We have made a loan to a gentleman to purchase cattle. The man does not own a farm of his own, but he works for a farmer. He is going to pasture his herd with his boss's cattle. Do we use/report the address where the cattle are going to be located (even though it isn't his property) or do we use/report his home address?

Thanks.

I would use his home address because that is technically his place of business (farming).

Since he isn't going to have the cattle in his home, the location of the loan proceeds is out at the farm in my opinion.

IMO use the home/business address.The funds were used at the business address to make the purchase of a commodity which is just "stored" at another location. The home address received the benefit of the loan proceeds.

Again I would use the home address. Just think of a business located at 123 Main st. The business borrows to buy a paving truck. The paving truck will not pave at the business address but paves at a location in the next town. You would use the business address in this case and not the address of the lot in the next town where the truck is.

The same is true for the cattle and tractor. He can move both of those at any time to a new location. If he owned the farm land and always kept his cattle and tractor there, then I would say use the farm land location.

Typically you do not use a home address, which might be what you're hung up on here BUT Don and KC have both answered right. The benefit of the proceeds would be the businesses, which happens to be run out of the home of the owner. You see this often in farming and contracting.

As Don mentions, the cattle are just being housed at the other address, they'll move again when they're butchered or milked or whatever he's going to do with them maybe even when they rotate fields, so the address wouldn't be really receiving the benefit of the funds.

Think of it in terms of a car that is used for business purposes. Would you report the BP Garage if the engineer it was purchased for contracted with BP and was planning on parking it there the majority of the time? Or would you be more logical and report the address of the business who owned the vehicle and who purchased it for the engineer, regardless of where it was going to spend the night?

Thank you all for your feedback!! It is appreciated!

Page 13, under loan location, of the CRA guide it states
Institutions should ask their borrowers to provide the street address of the main business facility or farm or the location where the loan proceeds otherwise will be applied.

So since the second scenario loan proceeds are to be used at the farm that the borrower eventually purchases, why wouldn't you use the address of the farm?