
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC2201]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
     SUBCHAPTER IV--PROVISIONS APPLICABLE TO TWO OR MORE CLASSES OF 
                       INSTITUTIONS OF THE SYSTEM
 
             Part C--Rights of Borrowers; Loan Restructuring
 
Sec. 2201. 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 2202 of this 
    title.

(b) Distressed loans

    Each qualified lender that has a distressed loan outstanding that is 
subject to restructuring requirements under this chapter 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 2202a of this title;
        (2) if restructuring is denied, the reasons for such action; and
        (3) the borrower's right to review under section 2202 of this 
    title.

(Pub. L. 92-181, title IV, Sec. 4.13B, formerly Sec. 4.13, Dec. 10, 
1971, 85 Stat. 613, renumbered Sec. 4.13B and amended Pub. L. 99-205, 
title III, Secs. 301(a), 302, Dec. 23, 1985, 99 Stat. 1707, 1708; Pub. 
L. 100-233, title I, Sec. 105, Jan. 6, 1988, 101 Stat. 1579.)


                               Amendments

    1988--Pub. L. 100-233 amended section generally. Prior to amendment, 
section read as follows: ``Every applicant for a loan from an 
institution of the System shall be entitled to prompt written notice of 
action on his application, and, if the loan applied for is reduced or 
denied, the reason for such action, and of the applicant's right to 
review under section 2202 of this title.''
    1985--Pub. L. 99-205, Sec. 302, provided for a ``written'' notice 
and for the applicant's right to review under section 2202 of this 
title.


                    Effective Date of 1985 Amendment

    Amendment by Pub. L. 99-205 effective thirty days after Dec. 23, 
1985, see section 401 of Pub. L. 99-205, set out as a note under section 
2001 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 2202 of this title.
