PRIA Logo™
Title 12, Banks and BankingRelease 119-102

§3905 Accounting for Fees on International Loans

Title 12 › CHAPTER 40 — INTERNATIONAL LENDING SUPERVISION › § 3905

Last updated Aug 21, 2026|Official source

Summary

Banks must not charge more than the actual administrative cost when they rearrange an international loan. If a bank wants to charge more, it must spread that extra fee out and collect it over the loan’s effective life. That rule takes effect on November 30, 1983. Federal banking agencies must write rules on how to count and report fees (such as agency, commitment, management, and similar fees) so the right part of those fees is recorded as income over each loan’s effective life. Those rules had to be issued within 120 days after November 30, 1983.

Full Legal Text

Title 12, §3905

Banks and Banking, Source: USLM XML via OLRC

(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), 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.

Reference

Citations & Metadata

Citation

12 U.S.C. § 3905

Title 12, Banks and Banking

Last Updated

Aug 21, 2026

Release point: 119-102