[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: 12CFR614.4337]



[Page 125]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

                   Subpart H_Loan Purchases and Sales

 

Sec. 614.4337  Disclosure to borrowers.



    When a loan or an interest in a loan other than a participation 

interest is sold with servicing rights, the disclosure shall be made to 

the borrower in accordance with this section:

    (a) The selling institution shall disclose to the borrower at least 

10 days prior to the borrower's next payment date;

    (1) The name, address, and telephone number of the purchasing 

institution;

    (2) The name and address of the party to whom payment is to be made;

    (3) A description of the impact of the sale on statutory borrower 

rights after the sale;

    (4) Any terms in the agreement that would permit a purchaser to 

change the terms or conditions of the loan.

    (b) A Farm Credit System institution that purchases a loan or a non-

participation interest therein shall not take any servicing action that 

adversely affects the borrower until it ensures that disclosure has been 

made to the borrower of:

    (1) The name, address, and telephone number of the purchasing 

institution; and

    (2) The address where the payment should be sent.