[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: 12CFR614.4155]



[Page 112]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

       Subpart D_General Loan Policies for Banks and Associations

 

Sec. 614.4155  Interest rates.



    Loans made by each bank and direct lender association shall bear 

interest at a rate or rates as may be determined by the institution 

board. The board shall set interest rates or approve individual interest 

rate changes either on a case-by-case basis or pursuant to an interest 

rate plan within which management may establish rates. Any interest rate 

plan shall set loan-pricing policies and objectives, provide guidance 

regarding the circumstances under which management may adjust rates, and 

provide the upper and lower limits on management authority. Any interest 

rate plan adopted shall be reviewed on a continuing basis by the board, 

as well as in conjunction with its review and approval of the 

institution's operational and strategic business plan.



[62 FR 66818, Dec. 22, 1997]