Laws: Cases and Codes : U.S. Code : Title 12 : Section 3904a
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U.S. Code as of:
01/19/04
Section 3904a - Notes
SOURCE
(Pub. L. 98-181, title IX, Sec. 905A, as added Pub. L. 101-240,
title IV, Sec. 402(b), Dec. 19, 1989, 103 Stat. 2501.)
REFERENCES IN TEXT
Section 3912(d) of this title, referred to in subsec. (c)(2), was
repealed by Pub. L. 104-208, div. A, title II, Sec. 2224(c), Sept.
30, 1996, 110 Stat. 3009-415.
CONGRESSIONAL FINDINGS
Section 402(a) of Pub. L. 101-240 provided that: "The Congress
finds that -
"(1) since the adoption of the International Lending
Supervision Act of 1983 [12 U.S.C. 3901 et seq.], the credit
quality of loans by United States banking institutions to highly
indebted countries has deteriorated and the prospects for full
repayment of such loans have diminished;
"(2) in general during this period, the level of country
exposure and transfer risk associated with loans by United States
banking institutions to highly indebted countries has not been
adequately reflected in the reserve levels established by many
individual United States banking institutions or the reserve
requirements imposed by Federal banking agencies pursuant to such
Act;
"(3) during the last 3 years and particularly in recent months,
United States banking institutions have increased their reserves
for possible losses from loans to highly indebted countries but
such reserves remain, in some cases, significantly lower than
reserves established by banking institutions in a number of
foreign countries and may not be adequate to deal with potential
risks; and
"(4) in order to fulfill the purposes of such Act, the Federal
banking agencies should take a more active role in reviewing
reserve levels established by United States banking institutions
for potential losses from loans to highly indebted countries and
in requiring appropriate levels of both special and general
reserves to reflect the increased risk of such loans."
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