Fabio
76b8ec33a7
Ingested titles 12–51 and 54 from OLRC USLM XML @119-100 (the whole Code now, uniform edition; Title 53 is reserved/empty). LegalText 11,221 -> 59,740; repo total 105,704 records. Deterministic (byte-identical rerun, verified on Title 42's 8,356 sections); make check green. make legal-us-code default now covers every title. Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
52 lines
2.8 KiB
Markdown
52 lines
2.8 KiB
Markdown
---
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type: "LegalText"
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title: "12 U.S.C. § 3904"
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description: "Reserves"
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jurisdiction: "us"
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corpus: "united_states_code"
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kind: "code_section"
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title_number: 12
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title_name: "BANKS AND BANKING"
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chapter_number: "40"
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chapter_name: "INTERNATIONAL LENDING SUPERVISION"
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section: "3904"
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citation: "12 U.S.C. § 3904"
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status: "current"
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release_point: "119-100"
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release_date: "2026-06-26"
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source: "official"
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source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc12@119-100.zip"
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source_identifier: "/us/usc/t12/s3904"
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source_file: "data/legal/raw/us/code/title-12/usc12.xml"
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source_hash: "b74dbaf81830f9eeab23f421e72ce54e99bba844df567c6a0fe705c9ef23fbcf"
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raw_snapshot_hash: "e6b98700ef4156ac33fde5d105824845d727afa91a53f3762be2cf4d1a3b01fa"
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text_hash: "78d1d698c3e1b85a6bd0f01df9fd7921f6a1a5f653577c079b2417055dc9d12a"
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retrieved_at: "2026-07-04"
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confidence: "official"
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tags: ["legal", "us-code"]
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---
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# 12 U.S.C. § 3904 - Reserves
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## Text
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(a) Establishment and maintenance of special reserves (1) Each appropriate Federal banking agency shall require a banking institution to establish and maintain a special reserve whenever, in the judgment of such appropriate Federal banking agency—
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(A) the quality of such banking institution’s assets has been impaired by a protracted inability of public or private borrowers in a foreign country to make payments on their external indebtedness as indicated by such factors, among others, as—
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(i) a failure by such public or private borrowers to make full interest payments on external indebtedness;
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(ii) a failure to comply with the terms of any restructured indebtedness; or
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(iii) a failure by the foreign country to comply with any International Monetary Fund or other suitable adjustment program; or
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(B) no definite prospects exist for the orderly restoration of debt service.
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(2) Such reserves shall be charged against current income and shall not be considered as part of capital and surplus or allowances for possible loan losses for regulatory, supervisory, or disclosure purposes.
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(b) Accommodation of potential losses on foreign loans by United States banks The appropriate Federal banking agencies shall analyze the results of foreign loan rescheduling negotiations, assess the loan loss risk reflected in rescheduling agreements, and, using the powers set forth in section 3907 of this title (regarding capital adequacy), ensure that the capital and reserve positions of United States banks are adequate to accommodate potential losses on their foreign loans.
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(c) Regulations and orders of Federal banking agencies The appropriate Federal banking agencies shall promulgate regulations or orders necessary to implement this section within one hundred and twenty days after November 30, 1983.
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(Pub. L. 98–181, title I [title IX, § 905], Nov. 30, 1983, 97 Stat. 1279.)
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