Page:United States Statutes at Large Volume 105 Part 2.djvu/839

 PUBLIC LAW 102-233—DEC. 12, 1991 105 STAT. 1791 exceed 75 percent of the appraised value of the property, and (c) the ratio of annual net operating income generated by the property (before payment ,1 of any debt service on the loan) to annual debt service on the loan is not less than 115 percent; (iii) under which— (I) amortization of principal and interest occurs over a period of not more than 30 years; (II) the minimum maturity for repayment of principal is not less than 7 years; and (III) timely payment of all principal and interest, in accordance with the terms of the loan, occurs for a period of not less than 1 year; and (iv) that meets any other underwriting characteristics that the appropriate Federal banking agency may establish, consistent with the purposes of the minimum acceptable capital requirements to maintain the safety and soundness of financial institutions. (2) SALE PURSUANT TO PRO RATA LOSS SHARING ARRANGE- MENTS.— Not later than the expiration of the 120-day period beginning on the date of this Act, each Federal banking agency shall amend the regulations and guidelines of the agency establishing minimum acceptable capital levels to provide that any loan fully secured by a first lien on a multifamily housing property that is sold subject to a pro rata loss sharing arrangement by an institution subject to the jurisdiction of the agency shall be treated as sold to the extent that loss is incurred by the purchaser of the loan. For purposes of this paragraph, the term "pro rata loss sharing arrangement" means an agreement providing that the purchaser of a loan shares in any loss incurred on the loan with the selling institution on a pro rata basis. (3) SALE PURSUANT TO OTHER ARRANGEMENTS FOR LOSS. —Not later than the expiration of the 180-day period beginning on the date of the enactment of this Act, each Federal banking agency shall amend the regulations and guidelines of the agency establishing minimum acceptable capital levels to take into account other loss sharing arrangements, in connection with the sale by an institution subject to the jurisdiction of the agency of any loan that is fully secured by a first lien on multifamily housing property, for purposes of determining the extent to which such loans shall be treated as sold. For purposes of this paragraph, the term "other loss sharing arrangement" means an agreement providing that the purchaser of a loan shares in any loss incurred on the loan with the selling institution on other than a pro rata basis. (c) APPROPRIATE FEDERAL BANKING AGENCY.— For purposes of this section, the term "Federal banking agency" means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, and the Director of the Office of Thrift Supervision. SEC. 619. APPLICABILITY. 12 USC 1441a The amendments made by this title shall not apply to any eligible "° ' residential property or eligible condominium property of the Resolution Trust Corporation, that is subject to an agreement for sale

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