
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: 12USC2202c]

 
                       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. 2202c. Review of restructuring denials


(a) Requirements for restructuring by System institutions

                    (1) Existing nonaccrual loans

        Within 9 months after a qualified lender is certified under 
    section 2278a-4 of this title, such lender shall review each loan 
    that has not been previously restructured and that is in nonaccrual 
    status on the date the lender is certified, and determine whether to 
    restructure the loan.

                      (2) New nonaccrual loans

        Within 6 months after a loan made by a certified lender is 
    placed in nonaccrual status, the lender shall determine whether to 
    restructure the loan.

(b) Special asset groups

                          (1) Establishment

        Within 30 days after a qualified lender in a district is 
    certified to issue preferred stock under section 2278b-7 of this 
    title, the Farm Credit Bank board shall establish a special asset 
    group that shall review each determination by the lender not to 
    restructure a loan.

                       (2) Restructuring plan

        If a special asset group determines under paragraph (1) that a 
    loan under review should be restructured, the group shall prescribe 
    a restructuring plan for the loan that the qualified lender shall 
    implement.

(c) National Special Asset Council

                          (1) Establishment

        A National Special Asset Council shall be established by the 
    Assistance Board to--
            (A) monitor compliance with the restructuring requirements 
        of this section by qualified lenders certified to issue 
        preferred stock under section 2278b-7 of this title, and by 
        special asset groups established under subsection (b) of this 
        section; and
            (B) review a sample of determinations made by each special 
        asset group that a loan will not be restructured.

                     (2) Review of determination

        The National Special Asset Council shall review a sufficient 
    number of determinations made by each special asset group to 
    foreclose on any loan to assure the Council that such group is 
    complying with this section. With regard to each determination 
    reviewed, the Council shall make an independent judgment on the 
    merits of the decision to foreclose rather than restructure the 
    loan.

                          (3) Noncompliance

        If the National Special Asset Council determines that any 
    special asset group is not in substantial compliance with this 
    section, the Council shall notify the group of the determination, 
    and may take such other action as the Council considers necessary to 
    ensure that such group complies with this section.

(d) Report

    With respect to determinations by a special asset group that a loan 
will not be restructured, the special asset group shall submit to the 
National Special Asset Council a report evaluating the loan and the 
basis for the determination that the loan should not be restructured.

(e) Restructuring factors

    In determining whether a loan is to be restructured, the National 
Special Asset Council, each special asset group, and each qualified 
lender certified under section 2278a-4 of this title shall take into 
consideration the factors specified in section 2202a(d)(1) of this 
title.

(Pub. L. 92-181, title IV, Sec. 4.14C, as added Pub. L. 100-233, title 
I, Sec. 102(a), Jan. 6, 1988, 101 Stat. 1578; amended Pub. L. 100-399, 
title I, Sec. 102(h), Aug. 17, 1988, 102 Stat. 990.)


                               Amendments

    1988--Subsec. (b)(1). Pub. L. 100-399 substituted ``Farm Credit Bank 
board'' for ``district board of such district''.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-399 effective immediately after amendment 
made by section 401 of Pub. L. 100-233, which was effective 6 months 
after Jan. 6, 1988, see section 1001(b) of Pub. L. 100-399, set out as a 
note under section 2002 of this title.

                  Section Referred to in Other Sections

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