• Tropical Storm Lee caused significant property damage in areas of New York beginning on September 7, 2011.
• A federal disaster for selected areas in New York was declared on September 13, 2011. Additional designations may be made after damage assessments are completed in the affected areas. A current list of designated areas is available at www.fema.gov .
• The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the storm.
• Extending repayment terms, restructuring existing loans, or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the local community and serve the long-term interests of the lending institution.
• Banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.
• The FDIC also will consider regulatory relief from certain filing and publishing requirements.

Suggested Distribution:
FDIC-Supervised Banks (Commercial and Savings) in New York

Suggested Routing:
Chief Executive Officer
Compliance Officer
Chief Lending Officer

Note:
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2011/index.html .

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html .

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).

Supervisory Practices Regarding Depository Institutions and Borrowers Affected by Tropical Storm Lee in Areas of New York

The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact of the tropical storm on customers and operations of financial institutions in New York and will provide regulatory assistance to institutions subject to its supervision. These initiatives will provide regulatory relief and facilitate recovery. The FDIC encourages depository institutions in the affected areas to meet the financial services needs of their communities.

Lending: Bankers should work constructively with borrowers in communities affected by the storm. The FDIC realizes the effects of natural disasters on local businesses and individuals are often transitory, and prudent efforts to adjust or alter terms on existing loans in affected areas should not be subject to examiner criticism. In supervising institutions affected by the storm, the FDIC will consider the unusual circumstances they face. The FDIC 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.

Investments: Bankers should monitor municipal securities and loans affected by Tropical Storm Lee. The FDIC realizes local government projects may be negatively affected. Appropriate monitoring and prudent efforts to stabilize such investments are encouraged.

Publishing Requirements: The FDIC understands the damage caused by the storm may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations. Banks experiencing disaster-related difficulties in complying with any publishing or other requirements should contact the New York Regional Office.

Temporary Banking Facilities: The New York Regional Office will expedite any request to operate temporary banking facilities by an institution whose offices have been damaged or that desires to provide more convenient availability of services to those affected by the storm. In most cases, a telephone notice to the FDIC will suffice initially. Necessary written notification can be submitted later.