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12 U.S.C. § 2199 — Disclosure

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12 U.S.C. § 2199 — Disclosure

§ 2199. Disclosure (a) In general In accordance with regulations of the Farm Credit Administration, qualified lenders shall provide to borrowers, for all loans that are not subject to the Truth in Lending Act (15 U.S.C. 1601 et seq.), meaningful and timely disclosure not later than the time of the loan closing, of— (1) the current rate of interest on the loan; (2) in the case of an adjustable or variable rate loan, the amount and frequency by which the interest rate can be increased during the term of the loan or, if there are no such limi- tations, a statement to that effect, and the factors (including the cost of funds, operating expenses, and provision for loan losses) that will be taken into account by the qualified lender in determining adjustments to the in- terest rate; (3) the effect, as shown by a representative example or examples, of any loan origination charges or purchases of stock or participation certificates on the effective rate of interest; (4) any change in the interest rate applicable to the borrower’s loan, and notice to the bor- rower of a change in the interest rate applica- ble to the loan of the borrower may be made within a reasonable time after the effective date of an increase or decrease in the interest rate; (5) except with respect to stock guaranteed under section 2162 of this title, a statement in- dicating that stock that is purchased is at risk; and (6) a statement indicating the various types of loan options available to borrowers, with an explanation of the terms and borrowers’ rights that apply to each type of loan. (b) Differential interest rates A qualified lender offering more than one rate of interest to borrowers shall, at the request of a borrower of a loan— (1) provide a review of the loan t

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Page 1333 TITLE 12—BANKS AND BANKING § 2200 decides to exercise this option, the institution shall provide the requester with a written esti- mate of the costs of handling and mailing the communication as soon as is practicable after receipt of the stockholder’s request to furnish the communication. (Pub. L. 92–181, title IV, § 4.12A, as added Pub. L. 100–233, title IV, § 420, Jan. 6, 1988, 101 Stat. 1653; amended Pub. L. 115–334, title V, § 5411(21), Dec. 20, 2018, 132 Stat. 4681.) Editorial Notes AMENDMENTS 2018—Subsec. (a)(1). Pub. L. 115–334 added par. (1) and struck out former par. (1). Prior to amendment, text read as follows: ‘‘Within 7 days after receipt of a writ- ten request by a stockholder, a bank for cooperatives, Federal land bank association, or production credit as- sociation shall provide a current list of its stockholders to such requesting stockholder.’’ PART C—RIGHTS OF BORROWERS; LOAN RESTRUCTURING Editorial Notes CODIFICATION Pub. L. 100–233, title VIII, § 804(b), Jan. 6, 1988, 101 Stat. 1715, substituted ‘‘Rights of Borrowers; Loan Re- structuring’’ for ‘‘Rights of Applicants’’ as part C head- ing. § 2199. Disclosure (a) In general In accordance with regulations of the Farm Credit Administration, qualified lenders shall provide to borrowers, for all loans that are not subject to the Truth in Lending Act (15 U.S.C. 1601 et seq.), meaningful and timely disclosure not later than the time of the loan closing, of— (1) the current rate of interest on the loan; (2) in the case of an adjustable or variable rate loan, the amount and frequency by which the interest rate can be increased during the term of the loan or, if there are no such limi- tations, a statement to that effect, and the factors (including the cost of funds, operating expenses, and provision for loan losses) that will be taken into account by the qualified lender in determining adjustments to the in- terest rate; (3) the effect, as shown by a representative example or examples, of any loan origination charges or purchases of stock or participation certificates on the effective rate of interest; (4) any change in the interest rate applicable to the borrower’s loan, and notice to the bor- rower of a change in the interest rate applica- ble to the loan of the borrower may be made within a reasonable time after the effective date of an increase or decrease in the interest rate; (5) except with respect to stock guaranteed under section 2162 of this title, a statement in- dicating that stock that is purchased is at risk; and (6) a statement indicating the various types of loan options available to borrowers, with an explanation of the terms and borrowers’ rights that apply to each type of loan. (b) Differential interest rates A qualified lender offering more than one rate of interest to borrowers shall, at the request of a borrower of a loan— (1) provide a review of the loan to determine if the proper interest rate has been estab- lished; (2) explain to the borrower in writing the basis for the interest rate charged; and (3) explain to the borrower in writing how the credit status of the borrower may be im- proved to receive a lower interest rate on the loan. (Pub. L. 92–181, title IV, § 4.13, as added Pub. L. 99–205, title III, § 301(b), Dec. 23, 1985, 99 Stat. 1707; amended Pub. L. 100–233, title I, §§ 103, 109, Jan. 6, 1988, 101 Stat. 1579, 1584; Pub. L. 104–105, title II, § 207, Feb. 10, 1996, 110 Stat. 173.) Editorial Notes REFERENCES IN TEXT The Truth in Lending Act, referred to in subsec. (a), is title I of Pub. L. 90–321, May 29, 1968, 82 Stat. 146, which is classified generally to subchapter I (§ 1601 et seq.) of chapter 41 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 15 and Tables. PRIOR PROVISIONS A prior section 4.13 of Pub. L. 92–181, title IV, Dec. 10, 1971, 85 Stat. 613, was renumbered section 4.13B by Pub. L. 99–205, title III, § 301(a), Dec. 23, 1985, 99 Stat. 1707, and is classified to section 2201 of this title. AMENDMENTS 1996—Subsec. (a)(4). Pub. L. 104–105 inserted before semicolon at end ‘‘, and notice to the borrower of a change in the interest rate applicable to the loan of the borrower may be made within a reasonable time after the effective date of an increase or decrease in the in- terest rate’’. 1988—Pub. L. 100–233, § 109, designated existing provi- sions as subsec. (a), inserted heading, and added subsec. (b). Pub. L. 100–233, § 103, amended section generally, sub- stituting introductory provisions and cls. (1) to (6) for former subsecs. (a) and (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as an Effective Date of 1985 Amendment note under section 2001 of this title. § 2200. Access to documents and information In accordance with regulations of the Farm Credit Administration, qualified lenders shall provide their borrowers, at the time of execu- tion of loans, copies of all documents signed by the borrower and at any time thereafter, on a borrower’s request, copies of all documents signed or delivered by the borrower and at any time, on request, a copy of the institution’s arti- cles of incorporation or charter and bylaws and copies of each appraisal of the borrower’s assets made or used by the qualified lender. (Pub. L. 92–181, title IV, § 4.13A, as added Pub. L. 99–205, title III, § 301(b), Dec. 23, 1985, 99 Stat.

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Federal law — U.S. Code and appendices · legal_authorities

12 U.S.C. § 2199 — Dissolution; voluntary or involuntary liquidation; mergers; receiverships or conservators

**(a) Voluntary liquidation; consent of Farm Credit Administration; rules and regulations; minimization of adverse effect; voluntary merger; mandatory merger on failure to comply or meet obligations** No institution of the System shall go into voluntary liquidation without the consent of the Farm Credit Administration and with such consent may liquidate only in accordance with regulations prescribed by the Farm Credit Administration. In the case of a voluntary liquidation of an association, such regulations, among other things, shall direct the supervising bank to institute such measures as it deems appropriate to minimize the adverse effect of the liquidation on those borrowers whose loans are purchased by or otherwise transferred to another System institution. The Farm Credit Administration Board may require an association to merge with another association whenever it determines, with the concurrence of the board of the supervising bank, that an association has failed to meet its outstanding obligations or failed to conduct its operations in accordance with this chapter. **(b) Appointment of conservator or receiver; grounds; action for removal; stay of actions or proceedings** The Farm Credit Administration Board may appoint a conservator or receiver for any System institution on the determination by the Farm Credit Administration Board that one or more of the following exists, or is occurring, with respect to the institution: (1) insolvency, in that the assets of the institution are less than its obligations to its creditors and others, including its members; (2) substantial dissipation of assets or earnings due to any violation of law, rules, or regulations, or to any unsafe or unsound practice; (3) an unsafe or unsound condition to transact business; (4) willful v

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 1601 — Congressional findings and declaration of purpose

**(a) Informed use of credit** The Congress finds that economic stabilization would be enhanced and the competition among the various financial institutions and other firms engaged in the extension of consumer credit would be strengthened by the informed use of credit. The informed use of credit results from an awareness of the cost thereof by consumers. It is the purpose of this subchapter to assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit card practices. **(b) Terms of personal property leases** The Congress also finds that there has been a recent trend toward leasing automobiles and other durable goods for consumer use as an alternative to installment credit sales and that these leases have been offered without adequate cost disclosures. It is the purpose of this subchapter to assure a meaningful disclosure of the terms of leases of personal property for personal, family, or household purposes so as to enable the lessee to compare more readily the various lease terms available to him, limit balloon payments in consumer leasing, enable comparison of lease terms with credit terms where appropriate, and to assure meaningful and accurate disclosures of lease terms in advertisements.

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 1601 — Congressional findings and declaration of

§ 1601. Congressional findings and declaration of purpose (a) Informed use of credit The Congress finds that economic stabiliza- tion would be enhanced and the competition among the various financial institutions and other firms engaged in the extension of con- sumer credit would be strengthened by the in- formed use of credit. The informed use of credit results from an awareness of the cost thereof by consumers. It is the purpose of this subchapter to assure a meaningful disclosure of credit terms so that the consumer will be able to com- pare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit card practices. (b) Terms of personal property leases The Congress also finds that there has been a recent trend toward leasing automobiles and other durable goods for consumer use as an al- ternative to installment credit sales and that these leases have been offered without adequate cost disclosures. It is the purpose of this sub- chapter to assure a meaningful disclosure of the terms of leases of personal property for per- sonal, family, or household purposes so as to en- able the lessee to compare more readily the var- ious lease terms available to him, limit balloon payments in consumer leasing, enable compari- son of lease terms with credit terms where ap- propriate, and to assure meaningful and accu- rate disclosures of lease terms in advertise- ments. Page 1453 TITLE 15—COMMERCE AND TRADE § 1601 (Pub. L. 90–321, title I, § 102, May 29, 1968, 82 Stat. 146; Pub. L. 93–495, title III, § 302, Oct. 28, 1974, 88 Stat. 1511; Pub. L. 94–240, § 2, Mar. 23, 1976, 90 Stat. 257.) Editorial Notes AMENDMENTS 1976—Pub. L. 94–240 des

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