Page:United States Statutes at Large Volume 101 Part 3.djvu/281

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1579

shall take into consideration the factors specified in section 4.14A(d)(l).". 03) SENSE OF CONGRESS.—It is the sense of Congress that the banks State and local and associations (except banks for cooperatives) operating under the f OTTO'^O^O']!*! 12 u Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.) should administer note.s e 2202a distressed loans to farmers with the objective of using the loan guarantee programs of the Farmers Home Administration and other loan restructuring measures, including participation in interest rate buy-down programs that are Federally or State funded, and other Federal and State sponsored financial assistance programs that offer relief to financially distressed farmers, as alternatives to foreclosure, considering the availability and appropriateness of such programs on a case-by-case basis. SEC. 103. DISCLOSURE BY BANKS AND ASSOCIATIONS.

Section 4.13 (12 U.S.C. 2199) is amended to read as follows: "SEC. 4.13. DISCLOSURE.

"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 limitations, 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 interest 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; "(5) except with respect to stock guaranteed under section 4.9A, a statement indicating 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.". SEC. 104. ACCESS TO DOCUMENTS AND INFORMATION.

Section 4.13A (12 U.S.C. 2200) is amended— (1) by striking out "System institutions" and inserting in lieu thereof "qualified lenders"; and (2) by striking out the period at the end thereof and inserting in lieu thereof: "and copies of each appraisal of the borrower's assets made or used by the qualified lender.". SEC. 105. NOTICE OF ACTION RESTRUCTURING.

ON

APPLICATION

FOR

LOANS OR

Section 4.13B (12 U.S.C. 2201) is amended to read as follows:

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