12 U.S.C. § 2201 | Notice of action on application

(a)

Loan applications

Each qualified lender to which a person has applied for a loan shall provide the person with prompt written notice of—

(1)

the action on the application;

(2)

if the loan applied for is reduced or denied, the reasons for such action; and

(3)

section 2202 of this title the applicant’s right to review under .

(b)

Distressed loans

Each qualified lender that has a distressed loan outstanding that is subject to restructuring requirements under this chapter shall provide, in accordance with regulations prescribed by the Farm Credit Administration, the borrower with prompt written notice of—

(1)

section 2202a of this title any action taken with respect to restructuring the loan under ;

(2)

if restructuring is denied, the reasons for such action; and

(3)

section 2202 of this title the borrower’s right to review under .

Pub. L. 92–181, title IV, § 4Dec. 10, 197185 Stat. 613 Pub. L. 99–205, title IIIDec. 23, 198599 Stat. 1707 Pub. L. 100–233, title I, § 105Jan. 6, 1988101 Stat. 1579(.13B, formerly § 4.13, , , renumbered § 4.13B and amended , §§ 301(a), 302, , , 1708; , , .)

Editorial Notes

Amendments

Pub. L. 100–233 section 2202 of this title1988— amended section generally. Prior to amendment, section read as follows: “Every applicant for a loan from an institution of the System shall be entitled to prompt written notice of action on his application, and, if the loan applied for is reduced or denied, the reason for such action, and of the applicant’s right to review under .”

Pub. L. 99–205, § 302 section 2202 of this title1985—, provided for a “written” notice and for the applicant’s right to review under .

Statutory Notes and Related Subsidiaries

Effective Date of 1985 Amendment

Pub. L. 99–205Dec. 23, 1985section 401 of Pub. L. 99–205 section 2001 of this titleAmendment by effective thirty days after , see , set out as a note under .