Credit review committees
In general
The board of directors of each qualified lender shall establish one or more credit review committees, which shall include farmer board representation.
Membership
In no case shall a loan officer involved in the initial decision on a loan serve on the credit review committee when the committee reviews such loan.
Review of decisions
Denials or reductions
section 2201 of this titleAny applicant for a loan from a qualified lender that has received a written notice issued under of a decision to deny or reduce the loan applied for may submit a written request, not later than 30 days after receiving a notice denying or reducing the amount of the loan application, to obtain a review of the decision before the credit review committee.
Denials of restructuring
section 2201 of this titleA borrower of a loan from a qualified lender that has received notice, under , of a decision to deny loan restructuring with respect to a loan made to the borrower, if the borrower so requests in writing within 7 days after receiving such notice, may obtain a review of such decision in person before the credit review committee.
Personal appearance
An applicant for a loan or for restructuring, who is entitled to and has requested a review under this section, may appear in person before the credit review committee, and may be accompanied by counsel or by any other representative of such person’s choice, to seek a reversal of the decision on the application under review.
Independent appraisal
In general
An appeal filed with a credit review committee under this section may include, as a part of the request for a review of the decision filed under subsection (b)(1) or (2), a request for an independent appraisal, by an accredited appraiser, of any interests in property securing the loan (other than the stock or participation certificates of the qualified lender held by the borrower).
Arrangement and cost
Within 30 days after a request for an appraisal under paragraph (1), the credit review committee shall present the borrower with a list of three appraisers approved by the appropriate qualified lender from which the borrower shall select an appraiser to conduct the appraisal the cost of which shall be borne by the borrower, and shall consider the results of such appraisal in any final determination with respect to the loan.
Copy to borrower
A copy of any appraisal made under this subsection shall be provided to the borrower.
Additional collateral
An independent appraisal shall be permitted if additional collateral for a loan is demanded by the qualified lender when determining whether to restructure the loan.
Notification of applicant
Promptly after a review by the credit review committee, the committee shall notify the applicant or borrower, as the case may be, in writing of the decision of the committee and the reasons for the decision.
Pub. L. 92–181, title IV, § 485 Stat. 613 Pub. L. 99–205, title III, § 30399 Stat. 1708 Pub. L. 100–233, title I, § 106101 Stat. 1580 Pub. L. 100–399, title I, § 103102 Stat. 990 (.14, , ; , , ; , title VIII, § 805(s), , , 1716; , title VII, § 702(b), , , 1006.)
Editorial Notes
Amendments
Pub. L. 100–233, § 805(s)Pub. L. 100–399, § 702(b)1988—, which directed amendment of this section by substituting “committees” for “committee(s)”, “2201” for “2199”, and “review” for “reviews”, was repealed by . See Construction of 1988 Amendment note below.
Pub. L. 100–233, § 106section 2199 of this title, amended section generally. Prior to amendment, section read as follows: “The board of directors of each Farm Credit System institution shall establish one or more credit review committee(s), which shall include farmer board respresentation. [sic] Any loan applicant who has received written notice, under , of a decision to deny or reduce the loan applied for, if the applicant so requests in writing within thirty days after receiving such notice, may obtain a review of such decision in person before the credit review committee. When a loan applicant requests review of an adverse credit decision, a majority of persons serving on such reviews committee must be persons who were not involved in making the adverse decision. Promptly after any such review, the applicant shall be notified in writing of the credit review committee’s decision and the reasons therefor.”
Pub. L. 100–399, § 103(a)Subsec. (b)(1). , substituted “before the” for “by a”.
Pub. L. 100–399, § 103(b)Subsec. (d)(1). , inserted “or (2)”.
Pub. L. 99–2051985—, in amending section generally, substituted provisions respecting reconsideration of action on loan application for prior reconsideration provisions which read as follows: “Any applicant who has reason to believe that the action on his application by an association failed to take into account facts pertinent to his application, or has misinterpreted or failed to properly apply the applicable law or rules and regulations governing his application, may, if he so requests in writing within thirty days of the date of that notice, request an informal hearing on his application and the action of the association in reduction or denial thereof, or the reason for such action, in person before the loan committee or officer or employee thereof authorized to act on applications under section 2033(11) or 2093(18) of this title. Promptly after such a hearing, he shall be notified of the decision upon reconsideration and the reasons therefor.”
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Pub. L. 100–399Pub. L. 100–233section 1001(a) of Pub. L. 100–399section 2002 of this titleAmendment by effective as if enacted immediately after enactment of , which was approved , see , set out as a note under .
Effective Date of 1985 Amendment
Pub. L. 99–205section 401 of Pub. L. 99–205section 2001 of this titleAmendment by effective thirty days after , see , set out as a note under .
Construction of 1988 Amendment
Pub. L. 100–399, title VII, § 702(b)102 Stat. 1006 section 805(s) of Pub. L. 100–233, , , provided that , cited as a credit to this section, is repealed and that this section shall be applied and administered as if such section had not been enacted.