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Home > News & Events > Inactive Financial
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Inactive Financial Institution Letters |
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FIL-22-97 |
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The Federal Deposit Insurance Corporation has announced a series
of steps intended to facilitate the process of rebuilding the
areas damaged by flooding in the Ohio River Basin.
As noted in the attached guidelines, the FDIC is encouraging
state-chartered banks to work constructively with borrowers who
are experiencing difficulties due to conditions beyond their
control. The guidelines suggest that extending repayment terms,
restructuring existing loans or easing terms for new loans, if
done in a manner consistent with sound banking practices, can
both contribute to the health of the community and serve the
long-term interests of the lending institution. The guidelines
also address other types of regulatory relief.
For guidance on these and related matters, please contact your
FDIC Division of Supervision Regional Office:
Chicago Regional Office (312) 382-7500 -- Illinois, Indiana,
and Ohio
Memphis Regional Office (901) 685-1603 -- Kentucky and
Tennessee
Atlanta Regional Office (404) 817-1300 -- West Virginia
Attachment: (below)
Distribution: FDIC-Supervised Banks (Commercial and Savings) in
Illinois, Indiana, Kentucky, Ohio, Tennessee and West Virginia
Note: Paper copies of FDIC financial institution letters may be
obtained through the FDIC's Public Information Center, 801 17th
Street, N.W., Room 100, Washington, D.C. 20434 ((703) 562-2200 or
800-276-6003).
DEPOSITORY INSTITUTIONS AND BORROWERS AFFECTED BY FLOODING IN THE OHIO RIVER BASIN
The Federal Deposit Insurance Corporation recognizes the serious
impact of flooding in the Ohio River Basin on the operations of
financial institutions and will provide regulatory assistance to
institutions subject to its supervision. These initiatives are
being taken to provide regulatory relief and facilitate recovery.
The FDIC encourages depository institutions in the affected
disaster areas to meet the financial service needs of their
communities.
Lending. Bankers should work constructively with borrowers in
communities affected by the flooding. The agency realizes that
the effects of such natural disasters on local businesses and
individuals are often transitory, and that prudent efforts to
adjust or alter terms on existing loans in areas affected by the
flooding should not be subject to examiner criticism. In
supervising institutions impacted by the disaster, the FDIC will
take into consideration the unusual circumstances they face. The
agency recognizes that efforts to work with borrowers in
communities under stress can be consistent with safe and sound
banking practices as well as in the public interest.
Reporting Requirements. FDIC-supervised institutions affected
by the flooding should notify the appropriate Regional Office if
they expect a delay in filing their Reports of Income and
Condition (Call Reports) or other reports. The FDIC will take
into consideration any causes beyond the control of a reporting
institution in considering how long a delay in filing can be
accepted.
Publishing Requirements. The FDIC understands that the flooding
may affect compliance with publishing and other requirements for
branch closings, relocations and temporary facilities under
various laws and regulations. Banks that have flood-related
difficulties complying with any publishing or other requirements
should contact the appropriate Regional Office.
Consumer Laws. Regarding consumer loans, Regulation Z
provides consumers an option to waive or modify the three-day
rescission period when a "bona fide personal financial emergency"
exists. To exercise this option, the consumer must provide the
lender with a statement describing the emergency in accordance
with the regulation.
For guidance on these and related matters, please contact your
FDIC Division of Supervision Regional Office:
Chicago Regional Office (312) 382-7500 -- Illinois, Indiana, and
Ohio
Memphis Regional Office (901) 685-1603 -- Kentucky and Tennessee
Atlanta Regional Office (404) 817-1300 -- West Virginia
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| Last Updated 07/16/1999 | communications@fdic.gov |
