12 U.S.C. § 3904a
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 maintained by each banking institution for potential loan losses and special reserves required by such agency arising from such review.
In determining the exposure of an institution to risk for purposes of subsection (a), the appropriate Federal banking 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).
Each appropriate Federal banking agency shall include in each report required to be made under section 3912(d) 1 of this title after 1989 a report on the actions taken pursuant to this section.
Each Federal agency required to undertake a review described in subsection (a) shall complete the review not later than December 31, 1990.
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 December 19, 1989.
1 See References in Text note below.
12 U.S.C. § 3904a
EDITORIAL NOTES
REFERENCES IN TEXTSection 3912(d) of this title, referred to in subsec. (c)(2), was repealed by Pub. L. 104-208, div. A, title II, §2224(c), Sept. 30, 1996, 110 Stat. 3009-415.
STATUTORY NOTES AND RELATED SUBSIDIARIES
CONGRESSIONAL FINDINGS Pub. L. 101-240, title IV, §402(a), Dec. 19, 1989, 103 Stat. 2501, 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."
- credit
- The term "credit" means the right granted by a person to a consumer to defer payment of a debt, incur debt and defer its payment, or purchase property or services and defer payment for such purchase.
- banking institution
- the term "banking institution" means-(A)(i) an insured bank as defined in section 1813(h) of this title or any subsidiary of an insured bank;(ii) an Edge Act corporation organized under section 25(a) 1 of the Federal Reserve Act [ 12 U.S.C. 611 et seq.]; and(iii) an Agreement Corporation operating under section 25 of the Federal Reserve Act [ 12 U.S.C. 601 et seq.]; 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 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 [ 12 U.S.C. 3101 et seq.]. The term "banking institution" shall not include a foreign bank.1 See References in Text note below.