12 U.S. Code § 3905 - Accounting for fees on international loans
Accounting for fees on international loans
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.
Each appropriate Federal banking agency shall promulgate such regulations as are necessary to further carry out the provisions of this subsection.
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.
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