[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: 12CFR617.7300]



[Page 207]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 617_BORROWER RIGHTS--Table of Contents

 

      Subpart D_Actions on Applications; Review of Credit Decisions

 

Sec. 617.7300  When acting on a loan application, what are the notice 

requirements and review rights?





    Each qualified lender must make its decision on a loan application 

as quickly as possible. The qualified lender must provide prompt written 

notice of its decision to the applicant. The qualified lender is 

required to notify all primary applicants. If a loan application has 

more than one primary applicant, the qualified lender may send the 

original notice to the applicant designated to receive notices and may 

send copies to all other applicants. If the qualified lender makes an 

adverse credit decision on a loan application, the notice must include:

    (a) The specific reasons for the qualified lender's decision;

    (b) A statement that the applicant may request a review of the 

decision;

    (c) A statement that a written request for review must be made 

within 30 days after the applicant receives the qualified lender's 

notice; and

    (d) A brief explanation of the process for seeking review of the 

decision, including the independent collateral evaluation review 

process, whom to contact for access to information, and the applicant's 

right to appear in person before the credit review committee (CRC).