The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact
of severe weather on customers and operations of financial institutions in
Illinois 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 Illinois are Cook, DeKalb, DuPage, Fulton, Grundy, Kane,
Kendall, Lake, LaSalle, McHenry, and Will counties.
Lending: Bankers should work constructively with
borrowers in communities affected by the severe weather. The FDIC realizes that
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 weather, 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 interest1.
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).
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
FDIC-supervised institutions affected by the severe weather should notify the
Chicago 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.
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 Chicago Regional Office.
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 Chicago 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 weather. In most cases, a telephone notice to the FDIC will suffice
initially. Necessary written notification can be submitted later.