Check a Farm Credit borrower-rights waiver under 12 CFR 617.7010
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Extract any waiver of Farm Credit borrower rights, whether it is voluntary and in writing, which rights it names, and whether it says the borrower was represented by legal counsel. Do not treat a farm lease as a Farm Credit loan document, and do not draft a waiver.
- What the lawyer must review
- 12 CFR 617.7010(a) says a qualified lender may not obtain a waiver of borrower rights except as paragraphs (b) and (c) allow. Paragraph (b) allows a borrower to waive rights relating to distressed loan restructuring, credit reviews, and the right of first refusal when the loan is guaranteed by the Small Business Administration or in connection with a loan sale as provided in 12 CFR 617.7015. The waiver must be voluntary and in writing, and the document must clearly explain the rights the borrower is asked to waive. Paragraph (c) allows a waiver of all part 617 borrower rights in a loan syndication with non-System lenders that section 4.14A(a)(6) of the Act does not otherwise require to provide borrower rights. A loan syndication, for that paragraph, means each member has a direct contractual relationship with the borrower, and it does not include a transaction created for the primary purpose of avoiding borrower rights. The waiver must be voluntary and in writing, clearly disclose the rights waived, and contain a statement that the borrower was represented by legal counsel. The lawyer applies those limits. No federal agricultural-tenancy statute was opened, so this task does not review a farm lease. The Farm Credit Administration's own borrower-rights page was unavailable and is not a source. ABA Model Rules 1.1 and 5.3 and Formal Opinion 512 leave the review with the lawyer.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes extracting and organising information and preparing preliminary structure or wording. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm the appropriate instructions, permissions and cultural context with the relevant people before using information or communicating the result.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.