[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: 12CFR617.7430]



[Page 212]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 617_BORROWER RIGHTS--Table of Contents

 

    Subpart E_Distressed Loan Restructuring; State Agricultural Loan 

                           Mediation Programs

 

Sec. 617.7430  Are institutions required to participate in state 

agricultural loan mediation programs?



    (a) If initiated by a borrower, System institutions must participate 

in state mediation programs certified under section 501 of the 

Agricultural Credit Act of 1987 and present and explore debt 

restructuring proposals advanced in the course of such mediation. If 

provided in the certified program, System institutions may initiate 

mediation at any time.

    (b) System institutions must cooperate in good faith with requests 

for information or analysis of information made in the course of 

mediation under any loan mediation program.

    (c) No System institution may make a loan secured by a mortgage or 

lien on agricultural property to a borrower on the condition that the 

borrower waive any right under the agricultural loan mediation program 

of any state.

    (d) A state mediation may proceed at the same time as the loan 

restructuring process of Sec. 617.7415 or at any other appropriate 

time.