12 C.F.R. § 617.7135 What subsequent disclosures must a qualified lender make to a borrower?
Title 12 - Banks and Banking
(a) Notice of interest rate change. (1) A qualified lender must provide written notice to a borrower of any change in interest rate on the borrower's existing loan, containing the following information: (i) The new interest rate on the loan; (ii) The date on which the new rate is effective; and (iii) The factors used to adjust the interest rate on the loan. (2) If the borrower's interest rate is directly tied to a widely publicized external index, a qualified lender must provide written notice to the borrower of the rate change within forty-five (45) days after the effective date of the change. (3) If the borrower's interest rate is not directly tied to a widely publicized external index, a qualified lender must send written notice to the borrower of the rate change within ten (10) days after the effective date of the change. (b) Notice of increase in stock purchase requirement. If a qualified lender increases the amount of stock (or participation certificates) a borrower must own during the term of a loan, the lender must send a written notice to the borrower at least ten (10) days prior to the effective date of the increase. The notice must state: (1) The new effective interest rate on the outstanding balance for the remaining term of the borrower's loan; (2) The date on which the new rate is effective; and (3) The reason for the increase in the borrower stock (or participation certificates) purchase requirement.
Title 12: Banks and Banking
PART 617—BORROWER RIGHTS
Subpart B—Disclosure of Effective Interest Rates
§ 617.7135 What subsequent disclosures must a qualified lender make to a borrower?
