12 CFR 614.4358 - Computation of obligations.

§ 614.4358 Computation of obligations.

(a)Inclusions. The computation of total loans to each borrower for the purpose of computing their lending and leasing limit shall include:

(1) The total unpaid principal of all loans and lease balances outstanding and the total amount of undisbursed commitments except as excluded by paragraph (b) of this section. This amount shall include loans that have been charged off on the books of the institution in whole or in part but have not been collected, except to the extent that such amounts are not legally collectible;

(2) Purchased interests in loans, including participation interests, to the extent of the amount of the purchased interest, including any undisbursed commitment;

(3) Loans attributed to a borrower in accordance with § 614.4359.

(b)Exclusions. The following loans when adequately documented in the loan file, may be excluded from loans to a borrower subject to the lending and leasing limit:

(1) Any loan or portion of a loan that carries a full faith and credit performance guaranty or surety of any department, agency, bureau, board, commission, or establishment of the United States government, provided there is no evidence to suggest that the guaranty has become unenforceable and the institution can demonstrate that it is in compliance with the terms and conditions of the guaranty.

(2) Any loan or portion of a loan guaranteed by a Farm Credit System institution, pursuant to the provisions of § 614.4345 on guaranty agreements. This exclusion does not apply to the institution providing the guaranty.

(3) Any loan or portion of a loan that is secured by bonds, notes, certificates of indebtedness, or Treasury bills of the United States or by other obligations guaranteed as to principal and interest by the United States government, provided the loans are fully secured by the current market value of such obligations. If the market value of the collateral declines to below the balance of the loan, and the entire loan, individually, or when combined with other loans and undisbursed commitments to or attributed to the borrower, causes the borrower's total indebtedness to exceed the institution's lending limit, the institution shall have 5 business days to bring the loan into conformance before it shall be deemed to be in violation of the lending limit.

(4) Interests in loans sold, including participation interests, when the sale agreement meets the following requirements:

(i) The interest must be sold without recourse; and

(ii) The agreement under which the interest is sold must provide for the sharing of all payments of principal, collection expenses, collateral proceeds, and risk of loss on a pro rata basis according to the percentage interest in the principal amount of the loan. Agreements that provide for the pro rata sharing to commence at the time of default or similar event, as defined in the agreement under which the interest is sold, shall be considered to be pro rata agreements, notwithstanding the fact that advances are made and payments are distributed on a basis other than pro rata prior to that time.

(5) Interests in leases sold when the sale agreement provides that:

(i) The interest sold must be:

(A) An undivided interest in all the lease payments or the residual value of all the leased property; or

(B) A fractional undivided interest in the total lease transaction;

(ii) The interest must be sold without recourse; and

(iii) Sharing of all lease payments must be on a pro rata basis according to the percentage interest in the lease payments.

(6) Loans sold in their entirety to a pooler certified by the Federal Agricultural Mortgage Corporation, if an interest in a pool of subordinated participation interests is purchased to satisfy the requirements of title VIII of the Act.

[ 58 FR 40321, July 28, 1993. Redesignated and amended at 64 FR 34517, June 28, 1999; 67 FR 1285, Jan. 10, 2002]

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code
U.S. Code: Title 12 - BANKS AND BANKING

§ 2011 - Establishment, charters, titles, branches

§ 2013 - General corporate powers

§ 2014 - Farm Credit Bank capitalization

§ 2015 - Lending authority

§ 2017 - Eligibility

§ 2018 - Security; terms

§ 2019 - Purposes for extensions of credit

§ 2071 - Organization and charters

§ 2073 - General corporate powers

§ 2074 - Production credit association capitalization

§ 2075 - Short- and intermediate-term loans; participation; other financial assistance; terms; conditions; interest; security

§ 2091 - Organizations; articles; charters; powers of the Farm Credit Administration

§ 2093 - General corporate powers

§ 2094 - Federal land bank association capitalization

§ 2097 - Liens on stock

§ 2121 - Establishment; titles; branches

§ 2122 - Corporate existence; general corporate powers

§ 2124 - Stock of banks for cooperatives

§ 2128 - Loans, commitments, and technical and financial assistance

§ 2129 - Eligibility

§ 2131 - Loans

§ 2141 - Charter, powers, and operation

§ 2149 - Lending limits

§ 2183 - Dissolution; voluntary or involuntary liquidation; mergers; receiverships or conservators

§ 2184 - Communications with stockholders

§ 2201 - Notice of action on application

§ 2202 - Reconsideration of actions

§ 2202a - Restructuring distressed loans

§ 2202c - Review of restructuring denials

§ 2202d - Protection of borrowers who meet all loan obligations

§ 2202e - Waiver of mediation rights by borrowers

§ 2206 - Participation loans

§ 2206a - Authority of Farm Credit Banks and direct lender associations to participate in loans to similar entities for risk management purposes

§ 2207 - Young, beginning, and small farmers and ranchers

§ 2211 - Establishment

§ 2212 - Powers of Farm Credit Administration

§ 2213 - Regulation and examination

§ 2214 - State laws

§ 2219a - Right of first refusal

§ 2219b - Application of uninsured accounts

§ 2243 - Powers of Board

§ 2244 - Chairman; responsibilities; governing standards

§ 2252 - Powers and duties

§ 2279a - Power to merge

12 U.S. Code § 2279a–2 - Powers of merged banks

§ 2279b - Transfer of lending authority

12 U.S. Code § 2279c–1 - Merger of associations

§ 2279f - Merger of similar banks

12 U.S. Code § 2279f–1 - Merger of similar associations

§ 2279aa - Definitions

12 U.S. Code § 2279aa–5 - Certification of agricultural mortgage marketing facilities

Statutes at Large

Title 12 published on 09-Jun-2018 03:57

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 12 CFR Part 614 after this date.

  • 2016-11-07; vol. 81 # 215 - Monday, November 7, 2016
    1. 81 FR 78063 - Loans in Areas Having Special Flood Hazards—Private Flood Insurance
      GPO FDSys XML | Text
      Joint notice of proposed rulemaking.
      Comments must be received on or before January 6, 2017.
      12 CFR Part 22