Sec. 6. MONITORING OF DEFAULT RATES ON BANK FINANCING; REPORTS ON DEFAULT RATES; SAFETY AND SOUNDNESS REVIEW
688 words·~3 min read·
/statute-compilations/comps-9887/sec-6A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
## SEC. 6 MONITORING OF DEFAULT RATES ON BANK FINANCING; REPORTS ON DEFAULT RATES; SAFETY AND SOUNDNESS REVIEW Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g) is amended by adding at the end the following: > > ### “(g) Monitoring of Default Rates on Bank Financing; Reports on Default Rates; Safety and Soundness Review > > > #### “(1) Monitoring of default rates > > Not less frequently than quarterly, the Bank shall calculate the rate at which the entities to which the Bank has provided short-, medium-, or long-term financing are in default on a payment obligation under the financing, by dividing the total amount of the required payments that are overdue by the total amount of the financing involved. > > > #### “(2) Additional calculation by type of product, by key market, and by industry sector; report to congress > > In addition, the Bank shall, not less frequently than quarterly— > > > ##### “(A) > > calculate the rate of default— > > > ###### “(i) > > with respect to whether the products involved are short-term loans, medium-term loans, long-term loans, insurance, medium-term guarantees, or long-term guarantees; > > > ###### “(ii) > > with respect to each key market involved; and > > > ###### “(iii) > > with respect to each industry sector involved; and > > > ##### “(B) > > submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on each such rate and any information the Bank deems relevant. > > > #### “(3) Report on causes of default rate; plan to reduce default rate > > Within 45 days after a rate calculated under paragraph
(1)equals or exceeds 2 percent, the Bank shall submit to the Congress a written report that explains the circumstances that have caused the default rate to be at least 2 percent, and includes a plan to reduce the default rate to less than 2 percent. > > > #### “(4) Plan contents > > The plan referred to in paragraph
(3)shall— > > > ##### “(A) > > provide a detailed explanation of the processes and controls by which the Bank monitors and tracks outstanding loans; > > > ##### “(B) > > detail specific planned actions, including a time frame for completing the actions, to reduce the default rate described in paragraph
(1)to less than 2 percent. > > > #### “(5) Monthly reports required while default rate is at least 2 percent > > For so long as the default rate calculated under paragraph
(1)is at least 2 percent, the Bank shall submit monthly reports to the Congress describing the specific actions taken during such period to reduce the default rate. > > > #### “(6) Safety and soundness review > > If the default rate calculated under paragraph
(1)remains above 2 percent for a period of 6 months, the Secretary of the Treasury shall provide for an independent third party to— > > > ##### “(A) > > conduct a review of the loan programs and funds of the Bank, which shall determine— > > > ###### “(i) > > the financial safety and soundness of the programs and funds; and > > > ###### “(ii) > > the extent of loan loss reserves and capital adequacy of the programs and funds; and > > > ##### “(B) > > submit to the Secretary, within 60 days after the end of the 6-month period, a report that— > > > ###### “(i) > > describes the methodology and standards used to conduct the review required by subparagraph (A); > > > ###### “(ii) > > sets forth the results and findings of the review, including the extent of loan loss reserves and capital adequacy of the programs and funds of the Bank; and > > > ###### “(iii) > > includes recommendations regarding restoring the reserves and capital to maintain the programs and funds in a safe and sound condition.” > .
Connectionstraces to 1
Traces to 1 document
Citation graph
cites case law
Sec. 6
MONITORING OF DEFAULT RATES ON BANK FINANCING; REPORTS ON DEFAULT RATES; SAFETY AND SOUNDNESS REVIEW
Cites 1Cited by 0 across 0 sources