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otherwise available for such assistance, shall be allocated at the same time; and

(6) provide that any amount of unexpended financial assistance under this chapter that is recaptured by the Board shall be reallocated by the Board to eligible financial institutions under this chapter.

(As amended Pub. L. 98-181, title IV, § 463(e), Nov. 30, 1983, 97 Stat. 1234; Pub. L. 98-479, title I, § 104(d)(2)(A), Oct. 17, 1984, 98 Stat. 2226.)

REFERENCES IN TEXT

The National Energy Conservation Policy Act, referred to in subsec. (b)(3), is Pub. L. 95-619, Nov. 9, 1978, 92 Stat. 3206, as amended. Title II of the National Energy Conservation Policy Act is classified generally to subchapter II (§ 8211 et seq.) of chapter 91 of Title 42, The Public Health and Welfare. Title VII of the Act, which was classified to subchapter IV (§ 8281 et seq.) of chapter 91 of Title 42, was repealed by Pub. L. 99-412, title II, § 201(a), Aug. 28, 1986, 100 Stat. 943. For complete classification of this Act to the Code, see Short Title note set out under section 8201 of Title 42 and Tables.

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ing appropriations of $100,000,000 for fiscal 1982, $200,000,000 for fiscal 1982, and $225,000,000 for fiscal 1983, for purchase and installation of solar energy systems, with spending limitations of $10,000,000, $7,500,000 and $7,500,000 to carry out section 3616 of this title for each of those fiscal years, respectively, was struck out.

LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS 1982, 1983, AND 1984

Pub. L. 97-35, title X, § 1071, Aug. 13, 1981, 95 Stat. 622, as amended by Pub. L. 98-181, title IV, § 463(f)(1), Nov. 30, 1983, 97 Stat. 1235, provided that: "In lieu of the amounts authorized by subsections (a) and (b) of section 522 of the Solar Energy and Energy Conservation Act of 1980 (12 U.S.C. 3620) to be appropriated for fiscal years 1982, 1983, and 1984, there is authorized to be appropriated for each of fiscal years 1982 and 1983 not to exceed $50,000,000, and for fiscal year 1984 not to exceed $35,000,000, to provide financial assistance under subtitle A of such Act [this chapter] for the purchase and installation of residential and commercial energy conserving improvements and of solar energy systems. Any funds appropriated pursuant to the preceding authorization may remain available without fiscal year limitation."

CHAPTER 38-MULTIFAMILY MORTGAGE FORECLOSURE

§ 3703. Applicability

Multifamily mortgages held by the Secretary encumbering real estate located in any State may be foreclosed by the Secretary in accordance with this chapter, or pursuant to other foreclosure procedures available, at the option of the Secretary. If the Secretary forecloses on any such mortgage pursuant to such other foreclosure procedures available, the provisions of section 3706(b) of this title may be applied at the discretion of the Secretary.

(As amended Pub. L. 98-181, title IV, § 471, Nov. 30, 1983, 97 Stat. 1237.)

AMENDMENTS

1983-Pub. L. 98-181 inserted provision relating to application of section 3706(b) of this title in event of foreclosure under other foreclosure procedures.

§ 3706. Notice of default and foreclosure sale; condition and term of sale

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 3703, 3708 of this title.

CHAPTER 39-ALTERNATIVE MORTGAGE TRANSACTIONS

AMENDMENTS

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1983-Subsec. (a). Pub. L. 98-181, § 463(f)(2)(A), substituted "and of solar energy systems such sums as may be necessary for fiscal year 1985" for provisions formerly designated as pars. (1) to (4) authorizing appropriations of $200,000,000 for fiscal 1981, $625,000,000 for fiscal 1982, $800,000,000 for fiscal 1983 and $875,000,000 for fiscal 1984, with spending limitations of $10,000,000, $7,500,000, $7,500,000, and $7,500,000 to carry out section 3616 of this title for each of those fiscal years, respectively.

Subsecs. (b), (c). Pub. L. 98-181, § 463(f)(2)(B), redesignated subsec. (c) as (b). Former subsec. (b), authoriz

(a) In general.

(b) Regulations.

(c) Enforcement.

(d) Definitions.

(e) Effective date.

§ 3802. Definitions

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1715z-20 of this title.

§ 3803. Alternative mortgage authority

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1715z-20, 3804 of this title.

§ 3804. Applicability of preemption provisions

(a) The provisions of section 3803 of this title shall not apply to any alternative mortgage transaction in any State made on or after the effective date (if such effective date occurs on or after October 15, 1982, and prior to a date three years after October 15, 1982) of a State law or a certification that the voters of such State have voted in favor of any provision, constitutional or otherwise, which states explicitly and by its terms that such State does not want the preemption provided in section 3803 of this title to apply with respect to alternative mortgage transactions (or to any class or type of alternative mortgage transaction) subject to the laws of such State, except that section 3803 of this title shall continue to apply to

[See main edition for text of (1) and (2); (b)] (As amended Pub. L. 98-181, title IV, § 472, Nov. 30, 1983, 97 Stat. 1237.)

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AMENDMENTS

1983-Subsec. (a). Pub. L. 98-181 inserted "(or to any class or type of alternative mortgage transaction)".

3905. 3906.

§ 3806. Adjustable rate mortgage caps (a) In general

Any adjustable rate mortgage loan originated by a creditor shall include a limitation on the maximum interest rate that may apply during the term of the mortgage loan. (b) Regulations

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public.

(c) Regulations and orders of Federal banking agencies.

Foreign loan evaluations.

(a) Projects requiring an economic feasibility evaluation; content of evaluation.

(b) Review of evaluation by Federal

banking agencies.

(c) Other statutory authorities applicable.

General authorities.

(a) Rules and regulations.

(b) Systems uniformity.

(c) Existing authorities.

(d) Civil penalties; assessment and collection.

Audit authority of General Accounting Office.

(a) Scope of audit.

(b) Limits on disclosure.

(c) Records, property, workpapers, correspondence, and documents; accessability.

Equal representation for Federal Deposit Insurance Corporation. Reports.

§ 3901. Congressional declaration of policy

(a)(1) It is the policy of the Congress to assure that the economic health and stability of the United States and the other nations of the world shall not be adversely affected or threatened in the future by imprudent lending practices or inadequate supervision.

(2) This shall be achieved by strengthening the bank regulatory framework to encourage prudent private decisionmaking and by enhanc

ing international coordination among bank regulatory authorities.

(b) The Federal banking agencies shall consult with the banking supervisory authorities of other countries to reach understandings aimed at achieving the adoption of effective and consistent supervisory policies and practices with respect to international lending.

(Pub. L. 98-181, title IX, § 902, Nov. 30, 1983, 97 Stat. 1278.)

SHORT TITLE

Section 901 of title IX of Pub. L. 98-181 provided that: "This title [enacting this chapter] may be cited as the International Lending Supervision Act of 1983'."

§ 3902. Definitions

For purposes of this chapter

(1) the term "appropriate Federal banking agency" has the same meaning given such term in section 1813(q) of this title, except that for purposes of this chapter such term means the Board of Governors of the Federal Reserve System for

(A) bank holding companies and any nonbank subsidiary thereof;

organized

(B) Edge Act corporations under section 25(a) of the Federal Reserve Act [12 U.S.C. 611 et seq.]; and

(C) Agreement Corporations operating under section 25 of the Federal Reserve Act [12 U.S.C. 601 et seq.]; and

(2) 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) 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 eq.). The term "banking institution" shall not include a foreign bank.

(Pub. L. 98-181, title IX, § 903, Nov. 30, 1983, 97 Stat. 1278.)

REFERENCES IN TEXT

Section 25(a) of the Federal Reserve Act, referred to in pars. (1) and (2)(A), is classified to subchapter II (§ 611 et seq.) of chapter 6 of this title. Section 25 of the Federal Reserve Act is classified to subchapter I (§ 601 et seq.) of chapter 6 of this title.

The International Banking Act of 1978, referred to in par. (2)(B), is Pub. L. 95-369, Sept. 17, 1978, 92 Stat. 607, which enacted sections 347d, 611a, and 3101 to 3108 of this title, amended sections 72, 378, 614, 615, 618, 619, 1813, 1815, 1817, 1818, 1820, 1821, 1822, 1823, 1828, 1829b, 1831b, and 1841 of this title, and enacted provisions set out as notes under sections 36, 247, 601, 611a, and 3101 of this title. For definitions, see section 3101 of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 3101 of this title and Tables.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1464, 1730, 3910 of this title.

§ 3903. Strengthened supervision of international lending

(a) Each appropriate Federal banking agency shall evaluate banking institution foreign country exposure and transfer risk for use 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.

(Pub. L. 98-181, title IX, § 904, Nov. 30, 1983, 97 Stat. 1279.)

§ 3904. Reserves

(a) Establishment and maintenance of special re

serves

(1) Each appropriate Federal banking agency shall 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 indebtedness as indicated by such factors, among others, as

(i) a failure by such public or private borrowers to make full interest payments 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) Accommodation of potential losses on foreign loans by United States banks

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 3907 of this title (regarding capital adequacy), ensure that the capital and reserve positions of United States banks are adequate to accommodate potential losses on their foreign loans.

(c) Regulations and orders of Federal banking agencies

The appropriate Federal banking agencies shall promulgate regulations or orders neces

sary to implement this section within one hundred and twenty days after November 30, 1983. (Pub. L. 98-181, title IX, § 905, Nov. 30, 1983, 97 Stat. 1279.)

§ 3905. Accounting for fees on international loans

(a)(1) In order to avoid excessive debt service burdens on 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.

(B) The requirement of paragraph (1) shall take effect on November 30, 1983.

(b)(1) Subject to subsection (a) of this section, the appropriate Federal banking agencies shall promulgate regulations for accounting for agency, commitment, management and other fees charged by a banking institution in connection with an international loan.

(2) Such regulations shall establish the accounting treatment of such fees for regulatory, supervisory, and disclosure purposes to assure that the appropriate portion of such fees is accrued in income over the effective life of each such loan.

(3) The appropriate Federal banking agencies shall promulgate regulations or orders necessary to implement this subsection within one hundred and twenty days after November 30, 1983.

(Pub. L. 98-181, title IX, § 906, Nov. 30, 1983, 97 Stat. 1279.)

§ 3906. Collection and disclosure of international lending data

(a) Submission of information to Federal banking agencies

Each appropriate Federal banking agency shall require, by regulation, each banking institution with foreign country exposure to submit, no fewer than four times each calendar year, information regarding such exposure in a format prescribed by such regulations.

(b) Disclosure of information to the public.

Each appropriate Federal banking agency shall require, by regulation, banking institutions to disclose to the public information regarding material foreign country exposure in relation to assets and to capital.

(c) Regulations and orders of Federal banking agencies

The appropriate Federal banking agencies shall promulgate regulations or orders necessary to implement this section within one hundred and twenty days after November 30, 1983. (Pub. L. 98-181, title IX, § 907, Nov. 30, 1983, 97 Stat. 1280.)

§ 3907. Capital adequacy

(a)(1) Each appropriate Federal banking agency shall cause banking institutions to

achieve and maintain adequate capital by establishing minimum levels of capital for such banking institutions and by using such other methods as the appropriate Federal banking agency deems appropriate.

(2) Each appropriate Federal banking agency shall have the authority to establish such minimum level of capital for a banking institution as the appropriate Federal banking agency, in its discretion, deems to be necessary or appropriate in light of the particular circumstances of the banking institution.

(b)(1) Failure of a banking institution to maintain capital at or above its minimum level as established pursuant to subsection (a) of this section may be deemed by the appropriate Federal banking agency, in its discretion, to constitute an unsafe and unsound practice within the meaning of section 1818 of this title.

(2)(A) In addition to, or in lieu of, any other action authorized by law, including paragraph (1), the appropriate Federal banking agency may issue a directive to a banking institution that fails to maintain captial at or above its required level as established pursuant to subsection (a) of this section.

(B)(i) Such directive may require the banking institution to submit and adhere to a plan acceptable to the appropriate Federal banking agency describing the means and timing by which the banking institution shall achieve its required capital level.

(ii) Any such directive issued pursuant to this paragraph, including plans submitted pursuant thereto, shall be enforceable under the provisions of section 1818(i) of this title to the same extent as an effective and outstanding order issued pursuant to section 1818(b) of this title which has become final.

(3)(A) Each appropriate Federal banking agency may consider such banking institution's progress in adhering to any plan required under this subsection whenever such banking institution, or an affiliate thereof, or the holding company which controls such banking institution, seeks the requisite approval of such appropriate Federal banking agency for any proposal which would divert earnings, diminish capital, or otherwise impede such banking institution's progress in achieving its minimum capital level.

(B) Such appropriate Federal banking agency may deny such approval where it determines that such proposal would adversely affect the ability of the banking institution to comply with such plan.

(C) The Chairman of the Board of Governors of the Federal Reserve System and the Secretary of the Treasury shall encourage governments, central banks, and regulatory authorities of other major banking countries to work toward maintaining and, where appropriate, strengthening the capital bases of banking institutions involved in international lending. (Pub. L. 98-181, title IX, § 908, Nov. 30, 1983, 97 Stat. 1280.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1464, 1730, 3904, 3912 of this title.

§ 3908. Foreign loan evaluations

(a) Projects requiring an economic feasibility evaluation; content of evaluation

(1) In any case in which one or more banking institutions extend credit, whether by loan, lease, guarantee, or otherwise, which individually or in the aggregate exceeds $20,000,000, to finance any project which has as a major objective the construction or operation of any mining operation, any metal or mineral primary processing operation, any fabricating facility or operation, or any metal-making operations (semi and finished) located outside the United States or its territories and possessions, a written economic feasibility evaluation of such foreign project shall be prepared and approved in writing by a senior official of the banking institution, or, if more than one banking institution is involved, the lead banking institution, prior to the extension of such credit. (2) Such evaluation shall

(A) take into account the profit potential of the project, the impact of the project on world markets, the inherent competitive advantages and disadvantages of the project over the entire life of the project, and the likely effect of the project upon the overall long-term economic development of the country in which the project is located; and

(B) consider whether the extension of credit can reasonably be expected to be repaid from revenues generated by such foreign project without regard to any subsidy, as defined in international agreements, provided by the government involved or any instrumentality of any country.

(b) Review of evaluation by Federal banking agencies Such economic feasibility evaluations shall be reviewed by representatives of the appropriate Federal banking agencies whenever an examination by such appropriate Federal banking agency is conducted.

(c) Other statutory authorities applicable

(1) The authorities of the Federal banking agencies contained in section 1818 of this title and in section 3909 of this title, except those contained in section 3909(d) of this title, shall be applicable to this section.

(2) No private right of action or claim for relief may be predicated upon this section. (Pub. L. 98-181, title IX, § 909, Nov. 30, 1983, 97 Stat. 1281.)

§ 3909. General authorities

(a) Rules and regulations

(1) The appropriate Federal banking agencies are authorized to interpret and define the terms used in this chapter, and each appropriate Federal banking agency shall prescribe rules or regulations or issue orders as necessary to effectuate the purposes of this chapter and to prevent evasions thereof.

(2) The appropriate Federal banking agency is authorized to apply the provisions of this chapter to any affiliate of an insured bank, but only to affiliates for which it is the appropriate Federal banking agency, in order to promote uniform application of this chapter or to prevent evasions thereof.

(3) For purposes of this section, the term "affiliate" shall have the same meaning as in section 371c of this title, except that the term "member bank" in such section shall be deemed to refer to an "insured bank", as such term is used in section 1813(h) of this title.

(b) Systems uniformity

The appropriate Federal banking agencies shall establish uniform systems to implement the authorities provided under this chapter. (c) Existing authorities

(1) The powers and authorities granted in this chapter shall be supplemental to and shall not be deemed in any manner to derogate from or restrict the authority of each appropriate Federal banking agency under section 1818 of this title or any other law including the authority to require additional capital or reserves.

(2) Any such authority may be used by any appropriate Federal banking agency to ensure compliance by a banking institution with the provisions of this chapter and all rules, regulations, or orders issued pursuant thereto. (d) Civil penalties; assessment and collection

(1) Any banking institution which violates, or any officer, director, employee, agent, or other person participating in the conduct of the affairs of such banking institution, who violates any provision of this chapter, or any rule, regulation, or order, issued under this chapter, shall forfeit and pay a civil penalty of not more than $1,000 per day for each day during which such violation continues.

(2) Such violations shall be deemed to be a violation of a final order under section 1818(i)(2) of this title and the penalty shall be assessed and collected by the appropriate Federal banking agency under the procedures established by, and subject to the rights afforded to parties in, such section.

(Pub. L. 98-181, title IX, § 910, Nov. 30, 1983, 97 Stat. 1282.)

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 3908 of this title.

§ 3910. Audit authority of General Accounting Office (a) Scope of audit

(1) Under regulations of the Comptroller General, the Comptroller General shall audit the appropriate Federal banking agencies (as defined in section 3902 of this title), but may carry out an onsite examination of an open insured bank or bank holding company only if the appropriate Federal banking agency has consented in writing.

(2) An audit under this subsection may include a review or evaluation of the international regulation, supervision, and examination activities of the appropriate Federal banking agency, including the coordination of such activities with similar activities of regulatory authorities of a foreign government or international organization.

(3) Audits of the Federal Reserve Board and Federal Reserve banks may not include

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