letters of credit. 614.4800 Guarantees and contracts of suretyship. 614.4810 Standby letters of credit. 614.4900 Foreign exchange. Subpart R_Secondary Market Authorities 614.4910 Basic authorities. Subpart S_Flood Insurance Requirements 614.4920 Purpose and scope. 614.4925 Definitions. 614.4930 Requirement to purchase flood insurance where available. 614.4935 Escrow requirement. 614.4940 Required use of standard flood hazard determination form. 614.4945 Forced placement of flood insurance. 614.4950 Determination fees. 614.4955 Notice of special flood hazards and availability of Federal disaster relief assistance. 614.4960 Notice of servicer's identity. Appendix A to Subpart S of Part 614--Sample Form of Notice of Special Flood Hazards and Availability of Federal Disaster Relief Assistance Authority: 42 U.S.C. 4012a, 4104a, 4104b, 4106, and 4128; secs. 1.3, 1.5, 1.6, 1.7, 1.9, 1.10, 1.11, 2.0, 2.2, 2.3, 2.4, 2.10, 2.12, 2.13, 2.15, 3.0, 3.1, 3.3, 3.7, 3.8, 3.10, 3.20, 3.28, 4.12, 4.12A, 4.13B, 4.14, 4.14A, 4.14C, 4.14D, 4.14E, 4.18, 4.18A, 4.19, 4.25, 4.26, 4.27, 4.28, 4.36, 4.37, 5.9, 5.10, 5.17, 7.0, 7.2, 7.6, 7.8, 7.12, 7.13, 8.0, 8.5 of the Farm Credit Act (12 U.S.C. 2011, 2013, 2014, 2015, 2017, 2018, 2019, 2071, 2073, 2074, 2075, 2091, 2093, 2094, 2097, 2121, 2122, 2124, 2128, 2129, 2131, 2141, 2149, 2183, 2184, 2201, 2202, 2202a, 2202c, 2202d, 2202e, 2206, 2206a, 2207, 2211, 2212, 2213, 2214, 2219a, 2219b, 2243, 2244, 2252, 2279a, 2279a-2, 2279b, 2279c-1, 2279f, 2279f-1, 2279aa, 2279aa-5); sec. 413 of Pub. L. 100-233, 101 Stat. 1568, 1639. [[Page 103]] Source: 55 FR 24880, June 19, 1990, unless otherwise noted. (a) Long-term real estate lending. Except to the extent such authorities are transferred pursuant to section 7.6 of the Act, Farm Credit Banks are authorized, subject to the requirements in Sec. 614.4200 of this part, to make real estate mortgage loans with maturities of not less than 5 years nor more than 40 years and continuing commitments to make such loans. (b) Extensions of credit to Farm Credit direct lender associations. Farm Credit Banks are authorized to make loans and extend other similar financial assistance to associations with direct lending authority and discount for or purchase from such associations, with the association's endorsement or guaranty, any note, draft, and other obligations for loans that have been made in accordance with the provisions of subparts D and E of part 614 of these regulations. Such extensions of credit shall be made pursuant to a written financing agreement meeting the requirements of Sec. 614.4125. (c) Extensions of credit to other financing institutions. Farm Credit Banks are authorized to make loans and extend other similar financial assistance to any national bank, State bank, trust company, agricultural credit corporation, incorporated livestock loan company, savings institution, credit union, or any association of agricultural producers or any corporation engaged in the making of loans to farmers and ranchers or producers or harvesters of aquatic products (collectively, ``other financing institutions''), for purposes eligible for financing by a production credit association in accordance with Sec. 614.4130 and subpart P of this part. Farm Credit Banks are authorized to discount for or purchase from such institutions, with the institution's endorsement or guaranty, notes, drafts, and other obligations or loans made to persons and for purposes eligible for financing by a production credit association, in accordance with Sec. 614.4130 and subpart P of this part. (d) Loan participations. Subject to the requirements of subpart H of part 614, a Farm Credit Bank may enter into loan participation agreements with: (1) Farm Credit banks and associations that are direct lenders and lenders that are not Farm Credit institutions on loans of the type it is authorized to make under title I of the Act; (2) Farm Credit banks and associations that are direct lenders on loans it is not authorized to make, provided the borrower eligibility, membership, term, amount, loan security, and stock or participation certificate requirements of the originating institution are met; and (3) The Federal Agricultural Mortgage Corporation to the extent provided in Sec. 614.4055. (e) Other interests in loans. (1) Subject to the requirements of subpart H of this part, Farm Credit Banks may sell interests in loans only to: (i) Farm Credit System institutions authorized to purchase such interests; (ii) Other lenders that are not Farm Credit System institutions; and (iii) Any certified agricultural mortgage marketing facility, as defined by section 8.0(3) of the Act, for the purpose of pooling and securitizing such loans under title VIII of the Act. (2) Subject to the requirements of subpart H of this part, Farm Credit Banks may purchase interests other than participation interests in loans and nonvoting stock from other Farm Credit System institutions. (3) Farm Credit Banks, in their capacity as certified agricultural mortgage marketing facilities under title VIII of the Act, may purchase interests in loans (other than participation interests authorized in paragraph (d) of this section) from institutions other than Farm Credit System institutions only for the purpose of pooling and securitizing such loans under title VIII of the Act. (f) Residual powers after the transfer of lending authority to an association. After transferring its authority to make and participate in long-term real estate loans to an agricultural credit association or a Federal land credit association pursuant to section 7.6(a) of the Act and subpart E of part 611 of these [[Page 104]] regulations, a Farm Credit Bank retains residual authority to: (1) Enter into loan participation agreements pursuant to paragraph (d) of this section; (2) Purchase or sell other interests in loans in accordance with paragraph (e) of this section; and (3) Make long-term real estate loans in accordance with paragraph (a) of this section in areas of its chartered territory where no active association operates. [55 FR 24880, June 19, 1990, as amended at 57 FR 38246, Aug. 24, 1992; 57 FR 43290, Sept. 18, 1992; 62 FR 51013, Sept. 30, 1997; 63 FR 5723, Feb. 4, 1998; 64 FR 43049, Aug. 9, 1999; 65 FR 24102, Apr. 25, 2000; 67 FR 1285, Jan. 10, 2002]