12 CFR 617.7110
§ 617.7110 How should a qualified lender disclose the cost of borrower stock or participation certificates?
United States · 12 CFR — Banks and Banking · Status: effective
Cite this
- Citation
- 12 CFR 617.7110, § 617.7110 How should a qualified lender disclose the cost of borrower stock or participation certificates?, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/47927
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Full text
The cost of borrower stock or participation certificates must be included in the effective interest rate calculation at the time the stock or participation certificate is purchased in connection with a loan transaction. For subsequent loans to existing borrowers, only the cost of new stock or participation certificates, if any, purchased in connection with a new loan or advance of new funds must be included in the effective interest rate calculation for the transaction.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.