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Supervisory Practices Regarding Depository Institutions And Borrowers
Affected By Severe Storms And Tornadoes In Areas Of Oklahoma
The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact of
severe weather on customers and operations of financial institutions in Oklahoma
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 Oklahoma
are Cleveland, Lincoln, McClain, Oklahoma, and Pottawatomie 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 interest.1
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 Dallas 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 Dallas 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 Dallas
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.
1Modifications of existing loans should be
evaluated individually to determine whether they represent troubled debt
restructurings (TDRs). This evaluation should be based on the facts and
circumstances of each borrower and loan, which requires judgment, as not
all modifications are TDRs.
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