Page:United States Statutes at Large Volume 101 Part 3.djvu/282

 101 STAT. 1580

PUBLIC LAW 100-233—JAN. 6, 1988

"SEC. 4.13B. NOTICE OF ACTION ON APPLICATION. "(a) LOAN APPLICATIONS.—Each qualified lender to which a person

has applied for a loan shall provide the person with prompt written notice of— "(1) the action on the application; "(2) if the loan applied for is reduced or denied, the reasons for such action; and "(3) the applicant's right to review under section 4,14. "(b) DISTRESSED LOANS.—Each qualified lender that has a distressed loan outstanding that is subject to restructuring requirements under this Act shall provide, in accordance with regulations prescribed by the Farm Credit Administration, the borrower with prompt written notice of— "(1) any action taken with respect to restructuring the loan under section 4.14A; "(2) if restructuring is denied, the reasons for such action; and "(3) the borrower's right to review under section 4.14.". SEC. 106. RECONSIDERATION OF ACTIONS.

Section 4.14 (12 U.S.C. 2202) is amended to read as follows: "SEC. 4.14. RECONSIDERATION OF ACTIONS. "(a) CREDIT REVIEW COMMITTEES.—

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"(1) IN GENERAL.—The board of directors of each qualified lender shall establish one or more credit review committees, which shall include farmer board representation. "(2) MEMBERSHIP.—In no case shall a loan officer involved in the initial decision on a loan serve on the credit review committee when the committee reviews such loan. "(b) REVIEW OF DECISIONS.— "(1) DENIALS OR REDUCTIONS.—Any applicant for a loan from a

qualified lender that has received a written notice issued under J section 4.13B of a decision to deny or reduce the loan applied for J may submit a written request, not later than 30 days after receiving a notice denying or reducing the amount of the loan application, to obtain a review of the decision by a credit review committee. "(2) DENIALS OF RESTRUCTURING.—A borrower of a loan from a 1 qualified lender that has received notice, under section 4.13B, of a decision to deny loan restructuring with respect to a loan made to the borrower, if the borrower so requests in writing within 7 days after receiving such notice, may obtain a review of such decision in person before the credit review committee. "(c) PERSONAL APPEARANCE.—An applicant for a loan or for restructuring, who is entitled to and has requested a review under this section, may appear in person before the credit review committee, and may be accompanied by counsel or by any other representative of such person's choice, to seek a reversal of the decision on the application under review. (d) INDEPENDENT APPRAISAL.—

"(1) IN GENERAL.—An appeal filed with a credit review committee under this section may include, as a part of the request for a review of the decision filed under subsection (b)(D, a request for an independent appraisal, by an accredited appraiser, of any interests in property securing the loan (other than the stock or participation certificates of the qualified lender held by the borrower).

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