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§ 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.)



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