(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
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
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.
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.
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.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Monday, July 29, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.