Page:United States Statutes at Large Volume 97.djvu/1311

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1279 tional Banking Act of 1978. The term "banking institution' shall not include a foreign bank. 12 USC 3101 note. STRENGTHENED SUPERVISION OF INTERNATIONAL LENDING SEC. 904. (a) Each appropriate Federal banking agency shall evalu- ate banking institution foreign country exposure and transfer risk for usc 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. 12 USC 3903. RESERVES SEC. 905. (a)(1) Each appropriate Federal banking agency shall 12 USC 3904. 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 indebt- edness as indicated by such factors, among others, as— (i) a failure by such public or private borrowers to make full interest pa)Tnents 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 Post, p. 1280. 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. regulations or orders necessary to implement this section within one hundred and twenty days after the date of the enactment of this title. ACCOUNTING FOR FEES ON INTERNATIONAL LOANS SEC. 906. (a)(1) In order to avoid excessive debt service burdens on 12 USC 3905. 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.

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