Supervisory Practices Regarding
Depository Institutions and Borrowers Affected by
Severe Storms and Tornadoes in Iowa and
The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact of the
recent storms, tornadoes and flooding on the customers and 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, tornadoes and flooding. The FDIC realizes that the effects of natural disasters on
local businesses and individuals are often transitory, and that prudent efforts to adjust or alter
terms on existing loans in affected areas should not be subject to examiner criticism. In
supervising institutions impacted by the storms and tornadoes, the FDIC will take into
consideration 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.
Reporting Requirements. FDIC-supervised institutions affected by the disasters should
notify the FDIC's Kansas City 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 considering how
long of a filing delay will be acceptable.
Publishing Requirements. The FDIC understands that the damage caused by the storms
and tornadoes 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 Kansas City 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 Kansas City Regional Office will expedite any request
to operate temporary bank facilities by an institution whose offices have been damaged or
that desires to provide more convenient availability of services to those affected by the
disaster. In most cases, a telephone notice to the regional office will suffice initially, and
necessary written notification can be submitted later.