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8000 - Miscellaneous Statutes and Regulations
{{10-31-05 p.8801}}
INTERNATIONAL LENDING SUPERVISION ACT OF 1983
TITLE IX—INTERNATIONAL LENDING SUPERVISION
SHORT TITLE
SEC. 901. This title may be cited as the "International
Lending Supervision Act of 1983".
[Codified to 12 U.S.C. 3901 note]
[Source: Section 901 of title IX of the Act of November 30, 1983
(Pub. L. No. 98-181; 97 Stat. 1278), effective November 30, 1983]
DECLARATION OF POLICY
SEC. 902. (a)(1) It is the policy of the Congress to
assure that the economic health and stability of the United States and
the other nations of the world shall not be adversely affected or
threatened in the future by imprudent lending practices or inadequate
supervision.
(2) This shall be achieved by strengthening the bank regulatory
framework to encourage prudent private decisionmaking and by enhancing
international coordination among bank regulatory authorities.
(b) The Federal banking agencies shall consult with the banking
supervisory authorities of other countries to reach understandings
aimed at achieving the adoption of effective and consistent supervisory
policies and practices with respect to international lending.
[Codified to 12 U.S.C. 3901]
[Source: Section 902 of title IX of the Act of November 30, 1983
(Pub. L. No. 98-181; 97 Stat. 1278), effective November 30,
1983]
DEFINITIONS
SEC. 903. For purposes of this title--
(1) the term "appropriate Federal banking agency" has the
same meaning given such term in section 3(q) of the Federal Deposit
Insurance Act, except that for purposes of this title such term means
the Board of Governors of the Federal Reserve System for--
(A) bank holding companies and any nonbank subsidiary thereof;
(B) Edge Act corporations organized under section 25(a) of the
Federal Reserve Act; and
(C) Agreement Corporations operating under section 25 of the
Federal Reserve Act; and
(2) the term "banking institution" means--
(A)(i) an insured bank as defined in
section 3(h) of the Federal
Deposit Insurance Act or any subsidiary of an insured bank;
(ii) an Edge Act corporation organized under section 25(a) of the
Federal Reserve Act; and
(iii) an Agreement Corporation operating under section 25 of the
Federal Reserve Act; and
(B) to the extent determined by the appropriate Federal banking
agency, any agency or branch of a foreign bank, and any commercial
lending company owned or
{{10-31-05 p.8802}}controlled by one or more foreign banks or
companies that control a foreign bank as those terms are defined in the
International Banking Act of 1978. The term "banking institution"
shall not include a foreign bank.
[Codified to 12 U.S.C. 3902]
[Source: Section 903 of title IX of the Act of November 30, 1983
(Pub. L. No. 98-181; 97 Stat. 1278), effective November 30, 1983]
STRENGTHENED SUPERVISION OF INTERNATIONAL
LENDING
SEC. 904. (a) Each appropriate Federal banking agency
shall evaluate banking institution foreign country exposure and
transfer risk for use in banking institution examination and
supervision.
(b) Each such agency shall establish examination and supervisory
procedures to assure that factors such as foreign country exposure and
transfer risk are taken into account in evaluating the adequacy of the
capital of banking institutions.
[Codified to 12 U.S.C. 3903]
[Source: Section 904 of title IX of the Act of November 30, 1983
(Pub. L. No. 98-181; 97 Stat. 1278), effective November 30, 1983]
RESERVES
SEC. 905 (a)(1) Each appropriate Federal banking agency
shall require a banking institution to establish and maintain a special
reserve whenever, in the judgment of such appropriate Federal banking
agency--
(A) the quality of such banking institution's assets has been
impaired by a protracted inability of public or private borrowers in a
foreign country to make payments on their external indebtedness as
indicated by such factors, among others, as--
(i) a failure by such public or private borrowers to make full
interest payments on external indebtedness;
(ii) a failure to comply with the terms of any restructured
indebtedness; or
(iii) a failure by the foreign country to comply with any
International Monetary Fund or other suitable adjustment program; or
(B) no definite prospects exist for the orderly restoration of
debt service.
(2) Such reserves shall be charged against current income and
shall not be considered as part of capital and surplus or allowances
for possible loan losses for regulatory, supervisory, or disclosure
purposes.
(b) The appropriate Federal banking agencies shall analyze the
results of foreign loan rescheduling negotiations, assess the loan loss
risk reflected in rescheduling agreements, and, using the powers set
forth in section 908
(regarding capital adequacy), ensure that the capital and reserve
positions of United States banks are adequate to accommodate potential
losses on their foreign loans.
(c) The appropriate Federal banking agencies shall promulgate
regulations or orders necessary to implement this section within one
hundred and twenty days after the date of the enactment of this title.
[Codified to 12 U.S.C. 3904]
[Source: Section 905 of title IX of the Act of November 30, 1983
(Pub. L. No. 98-181; 97 Stat. 1279), effective November 30,
1983]
SEC. 905A. ADDITIONAL RESERVE REQUIREMENTS.
(a) IN GENERAL.--Each appropriate Federal banking agency
shall review the exposure to risk of United States banking institutions
arising from the medium- and long-term loans made by such institutions
that are outstanding to any highly indebted country. Each agency shall
provide direction to such institutions regarding additions to general
reserves
{{12-31-07 p.8802.01}}maintained by each banking institution for
potential loan losses and special reserves required by such agency
arising from such review.
(b) DETERMINATION OF INSTITUTIONAL EXPOSURE TO RISK.--In
determining the exposure of an institution to risk for purposes of
subsection (a), the appropriate Federal banking agency--
(1) shall determine whether any country exposure that is, and has
been for at least 2 years, rated in the category "Other Transfer
Risk Problems" or the category "Substandard" by the
Interagency Country Exposure Review Committee should be reevaluated;
(2) may exempt, in full or in part, from reserve requirements
established pursuant to subsection (a), any loan--
(A) to a country that enters into a debt reduction, debt service
reduction, or financing program with its bank creditors that is
supported by the International Bank for Reconstruction and Development
or the International Monetary Fund; or
(B) secured, in whole or in part, by appropriate collateral for
payment of interest or principal;
(3) take into account any other factors which bear on such
exposure and the particular circumstances of the institution; and
(4) shall consider as indicators of risk, where appropriate, the
average reserve levels maintained by or required of banking
institutions in foreign countries and secondary market prices for such
loans.
(c) TIMING AND REPORT.--
(1) DETERMINED BY AGENCY.--Except as provided in
paragraph (3), each appropriate Federal banking agency shall determine
the timing of any addition to reserves required by subsection (a).
(2) REPORT.--Each appropriate Federal banking agency
shall include in each report required to be made under section 913(d)
after 1989 a report on the actions taken pursuant to this section.
(3) DEADLINE.--Each Federal agency required to undertake
a review described in subsection (a) shall complete the review not
later than December 31, 1990.
(d) HIGHLY INDEBTED COUNTRY DEFINED.--As used in this
section, the term "highly indebted country" means any country
designated as a "Highly Indebted Country" in the annual World
Debt Tables most recently published by the International Bank for
Reconstruction and Development before the date of the enactment of this
section.
[Codified to 12 U.S.C. 3904(a)]
[Source: Section 402(b) of title IV of the Act of December 19,
1989 (Pub. L. No. 101--240; 103 Stat. 2501), effective December 19,
1989]
ACCOUNTING FOR FEES ON INTERNATIONAL LOANS
SEC. 906. (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.
{{2-29-84 p.8803}}
(B) The requirement of paragraph (1) shall take effect on the
date of the enactment of this section.
(b)(1) Subject to subsection (a), 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 the date of the enactment of this
title.
[Codified to 12 U.S.C. 3905]
[Source: Section 906 of title IX of the Act of November
30, 1983 (Pub. L. No. 98-181; 97 Stat. 1279), effective November 30,
1983]
COLLECTION AND DISCLOSURE OF CERTAIN INTERNATIONAL LENDING
DATA
SEC. 907. (a) Each appropriate Federal banking agency
shall require, by regulation, each banking institution with foreign
country exposure to submit, no fewer than four times each calendar
year, information regarding such exposure in a format prescribed by
such regulations.
(b) Each appropriate Federal banking agency shall require, by
regulation, banking institutions to disclose to the public information
regarding material foreign country exposure in relation to assets and
to capital.
(c) The appropriate Federal banking agencies shall promulgate
regulations or orders necessary to implement this section within one
hundred and twenty days after the date of the enactment of this
title.
[Codified to 12 U.S.C. 3906]
[Source: Section 907 of title IX of the Act of November
30, 1983 (Pub. L. No. 98-181; 97 Stat. 1280), effective November 30,
1983]
CAPITAL ADEQUACY
SEC. 908. (a)(1) Each appropriate Federal banking agency
shall cause banking institutions to achieve and maintain adequate
capital by establishing minimum levels of capital for such banking
institutions and by using such other methods as the appropriate Federal
banking agency deems appropriate.
(2) Each appropriate Federal banking agency shall have the
authority to establish such minimum level of capital for a banking
institution as the appropriate Federal banking agency, in its
discretion, deems to be necessary or appropriate in light of the
particular circumstances of the banking institution.
(b)(1) Failure of a banking institution to maintain capital at or
above its minimum level as established pursuant to subsection (a) may
be deemed by the appropriate Federal banking agency, in its discretion,
to constitute an unsafe and unsound practice within the meaning of
section 8 of the Federal
Deposit Insurance Act.
(2)(A) In addition to, or in lieu of, any other action authorized
by law, including paragraph (1), the appropriate Federal banking agency
may issue a directive to a banking institution that fails to maintain
capital at or above its required level as established pursuant to
subsection (a).
(B)(i) Such directive may require the banking institution to
submit and adhere to a plan acceptable to the appropriate Federal
banking agency describing the means and timing by which the banking
institution shall achieve its required capital level.
(ii) Any such directive issued pursuant to this paragraph,
including plans submitted pursuant thereto, shall be enforceable under
the provisions of section 8(i)
of the Federal Deposit Insurance Act to the same extent as an effective
and outstanding order issued pursuant to
section 8(b) of the Federal
Deposit Insurance Act which has become final.
{{2-29-84 p.8804}}
(3)(A) Each appropriate Federal banking agency may consider such
banking institution's progress in adhering to any plan required under
this subsection whenever such banking institution, or an affiliate
thereof, or the holding company which controls such banking
institution, seeks the requisite approval of such appropriate Federal
banking agency for any proposal which would divert earnings, diminish
capital, or otherwise impede such banking institution's progress in
achieving its minimum capital level.
(B) Such appropriate Federal banking agency may deny such
approval where it determines that such proposal would adversely affect
the ability of the banking institution to comply with such plan.
(C) The Chairman of the Board of Governors of the Federal Reserve
System and the Secretary of the Treasury shall encourage governments,
central banks, and regulatory authorities of other major banking
countries to work toward maintaining and, where appropriate,
strengthening the capital bases of banking institutions involved in
international lending.
[Codified to 12 U.S.C. 3907]
[Source: Section 908 of title IX of the Act of November 30, 1983
(Pub. L. No. 98-181; 97 Stat. 1280), effective November 30, 1983]
FOREIGN LOAN EVALUATIONS
SEC. 909. (a)(1) In any case in which one or more banking
institutions extend credit, whether by loan, lease, guarantee, or
otherwise, which individually or in the aggregate exceeds $20,000,000,
to finance any project which has as a major objective the construction
or operation of any mining operation, any metal or mineral primary
processing operation, any fabricating facility or operation, or any
metal-making operations (semi and finished) located outside the United
States or its territories and possessions, a written economic
feasibility evaluation of such foreign project shall be prepared and
approved in writing by a senior official of the banking institution,
or, if more than one banking institution is involved, the lead banking
institution, prior to the extension of such credit.
(2) Such evaluation shall--
(A) take into account the profit potential of the project, the
impact of the project on world markets, the inherent competitive
advantages and disadvantages of the project over the entire life of the
project, and the likely effect of the project upon the overall
long-term economic development of the country in which the project is
located; and
(B) consider whether the extension of credit can reasonably be
expected to be repaid from revenues generated by such foreign project
without regard to any subsidy, as defined in international agreements,
provided by the government involved or any instrumentality of any
country.
(b) Such economic feasibility evaluations shall be reviewed by
representatives of the appropriate Federal banking agencies whenever an
examination by such appropriate Federal banking agency is conducted.
(c)(1) The authorities of the Federal banking agencies contained in
section 8 of the Federal Deposit Insurance Act and in section 910 of
this Act, except those contained in section 910(d), shall be applicable
to this section.
(2) No private right of action or claim for relief may be
predicated upon this section.
[Codified to 12 U.S.C. 3908]
[Source: Section 909 of title IX of the Act of November 30, 1983
(Pub. L. No. 98-181; 97 Stat. 1281), effective November 30, 1983]
GENERAL AUTHORITIES
SEC. 910. (a)(1) The appropriate Federal banking agencies
are authorized to interpret and define the terms used in this title,
and each appropriate Federal banking agency shall prescribe rules or
regulations or issue orders as necessary to effectuate the purposes of
this title and to prevent evasions thereof.
{{2-29-08 p.8805}}
(2) The appropriate Federal banking agency is authorized to apply
the provisions of this title to any affiliate of an insured depository
institution, but only to affiliates for which it is the appropriate
Federal banking agency, in order to promote uniform application of this
title or to prevent evasions thereof.
(3) For purposes of this section, the term "affiliate"
shall have the same meaning as in section
23A of the Federal Reserve Act, except that the term "member
bank" in such section shall be deemed to refer to an "insured
depository institution", as such term is used in
section 3(h) of the Federal
Deposit Insurance Act.
(b) The appropriate Federal banking agencies shall establish
uniform systems to implement the authorities provided under this title.
(c)(1) The powers and authorities granted in this title shall be
supplemental to and shall not be deemed in any manner to derogate from
or restrict the authority of each appropriate Federal banking agency
under section 8 of the Federal
Deposit Insurance Act or any other law including the authority to
require additional capital or reserves.
(2) Any such authority may be used by any appropriate Federal
banking agency to ensure compliance by a banking institution with the
provisions of this title and all rules, regulations, or orders issued
pursuant thereto.
(d)(1) Any banking institution which violates, or any officer,
director, employee, agent, or other person participating in the conduct
of the affairs of such banking institution, who violates any provision
of this title, or any rule, regulation, or order, issued under this
title, shall forfeit and pay a civil penalty of not more than $1,000
per day for each day during which such violation continues.
(2) Such violations shall be deemed to be a violation of a final
order under section 8(i)(2) of
the Federal Deposit Insurance Act and the penalty shall be assessed and
collected by the appropriate Federal banking agency under the
procedures established by, and subject to the rights afforded to
parties in, such section.
[Codified to 12 U.S.C. 3909]
[Source: Section 910 of title IX of the Act of November 30, 1983
(Pub. L. No. 98-181; 97 Stat. 1282), effective November 30, 1983;
section 713(b) of title VII of the Act of October 13, 2006 (Pub. L. No.
109--351; 120 Stat. 1995), effective October 13, 2006]
GAO AUDIT AUTHORITY
SEC. 911. (a)(1) Under regulations of the Comptroller
General, the Comptroller General shall audit the appropriate Federal
banking agencies (as defined in
section 903 of this title),
but may carry out an onsite examination of an open insured bank or bank
holding company only if the appropriate Federal banking agency has
consented in writing.
(2) An audit under this subsection may include a review or
evaluation of the international regulation, supervision, and
examination activities of the appropriate Federal banking agency,
including the coordination of such activities with similar activities
of regulatory authorities of a foreign government or international
organization.
(3) Audits of the Federal Reserve Board and Federal Reserve banks
may not include--
(A) transactions for, or with, a foreign central bank, government
of a foreign country, or nonprivate international financing
organization;
(B) deliberations, decisions, or actions on monetary policy
matters, including discount window operations, reserves of member
banks, securities credit, interest on deposits, or open market
operations;
(C) transactions made under the direction of the Federal Open
Market Committee; or
(D) a part of a discussion or communication among or between
members of the Board of Governors of the Federal Reserve System and
officers and employees of the Federal Reserve System related to
subparagraphs (A) through (C) of this paragraph.
(b)(1)(A) Except as provided in this subsection, an officer or
employee of the Government Accountability Office may not disclose
information identifying an open bank, an open bank holding company, or
a customer of an open or closed bank or bank holding company.
(B) The Comptroller General may disclose information related to
the affairs of a closed bank or closed bank holding company
indentifying a customer of the closed bank or
{{2-29-08 p.8806}}closed
bank holding company only if the Comptroller General believes the
customer had a controlling influence in the management of the closed
bank or closed bank holding company or was related to or affiliated
with a person or group having a controlling influence.
(2) An officer or employee of the Government Accountability
Office may discuss a customer, bank, or bank holding company with an
official of an appropriate Federal banking agency and may report an
apparent criminal violation to an appropriate law enforcement authority
of the United States Government or a State.
(3) This subsection does not authorize an officer or employee of
an appropriate Federal banking agency to withhold information from a
committee of the Congress authorized to have the information.
(c)(1)(A) To carry out this section, all records and property of or
used by an appropriate Federal banking agency, including samples of
reports of examinations of a bank or bank holding company the
Comptroller General considers statistically meaningful and workpapers
and correspondence related to the reports shall be made available to
the Comptroller General, including such records and property pertaining
to the coordination of international regulation, supervisor and
examination activities of an appropriate Federal banking agency.
(B) The Comptroller General shall give each appropriate Federal
banking agency a current list of officers and employees to whom, with
proper identification, records and property may be made available, and
who may make notes or copies necessary to carry out an audit.
(C) Each appropriate Federal banking agency shall give the
Comptroller General suitable and lockable offices and furniture,
telephones, and access to copying facilities.
(2) Except for the temporary removal of workpapers of the
Comptroller General that do not identify a customer of an open or
closed bank or bank holding company, an open bank, or an open bank
holding company, all workpapers of the Comptroller General and records
and property of or used by an appropriate Federal banking agency that
the Comptroller General possesses during an audit, shall remain in such
agency. The Comptroller General shall prevent unauthorized access to
records or property.
[Codified to 12 U.S.C. 3910]
[Source: Section 911 of title IX of the Act of November 30, 1983
(Pub. L. No. 98-181; 97 Stat. 1282), effective November 30, 1983;
amended by section 8(b) of the Act of July 7, 2004 (Pub. L. No.
108--171; 118 Stat. 814), effective July 7, 2004]
EQUAL REPRESENTATION FOR THE FEDERAL DEPOSIT INSURANCE
CORPORATION AND THE OFFICE OF THRIFT SUPERVISION
SEC. 912. (a) IN GENERAL--As one of the 4
Federal bank regulatory and supervisory agencies, and as the insurer of
the United States banks involved in international lending, the Federal
Deposit Insurance Corporation shall be given equal representation with
the Board of Governors of the Federal Reserve System and the Office of
the Comptroller of the Currency on the Committee on Banking Regulations
and Supervisory Practices of the Group of Ten Countries and
Switzerland.
(b) As one of the 4 Federal bank regulatory and supervisory
agencies, the Office of Thrift Supervision shall be given equal
representation with the Board of Governors of the Federal Reserve
System, the Office of the Comptroller of the Currency, and the Federal
Deposit Insurance Corporation on the Committee on Banking Regulations
and Supervisory Practices of the Group of Ten Countries and
Switzerland.
[Codified to 12 U.S.C. 3911]
[Source: Section 912 of title IX of the Act of November
30, 1983 (Pub. L. No. 98-181; 97 Stat. 1284), effective November 30,
1983; section 713(a) of title VII of the Act of October 13, 2006 (Pub.
L. No. 109--351; 120 Stat. 1995), effective October 13,
2006]
{{4-30-97 p.8807}}
REPORTS
SEC. 913. [Repealed]
[Source: Section 913 of title IX of the Act of November 30, 1983
(Pub. L. No. 98-181; 97 Stat. 1284), effective November 30, 1983; as
repealed by section 2224(c) of title II of the Act of September 30,
1996 (Pub. L. No. 104--208; 110 Stat. 3009--415), effective September
30, 1996]
[The page following this is 8809.]
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