### Question
How does TYING ARRANGEMENTS define distressed loan?


### Answer
Under *12 U.S.C. § 2202a*, **distressed loan** is defined as:

> a loan that the borrower does not have the financial capacity to pay according to its terms and that exhibits one or more of the following characteristics:


(A) The borrower is demonstrating adverse financial and repayment trends

#### Citation:
  - *12 U.S.C. § 2202a*
  - Heading: **CHAPTER 22-TYING ARRANGEMENTS > SUBCHAPTER IV-PROVISIONS APPLICABLE TO TWO OR MORE CLASSES OF INSTITUTIONS OF THE SYSTEM > Part C-Rights of Borrowers; Loan Restructuring**

