-CITE-

12 USC CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

.

-HEAD-

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-MISC1-

Sec.

3901. Congressional declaration of policy.

3902. Definitions.

3903. Strengthened supervision of international lending.

3904. Reserves.

(a) Establishment and maintenance of special

reserves.

(b) Accommodation of potential losses on foreign

loans by United States banks.

(c) Regulations and orders of Federal banking

agencies.

3904a. Additional reserve requirements.

(a) In general.

(b) Determination of institutional exposure to risk.

(c) Timing and report.

(d) ''Highly indebted country'' defined.

3905. Accounting for fees on international loans.

3906. Collection and disclosure of international lending data.

(a) Submission of information to Federal banking

agencies.

(b) Disclosure of information to the public.

(c) Regulations and orders of Federal banking

agencies.

3907. Capital adequacy.

3908. 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.

3909. General authorities.

(a) Rules and regulations.

(b) Systems uniformity.

(c) Existing authorities.

(d) Civil penalties; assessment and collection.

3910. Audit authority of General Accounting Office.

(a) Scope of audit.

(b) Limits on disclosure.

(c) Records, property, workpapers, correspondence,

and documents; accessibility.

3911. Equal representation for Federal Deposit Insurance

Corporation.

3912. Repealed.

-CITE-

12 USC Sec. 3901 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-HEAD-

Sec. 3901. Congressional declaration of policy

-STATUTE-

(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

enhancing 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.

-SOURCE-

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

-MISC1-

SHORT TITLE OF 1989 AMENDMENT

Pub. L. 101-240, title IV, Sec. 401, Dec. 19, 1989, 103 Stat.

2501, provided that: ''This title (enacting section 3904a of this

title and enacting provisions set out as notes under section 3904a

of this title and section 2291 of Title 22, Foreign Relations and

Intercourse) may be cited as the 'Foreign Debt Reserving Act of

1989'.''

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'.''

ENCOURAGEMENT OF DEBT-FOR-DEVELOPMENT SWAPS THROUGH LOCAL CURRENCY

REPAYMENT

Pub. L. 101-240, title V, Sec. 531, Dec. 19, 1989, 103 Stat.

2513, provided that:

''(a) Statement of Policy. - It is the sense of the Congress that

-

''(1) debt-for-development swaps, where payment is made in

local currency at the free market rate, serve a useful purpose by

providing banking institutions with constructive opportunities

for the reduction of the external debt of highly indebted

developing countries in a process that involves the participation

of private, nonprofit groups in providing a stimulus to the

economic and social development of such developing countries;

''(2) debt-for-development swaps provide highly indebted

developing countries with a creative method of reducing external

debt burdens, while promoting their economic growth and

restructuring objectives;

''(3) banking institutions should give careful consideration to

engaging in such swaps as one means of strengthening overall loan

portfolios through the reduction of high external debt burdens

while expanding economic opportunities through private sector

initiatives; and

''(4) in order to avoid any bias against such swaps in the

regulatory framework applicable to the financial reporting of

banking institutions, where payment is made in local currency at

the free market rate, appropriate recognition of the fair market

exchange value of the currency so received should be made.

''(b) Notification Relating to Local Currency Repayment Through

Debt-for-Development Swaps. - Before the end of the 6-month period

beginning on the date of the enactment of this section (Dec. 19,

1989), each appropriate Federal banking agency shall adopt uniform

guidelines that will effectuate the policy set forth in subsection

(a) concerning the regulatory framework and accounting treatment of

debt-for-development swaps involving repayment in local currency at

the free market rate. For the purpose of such guidelines, the

impact of such swaps on reported loan loss reserves shall be

determined by valuing currency received in such swaps at fair

market exchange value.

''(c) Definitions. - As used in this section:

''(1) Appropriate federal banking agency. - The term

'appropriate Federal banking agency' has the meaning given such

term in section 903(1) of the International Lending Supervision

Act of 1983 (12 U.S.C. 3902(1)).

''(2) Banking institution. - The term 'banking institution' has

the meaning given such term in section 903(2) of the

International Lending Supervision Act of 1983.

''(3) Debt-for-development swap. - The term

'debt-for-development swap' has the meaning given such term in

section 1608(b)(2) of the International Financial Institutions

Act (22 U.S.C. 262p-4c(b)(2)).

''(4) Highly indebted country. - The term 'highly indebted

country' means any country designated as a 'Highly Indebted

Country' in the annual World Debt Tables most recently published

by the International Bank for Reconstruction and Development

before the date of the enactment of this section (Dec. 19,

1989).''

-CITE-

12 USC Sec. 3902 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-HEAD-

Sec. 3902. Definitions

-STATUTE-

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;

(B) Edge Act corporations organized under section 25(a)

(FOOTNOTE 1) of the Federal Reserve Act (12 U.S.C. 611 et

seq.); and

(FOOTNOTE 1) See References in Text note below.

(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)

(FOOTNOTE 1) 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 seq.). The term ''banking institution'' shall

not include a foreign bank.

-SOURCE-

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

-REFTEXT-

REFERENCES IN TEXT

Section 25(a) of the Federal Reserve Act, referred to in pars.

(1) and (2)(A), which is classified to subchapter II (Sec. 611 et

seq.) of chapter 6 of this title, was renumbered section 25A of

that act by Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19,

1991, 105 Stat. 2281. Section 25 of the Federal Reserve Act is

classified to subchapter I (Sec. 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 3111 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1464, 3910 of this title.

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12 USC Sec. 3903 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-HEAD-

Sec. 3903. Strengthened supervision of international lending

-STATUTE-

(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.

-SOURCE-

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

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12 USC Sec. 3904 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-HEAD-

Sec. 3904. Reserves

-STATUTE-

(a) Establishment and maintenance of special reserves

(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 necessary to implement this section within

one hundred and twenty days after November 30, 1983.

-SOURCE-

(Pub. L. 98-181, title IX, Sec. 905, Nov. 30, 1983, 97 Stat. 1279.)

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12 USC Sec. 3904a 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-HEAD-

Sec. 3904a. Additional reserve requirements

-STATUTE-

(a) In general

Each appropriate Federal banking agency shall review the exposure

to risk of United States banking institutions arising from the

medium- and long-term loans made by such institutions that are

outstanding to any highly indebted country. Each agency shall

provide direction to such institutions regarding additions to

general reserves maintained by each banking institution for

potential loan losses and special reserves required by such agency

arising from such review.

(b) Determination of institutional exposure to risk

In determining the exposure of an institution to risk for

purposes of subsection (a) of this section, the appropriate Federal

banking agency -

(1) shall determine whether any country exposure that is, and

has been for at least 2 years, rated in the category ''Other

Transfer Risk Problems'' or the category ''Substandard'' by the

Interagency Country Exposure Review Committee should be

reevaluated;

(2) may exempt, in full or in part, from reserve requirements

established pursuant to subsection (a) of this section, any loan

-

(A) to a country that enters into a debt reduction, debt

service reduction, or financing program with its bank creditors

that is supported by the International Bank for Reconstruction

and Development or the International Monetary Fund; or

(B) secured, in whole or in part, by appropriate collateral

for payment of interest or principal;

(3) take into account any other factors which bear on such

exposure and the particular circumstances of the institution; and

(4) shall consider as indicators of risk, where appropriate,

the average reserve levels maintained by or required of banking

institutions in foreign countries and secondary market prices for

such loans.

(c) Timing and report

(1) Determined by agency

Except as provided in paragraph (3), each appropriate Federal

banking agency shall determine the timing of any addition to

reserves required by subsection (a) of this section.

(2) Report

Each appropriate Federal banking agency shall include in each

report required to be made under section 3912(d) (FOOTNOTE 1) of

this title after 1989 a report on the actions taken pursuant to

this section.

(FOOTNOTE 1) See References in Text note below.

(3) Deadline

Each Federal agency required to undertake a review described in

subsection (a) of this section shall complete the review not

later than December 31, 1990.

(d) ''Highly indebted country'' defined

As used in this section, the term ''highly indebted country''

means any country designated as a ''Highly Indebted Country'' in

the annual World Debt Tables most recently published by the

International Bank for Reconstruction and Development before

December 19, 1989.

-SOURCE-

(Pub. L. 98-181, title IX, Sec. 905A, as added Pub. L. 101-240,

title IV, Sec. 402(b), Dec. 19, 1989, 103 Stat. 2501.)

-REFTEXT-

REFERENCES IN TEXT

Section 3912(d) of this title, referred to in subsec. (c)(2), was

repealed by Pub. L. 104-208, div. A, title II, Sec. 2224(c), Sept.

30, 1996, 110 Stat. 3009-415.

-MISC2-

CONGRESSIONAL FINDINGS

Section 402(a) of Pub. L. 101-240 provided that: ''The Congress

finds that -

''(1) since the adoption of the International Lending

Supervision Act of 1983 (12 U.S.C. 3901 et seq.), the credit

quality of loans by United States banking institutions to highly

indebted countries has deteriorated and the prospects for full

repayment of such loans have diminished;

''(2) in general during this period, the level of country

exposure and transfer risk associated with loans by United States

banking institutions to highly indebted countries has not been

adequately reflected in the reserve levels established by many

individual United States banking institutions or the reserve

requirements imposed by Federal banking agencies pursuant to such

Act;

''(3) during the last 3 years and particularly in recent

months, United States banking institutions have increased their

reserves for possible losses from loans to highly indebted

countries but such reserves remain, in some cases, significantly

lower than reserves established by banking institutions in a

number of foreign countries and may not be adequate to deal with

potential risks; and

''(4) in order to fulfill the purposes of such Act, the Federal

banking agencies should take a more active role in reviewing

reserve levels established by United States banking institutions

for potential losses from loans to highly indebted countries and

in requiring appropriate levels of both special and general

reserves to reflect the increased risk of such loans.''

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12 USC Sec. 3905 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-HEAD-

Sec. 3905. Accounting for fees on international loans

-STATUTE-

(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.

-SOURCE-

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

-CITE-

12 USC Sec. 3906 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-HEAD-

Sec. 3906. Collection and disclosure of international lending data

-STATUTE-

(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.

-SOURCE-

(Pub. L. 98-181, title IX, Sec. 907, Nov. 30, 1983, 97 Stat. 1280.)

-CITE-

12 USC Sec. 3907 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-HEAD-

Sec. 3907. Capital adequacy

-STATUTE-

(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 (FOOTNOTE 1) at or above its required level as

established pursuant to subsection (a) of this section.

(FOOTNOTE 1) So in original. Probably should be ''capital''.

(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.

-SOURCE-

(Pub. L. 98-181, title IX, Sec. 908, Nov. 30, 1983, 97 Stat. 1280.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

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

-CITE-

12 USC Sec. 3908 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-HEAD-

Sec. 3908. Foreign loan evaluations

-STATUTE-

(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.

-SOURCE-

(Pub. L. 98-181, title IX, Sec. 909, Nov. 30, 1983, 97 Stat. 1281.)

-CITE-

12 USC Sec. 3909 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-HEAD-

Sec. 3909. General authorities

-STATUTE-

(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.

-SOURCE-

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

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3908 of this title.

-CITE-

12 USC Sec. 3910 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-HEAD-

Sec. 3910. Audit authority of General Accounting Office

-STATUTE-

(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 -

(A) transactions for, or with, a foreign central bank,

government of a foreign country, or nonprivate international

financing organization;

(B) deliberations, decisions, or actions on monetary policy

matters, including discount window operations, reserves of member

banks, securities credit, interest on deposits, or open market

operations;

(C) transactions made under the direction of the Federal Open

Market Committee; or

(D) a part of a discussion or communication among or between

members of the Board of Governors of the Federal Reserve System

and officers and employees of the Federal Reserve System related

to subparagraphs (A) through (C) of this paragraph.

(b) Limits on disclosure

(1)(A) Except as provided in this subsection, an officer or

employee of the General Accounting Office may not disclose

information identifying an open bank, an open bank holding company,

or a customer of an open or closed bank or bank holding company.

(B) The Comptroller General may disclose information related to

the affairs of a closed bank or closed bank holding company

identifying a customer of the closed bank or closed bank holding

company only if the Comptroller General believes the customer had a

controlling influence in the management of the closed bank or

closed bank holding company or was related to or affiliated with a

person or group having a controlling influence.

(2) An officer or employee of the General Accounting Office may

discuss a customer, bank, or bank holding company with an official

of an appropriate Federal banking agency and may report an apparent

criminal violation to an appropriate law enforcement authority of

the United States Government or a State.

(3) This subsection does not authorize an officer or employee of

an appropriate Federal banking agency to withhold information from

a committee of the Congress authorized to have the information.

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

accessibility

(1)(A) To carry out this section, all records and property of or

used by an appropriate Federal banking agency, including samples of

reports of examinations of a bank or bank holding company the

Comptroller General considers statistically meaningful and

workpapers and correspondence related to the reports shall be made

available to the Comptroller General, including such records and

property pertaining to the coordination of international

regulation, supervisor and examination activities of an appropriate

Federal banking agency.

(B) The Comptroller General shall give each appropriate Federal

banking agency a current list of officers and employees to whom,

with proper identification, records and property may be made

available, and who may make notes or copies necessary to carry out

an audit.

(C) Each appropriate Federal banking agency shall give the

Comptroller General suitable and lockable offices and furniture,

telephones, and access to copying facilities.

(2) Except for the temporary removal of workpapers of the

Comptroller General that do not identify a customer of an open or

closed bank or bank holding company, an open bank, or an open bank

holding company, all workpapers of the Comptroller General and

records and property of or used by an appropriate Federal banking

agency that the Comptroller General possesses during an audit,

shall remain in such agency. The Comptroller General shall prevent

unauthorized access to records or property.

-SOURCE-

(Pub. L. 98-181, title IX, Sec. 911, Nov. 30, 1983, 97 Stat. 1282.)

-CITE-

12 USC Sec. 3911 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-HEAD-

Sec. 3911. Equal representation for Federal Deposit Insurance

Corporation

-STATUTE-

As one of the three Federal bank regulatory and supervisory

agencies, and as the insurer of the United States banks involved in

international lending, the Federal Deposit Insurance Corporation

shall be given equal representation with the Board of Governors of

the Federal Reserve System and the Office of the Comptroller of the

Currency on the Committee on Banking Regulations and Supervisory

Practices of the Group of Ten Countries and Switzerland.

-SOURCE-

(Pub. L. 98-181, title IX, Sec. 912, Nov. 30, 1983, 97 Stat. 1284.)

-CITE-

12 USC Sec. 3912 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 40 - INTERNATIONAL LENDING SUPERVISION

-HEAD-

Sec. 3912. Repealed. Pub. L. 104-208, div. A, title II, Sec.

2224(c), Sept. 30, 1996, 110 Stat. 3009-415

-MISC1-

Section, Pub. L. 98-181, title IX, Sec. 913, Nov. 30, 1983, 97

Stat. 1284; Pub. L. 100-418, title III, Sec. 3121(e), Aug. 23,

1988, 102 Stat. 1379, directed Secretary of the Treasury and

certain Federal banking agencies to report to Congress, no later

than 6 months after Nov. 30, 1983, regarding changes that could

improve international lending operations of banking institutions.

-CITE-