The Federal Deposit Insurance Corporation (FDIC) recognizes the serious
impact of severe weather on customers and operations of financial
institutions in Alabama 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.
The affected areas in Alabama are Chilton and Jefferson counties.
Lending: Bankers should work constructively with
borrowers in communities affected by the severe storms. 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 severe
storms, 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.
Community Reinvestment Act (CRA): Financial institutions
may receive CRA consideration for community development loans,
investments, or services that revitalize or stabilize federally
designated disaster areas in their assessment areas or in the states or
regions that include their assessment areas. For additional information,
institutions should review the Interagency Questions and Answers
Regarding Community Reinvestment at http://www.ffiec.gov/cra/pdf/2010-4903.pdf
at Section 12(g)(4)(ii). For help in identifying community development
activities to revitalize or stabilize a disaster area, financial
institutions can contact their regional Community Affairs Officer (see
http://www.fdic.gov/consumers/community/offices.html).
Investments: Bankers should monitor municipal securities
and loans affected by the severe weather. The FDIC realizes local
government projects may be negatively affected. Appropriate monitoring
and prudent efforts to stabilize such investments are encouraged.
Reporting Requirements: FDIC-supervised institutions
affected by the severe weather should notify the Atlanta Regional Office
if they expect a delay in filing Reports of Income and Condition or
other reports. The FDIC will evaluate any causes beyond the control of a
reporting institution when considering the length of an acceptable
delay.
Publishing Requirements: The FDIC understands the damage
caused by the severe weather 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 Atlanta 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.
Temporary Banking Facilities: The Atlanta 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
severe storms. In most cases, a telephone notice to the FDIC will
suffice initially. Necessary written notification can be submitted
later.