§3905 Accounting for Fees on International Loans

Summary

To protect debtor countries from heavy debt costs, banks must not charge a restructuring fee higher than the administrative cost unless they spread that extra fee over the loan’s effective life. Federal banking agencies must create rules to enforce this, and that rule starts on November 30, 1983. The agencies must also write accounting rules for agency, commitment, management, and other fees on international loans. Those rules must make banks record the proper share of those fees as income over each loan’s effective life. The agencies must issue these rules within 120 days after November 30, 1983.