Financial Institution Letter
FIL-46-2010
August 5, 2010
REGULATORY RELIEF
Guidance to Help Financial Institutions and Facilitate Recovery in
Areas of Texas Affected by Hurricane Alex
Summary: The FDIC has announced a series of steps intended to provide regulatory relief to
financial institutions and facilitate recovery in areas of Texas affected by Hurricane Alex.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
in Texas
Suggested Routing:
Chief Executive Officer
Compliance Officer
Chief Lending Officer
Related Topics:
Lending
Investments
Publishing Requirements
Consumer Laws
Attachment:
Supervisory Practices Regarding Depository
Institutions and Borrowers Affected by Hurricane
Alex in Areas of Texas
Contact:
Assistant Regional Director John A. Perez at (972)
761-2099, or JoPerez@fdic.gov
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2010/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
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-
2200).
Highlights:
Hurricane Alex has caused significant property
damage in areas of Texas beginning on June 30,
2010.
A federal disaster was declared on August 3, 2010,
for selected counties in Texas.
The FDIC is encouraging banks to work
constructively with borrowers experiencing difficulties
beyond their control because of damage caused by
Hurricane Alex.
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.
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C.
FIL-46-2010
August 5, 2010
REGULATORY RELIEF
Guidance to Help Financial Institutions and Facilitate Recovery in
Areas of Texas Affected by Hurricane Alex
Summary: The FDIC has announced a series of steps intended to provide regulatory relief to
financial institutions and facilitate recovery in areas of Texas affected by Hurricane Alex.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
in Texas
Suggested Routing:
Chief Executive Officer
Compliance Officer
Chief Lending Officer
Related Topics:
Lending
Investments
Publishing Requirements
Consumer Laws
Attachment:
Supervisory Practices Regarding Depository
Institutions and Borrowers Affected by Hurricane
Alex in Areas of Texas
Contact:
Assistant Regional Director John A. Perez at (972)
761-2099, or JoPerez@fdic.gov
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2010/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
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-
2200).
Highlights:
Hurricane Alex has caused significant property
damage in areas of Texas beginning on June 30,
2010.
A federal disaster was declared on August 3, 2010,
for selected counties in Texas.
The FDIC is encouraging banks to work
constructively with borrowers experiencing difficulties
beyond their control because of damage caused by
Hurricane Alex.
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.
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C.
SUPERVISORY PRACTICES REGARDING DEPOSITORY INSTITUTIONS AND
BORROWERS AFFECTED BY HURRICANE ALEX IN AREAS OF TEXAS
The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact of
Hurricane Alex on the customers and operations of financial institutions in Texas 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 Texas include Cameron, Hidalgo, Jim Hogg, Maverick, Starr, Val
Verde, Webb, and Zapata counties.
Lending. Bankers should work constructively with borrowers in communities affected by
Hurricane Alex. 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 hurricane, 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 Hurricane
Alex. The FDIC realizes 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 hurricane 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 Hurricane Alex
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 the
hurricane. In most cases, a telephone notice to the FDIC will suffice initially. Necessary
written notification can be submitted later.
BORROWERS AFFECTED BY HURRICANE ALEX IN AREAS OF TEXAS
The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact of
Hurricane Alex on the customers and operations of financial institutions in Texas 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 Texas include Cameron, Hidalgo, Jim Hogg, Maverick, Starr, Val
Verde, Webb, and Zapata counties.
Lending. Bankers should work constructively with borrowers in communities affected by
Hurricane Alex. 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 hurricane, 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 Hurricane
Alex. The FDIC realizes 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 hurricane 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 Hurricane Alex
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 the
hurricane. In most cases, a telephone notice to the FDIC will suffice initially. Necessary
written notification can be submitted later.