# 12 CFR § 615.5060: Special collateral requirement

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5060

## Section

- **Citation:** 12 CFR § 615.5060
- **Heading:** Special collateral requirement
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 12—Banks and Banking > CHAPTER VI—FARM CREDIT ADMINISTRATION > SUBCHAPTER B—FARM CREDIT SYSTEM > PART 615—FUNDING AND FISCAL AFFAIRS, LOAN POLICIES AND OPERATIONS, AND FUNDING OPERATIONS > Subpart B—Collateral

## Text

(a) An attorney lien certification need not be obtained at the time a note is accepted as collateral if the counsel for the bank or association has determined, in writing, that the bank or association procedures provide sufficient safeguards to ensure that a real estate mortgage loan, within the meaning of section 1.7(a) of the Act, made by the bank or association will be secured by a first lien or its equivalent on the borrower's interest in the primary real estate security. However, the note shall be withdrawn from collateral upon the expiration of 1 year from the date of the loan closing, unless, before the end of such period:
(1) An attorney has certified that the bank or association has a first lien or its equivalent from a security standpoint in the primary real estate security for the loan; or
(2) The bank or association has obtained a title insurance policy insuring that it has a first lien or its equivalent from a security standpoint in the primary real estate security for the loan, and all of the following requirements are satisfied:
(i) The final policy was issued by a title insurance company that has been licensed to issue such policies by the appropriate state insurance regulatory body or bodies, has not been barred or suspended, and has been approved by the lending institution;
(ii) The standard form on which the final policy was issued has been approved by the counsel for the lending institution;
(iii) The final policy was issued for an amount at least equal to the balance outstanding on the real estate mortgage loan or, if separate policies are issued to insure separate tracts, the minimum amount insured by each policy shall bear the same ratio to the outstanding balance of the loan that the appraised value of the tract insured by that policy bears to the appraised value of all the real estate security for the loan; and
(iv) Personnel meeting written standards of training and experience in real estate title matters prescribed by the counsel for the lending institution certified in writing that:
(A) They reviewed the final policy and that the policy complies with standards prescribed by such counsel; and
(B) The final policy insures that a first lien or its equivalent from a security standpoint has been obtained on the primary real estate security for the loan.
(b) A loan participation agreement to which a System bank or association is a participant and involving a loan originated by another lender shall constitute an obligation meeting the collateral requirements of § 615.5050(a).
[54 FR 1159, Jan. 12, 1989, as amended at 59 FR 3787, Jan. 27, 1994]

## Nearby sections

- [12 CFR § 615.5000 § 615.5000 General responsibilities.](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5000.md)
- [12 CFR § 615.5010 § 615.5010 Funding Corporation.](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5010.md)
- [12 CFR § 615.5030 § 615.5030 Borrowings from commercial banks.](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5030.md)
- [12 CFR § 615.5040 § 615.5040 Borrowings from financial institutions other than commercial banks.](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5040.md)
- [12 CFR § 615.5045 § 615.5045 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5045.md)
- [12 CFR § 615.5050 § 615.5050 Collateral requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5050.md)
- [12 CFR § 615.5060 § 615.5060 Special collateral requirement.](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5060.md)
- [12 CFR § 615.5090 § 615.5090 Reduction in carrying value of collateral.](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5090.md)
- [12 CFR § 615.5100 § 615.5100 Authority to issue.](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5100.md)
- [12 CFR § 615.5101 § 615.5101 Requirements for issuance.](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5101.md)
- [12 CFR § 615.5102 § 615.5102 Issuance of debt obligations through the Funding Corporation.](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5102.md)
- [12 CFR § 615.5105 § 615.5105 Consolidated Systemwide notes.](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5105.md)
- [12 CFR § 615.5110 § 615.5110 Authority to issue (other funding).](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5110.md)
- [12 CFR § 615.5120 § 615.5120 Purchase eligibility requirement.](https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5120.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-12-615.5060. Check the current official text before relying on it. Not legal advice.