Guam has sustained heavy damage to its ports, power and water facilities, a hospital and commercial and residential properties from Super Typhoon Pongsona. As noted in the attached guidelines, the FDIC is encouraging 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 Assistant Regional Director Daniel M. Gautsch in the San Francisco Regional Office at (415) 546-0160, or toll-free at (800) 756-3558, option 0.

For your reference, FDIC FILs may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2002/index.html .

Attachment: Supervisory Practices Regarding Depository Institutions and Borrowers Affected by Super Typhoon Pongsona

Distribution: FDIC-Supervised Institutions in the San Francisco Region

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).