[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: 12CFR614.4232]



[Page 115]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

                   Subpart E_Loan Terms and Conditions

 

Sec. 614.4232  Loans to domestic lessors.



    Loans and financial assistance extended by banks for cooperatives 

and agricultural credit banks to domestic lessors to finance equipment 

or facilities leased by a stockholder of the bank shall be subject to 

the following terms and conditions:

    (a) The term of the loan shall not be longer than the total period 

of the lease;

    (b) The contract between the lessor and lessee shall establish that 

the leased assets are effectively under the control of the lessee and 

that such control shall continue in effect for essentially all of the 

term of the lease;

    (c) The lessee must hold at least one share of stock or one 

participation certificate; and

    (d) The leased equipment and facilities must be primarily for use in 

the lessee's operations in the United States.



[55 FR 24884, June 19, 1990, as amended at 64 FR 34517, June 28, 1999]