Supervisory Practices Regarding Depository
Institutions and Borrowers in Areas Affected by
Severe Storms and Flooding in Minnesota, Wisconsin and Ohio
The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact of the
storms and flooding in Minnesota, Wisconsin and Ohio 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 disaster areas to meet the financial service
needs of their communities.
Lending. Bankers should work constructively with borrowers in communities affected by
the storms and flooding. 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 and floods should not be subject to examiner criticism.
In supervising institutions impacted by the disaster, 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 extended in areas
affected by the disaster. The FDIC realizes that local government projects may be negatively
impacted. Appropriate monitoring and prudent efforts to stabilize such investments are
Reporting Requirements. FDIC-supervised institutions operating in the declared disaster
areas in Minnesota should notify the FDIC Kansas City Regional Office if they expect a
delay in filing their Reports of Income and Condition (Call Reports) or other reports. FDIC-supervised institutions operating in the declared disaster areas in Wisconsin and Ohio should
notify the FDIC Chicago Regional Office if they expect a delay in filing their Call Reports or
other reports. The FDIC will take into consideration any causes beyond the control of a
reporting institution in determining an acceptable filing delay.
Publishing Requirements. The FDIC understands that the damage caused by the recent
disaster 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 the FDIC Kansas City Regional Office (for Minnesota) or the Chicago Regional
Office (for Wisconsin and Ohio).
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.