Laws: Cases and Codes : U.S. Code : Title 12 : Section 3905


   
U.S. Code as of: 01/19/04
Section 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.



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