[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: 12CFR614.4361]



[Page 131]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

                  Subpart J_Lending and Leasing Limits

 

Sec. 614.4361  Transition.



    (a) A loan (not including a commitment) made or attributed to a 

borrower prior to the effective date of this subpart, which does not 

comply with the limits contained in this subpart, will not be considered 

a violation of the lending and leasing limits during the existing 

contract terms of such loans. A new loan must conform with the rules set 

forth in this subpart. A new loan includes but is not limited to:

    (1) Funds advanced in excess of existing commitment;

    (2) A different borrower is substituted for a borrower who is 

subsequently released; or

    (3) An additional person becomes an obligor on the loan.

    (b) A commitment made prior to the effective date of these 

regulations which exceeds the lending and leasing limit may be funded to 

the full extent of the legal commitment. Any advances that exceed the 

lending and leasing limit are subject to the provisions prescribed in 

Sec. 614.4360.



[58 FR 40321, July 28, 1993. Redesignated and amended at 64 FR 34517, 

34518, June 28, 1999]



Subparts K-L [Reserved]