[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: 12CFR614.4513]



[Page 134]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

Subpart N_Loan Servicing Requirements; State Agricultural Loan Mediation 

                    Programs; Right of First Refusal

 

Sec. 614.4513  Uninsured voluntary and involuntary accounts.



    (a) Borrowers may make voluntary advance payments on their loans or, 

under agreement with a System institution, may make voluntary advance 

conditional payments intended to be applied to future maturities. The 

monies in the advance conditional payment accounts may be available for 

return to the borrower in lieu of increasing his loan. System 

institutions may pay interest on advance conditional payments for the 

time the funds are held unapplied at a rate not to exceed the rate 

charged on the related loan(s). System institutions shall hold any 

advance conditional payments received in accordance with this section in 

voluntary advance payment accounts.

    (b) System institutions may establish involuntary payment accounts 

including, but not limited to, funds held for the borrower, such as loan 

proceeds to be disbursed for which the borrower is obligated; the 

unapplied insurance proceeds arising from any insured loss; and total 

insurance premiums and applicable taxes collected in advance in 

connection with any loan.



[53 FR 35454, Sept. 14, 1988]