
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC2202]

 
                       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. 2202. Reconsideration of actions


(a) Credit review committees

                           (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 section 2201 of this title of 
    a decision to deny or reduce the loan applied for 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 before the credit review committee.

                    (2) Denials of restructuring

        A borrower of a loan from a qualified lender that has received 
    notice, under section 2201 of this title, 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)(1) or (2) of this section, 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).

                      (2) Arrangement and cost

        Within 30 days after a request for an appraisal under paragraph 
    (1), the credit review committee shall present the borrower with a 
    list of three appraisers approved by the appropriate qualified 
    lender from which the borrower shall select an appraiser to conduct 
    the appraisal the cost of which shall be borne by the borrower, and 
    shall consider the results of such appraisal in any final 
    determination with respect to the loan.

                        (3) Copy to borrower

        A copy of any appraisal made under this subsection shall be 
    provided to the borrower.

                      (4) Additional collateral

        An independent appraisal shall be permitted if additional 
    collateral for a loan is demanded by the qualified lender when 
    determining whether to restructure the loan.

(e) Notification of applicant

    Promptly after a review by the credit review committee, the 
committee shall notify the applicant or borrower, as the case may be, in 
writing of the decision of the committee and the reasons for the 
decision.

(Pub. L. 92-181, title IV, Sec. 4.14, Dec. 10, 1971, 85 Stat. 613; Pub. 
L. 99-205, title III, Sec. 303, Dec. 23, 1985, 99 Stat. 1708; Pub. L. 
100-233, title I, Sec. 106, title VIII, Sec. 805(s), Jan. 6, 1988, 101 
Stat. 1580, 1716; Pub. L. 100-399, title I, Sec. 103, title VII, 
Sec. 702(b), Aug. 17, 1988, 102 Stat. 990, 1006.)


                               Amendments

    1988--Pub. L. 100-233, Sec. 805(s), which directed amendment of this 
section by substituting ``committees'' for ``committee(s)'', ``2201'' 
for ``2199'', and ``review'' for ``reviews'', was repealed by Pub. L. 
100-399, Sec. 702(b). See Construction of 1988 Amendment note below.
    Pub. L. 100-233, Sec. 106, amended section generally. Prior to 
amendment, section read as follows: ``The board of directors of each 
Farm Credit System institution shall establish one or more credit review 
committee(s), which shall include farmer board respresentation. [sic] 
Any loan applicant who has received written notice, under section 2199 
of this title, of a decision to deny or reduce the loan applied for, if 
the applicant so requests in writing within thirty days after receiving 
such notice, may obtain a review of such decision in person before the 
credit review committee. When a loan applicant requests review of an 
adverse credit decision, a majority of persons serving on such reviews 
committee must be persons who were not involved in making the adverse 
decision. Promptly after any such review, the applicant shall be 
notified in writing of the credit review committee's decision and the 
reasons therefor.''
    Subsec. (b)(1). Pub. L. 100-399, Sec. 103(a), substituted ``before 
the'' for ``by a''.
    Subsec. (d)(1). Pub. L. 100-399, Sec. 103(b), inserted ``or (2)''.
    1985--Pub. L. 99-205, in amending section generally, substituted 
provisions respecting reconsideration of action on loan application for 
prior reconsideration provisions which read as follows: ``Any applicant 
who has reason to believe that the action on his application by an 
association failed to take into account facts pertinent to his 
application, or has misinterpreted or failed to properly apply the 
applicable law or rules and regulations governing his application, may, 
if he so requests in writing within thirty days of the date of that 
notice, request an informal hearing on his application and the action of 
the association in reduction or denial thereof, or the reason for such 
action, in person before the loan committee or officer or employee 
thereof authorized to act on applications under section 2033(11) or 
2093(18) of this title. Promptly after such a hearing, he shall be 
notified of the decision upon reconsideration and the reasons 
therefor.''


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-399 effective as if enacted immediately 
after enactment of Pub. L. 100-233, which was approved Jan. 6, 1988, see 
section 1001(a) of Pub. L. 100-399, set out as a note under section 2002 
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.


                     Construction of 1988 Amendment

    Section 702(b) of Pub. L. 100-399 provided that section 805(s) of 
Pub. L. 100-233, cited as a credit to this section, is repealed and that 
this section shall be applied and administered as if such section had 
not been enacted.

                  Section Referred to in Other Sections

    This section is referred to in sections 2201, 2202a, 2202d, 2279aa-9 
of this title.
