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Code · U.S. Code · Title 12 - BANKS AND BANKING · CHAPTER 40— INTERNATIONAL LENDING SUPERVISION · § 3908

§ 3908. Foreign loan evaluations

339 words·~2 min read·/usc/title-12/section-3908

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(a)Projects requiring an economic feasibility evaluation; content of evaluation
(1)In any case in which one or more banking institutions extend credit, whether by loan, lease, guarantee, or otherwise, which individually or in the aggregate exceeds $20,000,000, to finance any project which has as a major objective the construction or operation of any mining operation, any metal or mineral primary processing operation, any fabricating facility or operation, or any metal-making operations (semi and finished) located outside the United States or its territories and possessions, a written economic feasibility evaluation of such foreign project shall be prepared and approved in writing by a senior official of the banking institution, or, if more than one banking institution is involved, the lead banking institution, prior to the extension of such credit.
(2)Such evaluation shall—
(A)take into account the profit potential of the project, the impact of the project on world markets, the inherent competitive advantages and disadvantages of the project over the entire life of the project, and the likely effect of the project upon the overall long-term economic development of the country in which the project is located; and
(B)consider whether the extension of credit can reasonably be expected to be repaid from revenues generated by such foreign project without regard to any subsidy, as defined in international agreements, provided by the government involved or any instrumentality of any country.
(b)Review of evaluation by Federal banking agencies Such economic feasibility evaluations shall be reviewed by representatives of the appropriate Federal banking agencies whenever an examination by such appropriate Federal banking agency is conducted.
(c)Other statutory authorities applicable
(1)The authorities of the Federal banking agencies contained in section 1818 of this title and in section 3909 of this title, except those contained in section 3909(d) of this title, shall be applicable to this section.
(2)No private right of action or claim for relief may be predicated upon this section.
(Pub. L. 98–181, title I [title IX, § 909], Nov. 30, 1983, 97 Stat. 1281.)
Connections5 cite this · traces to 2
2 references not yet in our index
  • Pub. L. 98–181, title I
  • 97 Stat. 1281
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§ 3908
Foreign loan evaluations
Bills×3
Stat. Comp.×1
Stat.×1
Pub. L.Pub. L. 98–181, title I
Stat.97 Stat. 1281
Cites 4Cited by 5 across 3 sources
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