[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: 12CFR614.4070]



[Page 109]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

                     Subpart B_Chartered Territories

 

Sec. 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.



    (a) A bank or association chartered under title I or II of the Act 

may finance eligible borrower operations conducted wholly within its 

chartered territory regardless of the residence of the applicant.

    (b) A bank or association operating under title I or II of the Act 

may finance the operations of a borrower headquartered and operating in 

its territory even though the operation financed is conducted partially 

outside its territory, provided notice is given to all Farm Credit 

institutions providing similar credit in the territory(ies) in which the 

operations being financed are conducted. A bank or association operating 

under title I or II of the Act may lend to a borrower headquartered 

outside its territory to finance eligible borrower operations that are 

conducted partially within its territory and partially outside its 

territory only if the concurrence of Farm Credit institutions providing 

similar credit for the territories in which the operations are conducted 

is obtained.

    (c) A bank or association chartered under title I or II of the Act 

may finance eligible borrower operations conducted wholly outside its 

chartered territory, provided such loans are authorized by the policies 

of the bank and/or association involved, do not constitute a significant 

shift in loan volume away from the bank or association's assigned 

territory, and are made and administered in accordance with paragraphs 

(c)(1) and (c)(2) of this section.

    (1) If a loan is made to an eligible borrower whose operations are 

conducted wholly outside the chartered territory of the lending bank or 

association, the lending institution shall obtain concurrence of all 

Farm Credit institutions providing similar credit in the territory(ies) 

in which the operation being financed is conducted.

    (2) Loans to finance eligible borrower operations conducted wholly 

outside a bank's or association's territory shall be appropriately 

designated by the bank or association to provide adequate identification 

of the number and volume of such loans, which shall be monitored by the 

bank or association.



[55 FR 24882, June 19, 1990]