Supervisory Practices Regarding Depository Institutions
and Borrowers in Areas Affected by Severe Storms and
Tornadoes in Central Florida
The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact of the recent
severe storms and tornadoes in central Florida on the operations of financial institutions and will
provide regulatory assistance to institutions subject to its supervision. These initiatives are being
taken to provide regulatory relief and facilitate recovery. The FDIC encourages depository
institutions in the affected disaster areas to meet the financial service needs of their communities.
Lending. Bankers should work constructively with borrowers in communities affected by the
storms. The FDIC realizes that the effects on local businesses and individuals are often transitory,
and that prudent efforts to adjust or alter terms on existing loans in areas affected by the storms
should not be subject to examiner criticism. In supervising institutions impacted by the disasters, the
FDIC will take into consideration the unusual circumstances the institutions face. The agency
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 the storms. The
FDIC realizes that local government projects may be negatively impacted. Appropriate monitoring
and prudent efforts to stabilize such investments are encouraged.
Reporting Requirements. FDIC-supervised institutions affected by the storms should notify their
FDIC regional office if they expect a delay in filing their Reports of Income and Condition (Call
Reports) or other reports. The FDIC will take into consideration any causes beyond the control of a
reporting institution in determining how long of a filing delay will be acceptable.
Publishing Requirements. The FDIC understands that the damage caused by the recent storms
may affect compliance with publishing and other requirements for branch closings, relocations and
temporary facilities under various laws and regulations. Banks that have disaster-related difficulties
in complying with any publishing or other requirements should contact their respective FDIC
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.