§ 160.170. Records for lending transactions.
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/us/cfr/t12/s§ 160.170·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In establishing and maintaining its records pursuant to § 163.170 of this chapter, each Federal savings association and service corporation should establish and maintain loan documentation practices that:
(a)Ensure that the institution can make an informed lending decision and can assess risk on an ongoing basis;
(b)Identify the purpose and all sources of repayment for each loan, and assess the ability of the borrower(s) and any guarantor(s) to repay the indebtedness in a timely manner;
(c)Ensure that any claims against a borrower, guarantor, security holders, and collateral are legally enforceable;
(d)Demonstrate appropriate administration and monitoring of its loans; and
(e)Take into account the size and complexity of its loans.