# 12 CFR § 616.6300: Leasing policies, procedures, and underwriting standards

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-12-616.6300

## Section

- **Citation:** 12 CFR § 616.6300
- **Heading:** Leasing policies, procedures, and underwriting standards
- **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 616—LEASING

## Text

The board of each institution engaged in lease underwriting must adopt a written policy (or policies). Management, at the direction of the board, must develop procedures that reflect lease practices that control risk and comply with all applicable laws and regulations. Any leasing activity must comply with the lending policies and loan underwriting requirements in § 614.4150 of this chapter. An institution engaged in the making, buying, or syndicating of leases also must adopt written policies and procedures that address the additional risks associated with leasing. Written policies and procedures must address the following, if applicable:
(a) Appropriateness of the lease amount, purpose, and terms and conditions, including the residual value established at the inception of the lease;
(b) Process for estimating the leased asset's market value during the lease term;
(c) Types of equipment and facilities the institution will lease;
(d) Remarketing of leased property and associated risks;
(e) Property tax and sales tax reporting;
(f) Title and ownership of leased assets;
(g) Title and licensing for motor vehicles;
(h) Liability associated with ownership, including any environmental hazards or risks;
(i) Insurance requirements for both the lessor and lessee;
(j) Classification of leases in accordance with generally accepted accounting principles; and
(k) Tax treatment of lease transactions and associated risks.

## Nearby sections

- [12 CFR § 616.6100 § 616.6100 Purchase and sale of interests in leases.](https://www.frixlaw.com/law-library/statutes/ecfr-12-616.6100.md)
- [12 CFR § 616.6200 § 616.6200 Out-of-territory leasing.](https://www.frixlaw.com/law-library/statutes/ecfr-12-616.6200.md)
- [12 CFR § 616.6300 § 616.6300 Leasing policies, procedures, and underwriting standards.](https://www.frixlaw.com/law-library/statutes/ecfr-12-616.6300.md)
- [12 CFR § 616.6400 § 616.6400 Documentation.](https://www.frixlaw.com/law-library/statutes/ecfr-12-616.6400.md)
- [12 CFR § 616.6500 § 616.6500 Investment in leased assets.](https://www.frixlaw.com/law-library/statutes/ecfr-12-616.6500.md)
- [12 CFR § 616.6600 § 616.6600 Leasing limit.](https://www.frixlaw.com/law-library/statutes/ecfr-12-616.6600.md)
- [12 CFR § 616.6700 § 616.6700 Stock purchase requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-12-616.6700.md)
- [12 CFR § 619.9000 § 619.9000 The Act.](https://www.frixlaw.com/law-library/statutes/ecfr-12-619.9000.md)
- [12 CFR § 619.9015 § 619.9015 Agricultural credit associations.](https://www.frixlaw.com/law-library/statutes/ecfr-12-619.9015.md)
- [12 CFR § 619.9020 § 619.9020 Agricultural credit banks.](https://www.frixlaw.com/law-library/statutes/ecfr-12-619.9020.md)
- [12 CFR § 619.9050 § 619.9050 Associations.](https://www.frixlaw.com/law-library/statutes/ecfr-12-619.9050.md)
- [12 CFR § 619.9060 § 619.9060 Bank for cooperatives.](https://www.frixlaw.com/law-library/statutes/ecfr-12-619.9060.md)
- [12 CFR § 619.9110 § 619.9110 Consolidation.](https://www.frixlaw.com/law-library/statutes/ecfr-12-619.9110.md)
- [12 CFR § 619.9130 § 619.9130 Differential interest rates.](https://www.frixlaw.com/law-library/statutes/ecfr-12-619.9130.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-12-616.6300. Check the current official text before relying on it. Not legal advice.