1. Regulations
  2. title 13
  3. chapter I
  4. part 120
  5. subpart B
  6. subjgrp 199
  7. § 120.212

View all text of Subjgrp 199 [§ 120.210 - § 120.214]

§ 120.212 - What limits are there on loan maturities?

The term of a loan shall be:

(a) The shortest appropriate term, depending upon the Borrower's ability to repay;

(b) Ten years or less, unless it finances or refinances real estate or equipment with a useful life exceeding ten years. The term for a loan to finance equipment and/or leasehold improvements may include an additional reasonable period, not to exceed 12 months, when necessary to complete the installation of the equipment and/or complete the leasehold improvements.

(c) A maximum of 25 years, including extensions. (A portion of a loan used to acquire or improve real property may have a term of 25 years plus an additional period needed to complete the construction or improvements.)

[61 FR 3235, Jan. 31, 1996, as amended at 87 FR 38908, June 30, 2022]

AUTHORITY: 15 U.S.C. 634(b) (6), (b) (7), (b) (14), (h), and note, 636(a), (h) and (m), 650, 687(f), 696(3) and (7), and 697(a) and (e); sec. 521, Pub. L. 114-113, 129 Stat. 2242; sec. 328(a), Pub. L. 116-260, 134 Stat. 1182.

SOURCE: 61 FR 3235, Jan. 31, 1996, unless otherwise noted.

CITE AS: 13 CFR 120.212