Required disclosures—in general. A qualified lender must disclose in writing:

The interest rate on the loan;

The effective interest rate of the loan;

The amount of stock or participation certificates that a borrower is required to purchase in connection with the loan and included in the calculation of the effective interest rate of the loan;

All loan origination charges included in the effective interest rate;

That stock or participation certificates that borrowers are required to purchase are at risk and may only be retired at the discretion of the board of the institution; and

The various types of loan options available to borrowers, with an explanation of the terms and borrower rights that apply to each type of loan.

Adjustable rate loans. A qualified lender must provide the following information for adjustable rate loans in addition to the requirements of paragraph (a) of this section:

The circumstances under which the rate can be adjusted;

How much the rate can be adjusted at any one time and how much the rate can be adjusted during the term of the loan;

How often the rate can be adjusted;

Any limitations on the amount or frequency of adjustments;

The specific factors that the qualified lender may take into account in making adjustments to the interest rate on the loan; and

If the borrower's interest rate is directly tied to a widely publicized external index:

How and where the borrower may obtain information on changes to the index; and

When the qualified lender will provide written notice of changes to the borrower's interest rate.