Notes on 12 U.S.C. § 3901 : US Code - Notes

Search Notes on 12 U.S.C. § 3901 : US Code - Notes

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