StacksVerified U.S. regulatory reference

12 CFR §160.170

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
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:
  1. (a)Ensure that the institution can make an informed lending decision and can assess risk on an ongoing basis;
  2. (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;
  3. (c)Ensure that any claims against a borrower, guarantor, security holders, and collateral are legally enforceable;
  4. (d)Demonstrate appropriate administration and monitoring of its loans; and
  5. (e)Take into account the size and complexity of its loans.