- Severe storms and flooding that began on March 12,
2010, have caused significant property damage in
areas of Rhode Island and Massachusetts.
- Federal disasters were declared on March 29, 2010,
for selected counties in Rhode Island and
- The FDIC is encouraging banks to work
constructively with borrowers experiencing difficulties
beyond their control because of damage caused by
the severe weather.
- Extending repayment terms, restructuring existing
loans, or easing terms for new loans, if done in a
manner consistent with sound banking practices, can
contribute to the health of the community and serve
the long-term interests of the lending institution.
- The FDIC also will consider regulatory relief from
certain filing and publishing requirements.
FDIC-Supervised Banks (Commercial and Savings)
in the Rhode Island and Massachusetts
Chief Executive Officer
Chief Lending Officer
Supervisory Practices Regarding Depository
Institutions And Borrowers Affected By Severe
Storms and Flooding in Areas of Rhode Island and
Assistant Regional Director Mary Barry at (781)
794-5524 or MBarry@fdic.gov
FIL-12-2010 - PDF (PDF Help)
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
To receive FILs electronically, please visit
Paper copies of FDIC financial institution letters
may be obtained through the FDIC's Public
Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (1-877-275-3342 or 703-562-
SUPERVISORY PRACTICES REGARDING DEPOSITORY INSTITUTIONS AND BORROWERS
AFFECTED BY SEVERE STORMS AND FLOODING IN AREAS OF RHODE ISLAND AND
The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact of the recent
severe storms and flooding on the customers and operations of financial institutions in Rhode Island
and Massachusetts 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 Rhode Island are Kent, Newport, Providence and Washington counties.
The affected areas in Massachusetts are Bristol, Essex, Middlesex, Norfolk, Plymouth, Suffolk and
Lending. Bankers should work constructively with borrowers in communities affected by the severe
storms and flooding. The FDIC realizes 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 impacted 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.
Investments. Bankers should monitor municipal securities and loans affected by the severe storms
and flooding. 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 severe weather should notify
the Boston Area 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 storms and
flooding 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 Boston
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 Boston Area 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 the severe storm and flooding. In
most cases, a telephone notice to the FDIC will suffice initially, and necessary written notification can
be submitted later.