Page:United States Statutes at Large Volume 101 Part 3.djvu/279

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1577

constitute the restructuring policy of each qualified lender within the district. "(2) CONTENTS OF POLICY.—The policy established under paragraph (1) shall include an explanation of— "(A) the procedure for submitting an application for restructuring; and ,i,, "(B) the right of borrowers with distressed loans to seek ' ' review by a credit review committee in accordance with section 4,14 of a denial of an application for restructuring. "(3) SUBMISSION OF POLICY TO FCA.—Each district board shall submit the policy of the district governing the treatment of distressed loans under this section to the Farm Credit Administration. Notwithstanding the duty imposed by the preceding sentence, the other duties imposed by this section shall take effect on the date of the enactment of this section. "(h) REPORTS.—During the 5-year period beginning on the date of the enactment of this section, each qualified lender shall submit semiannual reports to the Farm Credit Administration containing— "(1) the results of the review of distressed loans of the lender; and "(2) the financial effect of loan restructurings and liquidations on the lender. "(i) CoMPUANCE.—The Farm Credit Administration may issue a directive requiring compliance with any provision of this section to any qualified lender that fails to comply with such provision. "(j) PERMITTED FORECLOSURES.—This section shall not be construed to prevent any qualified lender from enforcing any contractual provision that allows the lender to foreclose a loan, or from taking such other lawful action as the lender deems appropriate, if the lender has reasonable grounds to believe that the loan collateral will be destroyed, dissipated, consumed, concealed, or permanently removed from the State in which the collateral is located. "(k) APPLICATION OF SECTION.—The time limitation prescribed in subsection (b)(2), and the requirements of subsection (c), shall not apply to a loan that became a distressed loan before the date of the enactment of this section if the borrower and lender of the loan are in the process of negotiating loan restructuring with respect to the loan.

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"(1) ASSISTANCE IN RESTRUCTURING.—Each Federal intermediate

credit bank, on request of any production credit association, may assist the association in restructuring loans under this section. "SEC. 4.14B. EFFECT OF RESTRUCTURING ON BORROWER STOCK.

"(a) FEDERAL LAND BANK.—If a Federal land bank forgives and writes off, under section 4.14A, any of the principal outstanding on a loan made to any borrower, the Federal land bank association of which the borrower is a member and stockholder shall cancel the same dollar amount of borrower stock held by the borrower in respect of the loan, up to the total amount of such stock, and the Federal land bank shall retire an equal amount of stock owned by the Federal land bank association. "(b) PRODUCTION CREDIT ASSOCIATION.—If a production credit association forgives and writes off, under section 4.14A, any of the principal outstanding on a loan made to any borrower, the association shall cancel the same dollar amount of borrower stock held by the borrower in respect of the loan, up to the total amount of such stock.

12 USC 2202b.

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