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12 U.S.C. § 5232 — Credit reform

submitted 18 years ago by Pub. L. 110-343 to r/title-12-BANKS-AND-BANKING · 196 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section applies Federal Credit Reform Act methods to specified program costs and cash flows. It requires market-risk adjustments and a before-and-after estimate for modifications.

(a) General rule. Subject to subsection (b), calculate the costs of purchases under section 5211(a), guarantees under section 5212, and cash flows from section 5212 and section 5216(a), (b), and (c) under the Federal Credit Reform Act of 1990. (b) Costs. For that Act's section 502(5)(E): (1) calculate the cost of troubled assets and guarantees by adjusting the discount rate for market risks; and (2) calculate the cost of modifying a troubled asset or guarantee as the difference between the current estimate under the original terms, calculated consistently with paragraph (1), and the current estimate under the modified terms, calculated the same way.

the actual law source: uscode.house.gov ↗public domain
(a) In general

Subject to subsection (b), the costs of purchases of troubled assets made under section 5211(a) of this title and guarantees of troubled assets under section 5212 of this title, and any cash flows associated with the activities authorized in section 5212 of this title and subsections (a), (b), and (c) of section 5216 of this title shall be determined as provided under the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et.1 seq.).

(b) Costs

For the purposes of section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))—

(1)

the cost of troubled assets and guarantees of troubled assets shall be calculated by adjusting the discount rate in section 502(5)(E) (2 U.S.C. 661a(5)(E)) for market risks; and

(2)

the cost of a modification of a troubled asset or guarantee of a troubled asset shall be the difference between the current estimate consistent with paragraph (1) under the terms of the troubled asset or guarantee of the troubled asset and the current estimate consistent with paragraph (1) under the terms of the troubled asset or guarantee of the troubled asset, as modified.

Source credit: (Pub. L. 110–343, div. A, title I, § 123, Oct. 3, 2008, 122 Stat. 3790.)

history & why it existsrecord from the source credit
  • 2008Enacted · Pub. L. 110-343 · 122 Stat. 3790

A history note hasn’t been published yet. The record shows enactment by Pub. L. 110-343 on 2008-10-03.

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