§ 3905. — Accounting for fees on international loans.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3905]
TITLE 12--BANKS AND BANKING
CHAPTER 40--INTERNATIONAL LENDING SUPERVISION
Sec. 3905. Accounting for fees on international loans
(a)(1) In order to avoid excessive debt service burdens on debtor
countries, no banking institution shall charge, in connection with the
restructuring of an international loan, any fee exceeding the
administrative cost of the restructuring unless it amortizes such fee
over the effective life of each such loan.
(2)(A) Each appropriate Federal banking agency shall promulgate such
regulations as are necessary to further carry out the provisions of this
subsection.
(B) The requirement of paragraph (1) shall take effect on November
30, 1983.
(b)(1) Subject to subsection (a) of this section, the appropriate
Federal banking agencies shall promulgate regulations for accounting for
agency, commitment, management and other fees charged by a banking
institution in connection with an international loan.
(2) Such regulations shall establish the accounting treatment of
such fees for regulatory, supervisory, and disclosure purposes to assure
that the appropriate portion of such fees is accrued in income over the
effective life of each such loan.
(3) The appropriate Federal banking agencies shall promulgate
regulations or orders necessary to implement this subsection within one
hundred and twenty days after November 30, 1983.
(Pub. L. 98-181, title IX, Sec. 906, Nov. 30, 1983, 97 Stat. 1279.)
