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| ##    |   | ## Banking Bulletin    | ##   | ## Depository In    |   |
| Type: |   |                        | Subj | stitutions Disaster |   |
|       |   |                        | ect: |  Relief Act of 1992 |   |
+-------+---+------------------------+------+---------------------+---+

To: Chief Executive Officers of All National Banks, Deputy Comptrollers,
Department and Division Heads, and All Examining Personnel

PURPOSE

On October 23, 1992, the President signed the Depository Institutions
Disaster Relief Act of 1992 (\"Act\"). The Act grants the federal
financial institution regulatory agencies (Agencies) the authority to
temporarily exempt certain regulatory requirements within locations that
are declared a \"major disaster area\" by the President of the United
States.

The Act covers the financial regulatory areas that Congress deemed most
beneficial to the prompt recovery of an area, as follows:

-   [Appraisal Requirements]{.underline}. Permanent change. Section 2 of
    the Act permits the Agencies to grant exceptions to the federal
    appraisal requirements for qualifying real property related
    transactions in a declared Major Disaster Area (\"MDA\"). The
    exemption lasts for a period not to exceed three years from the date
    of declaration.

> For this Section to be in effect, the Agencies must publish a
> Statement and Notice of Order, or a regulation, in the [Federal
> Register]{.underline} activating the provisions for a specific MDA.

-   [Truth in Lending and Expedited Funds Acts.]{.underline} Temporary
    change. From October 23, 1992 through April 20,1993, the Board of
    Governors of the Federal Reserve System (FRB) is authorized by
    Section 3 to grant exceptions to the requirements of the Truth in
    Lending Act and the Expedited Funds Availability Act for
    transactions in an MDA.

> For this section to be in effect, the FRB must publish a regulation or
> Order in the Federal Register activating the provisions for the
> specific MDA.

-   [Publication Requirements.]{.underline} Temporary change. From
    October 23, 1992 through April 20, 1993, Section 5 of the Act
    authorizes the Agencies to grant exemptions from publication and
    notice requirements relating to corporate activities as well as
    certain requirements of the Administrative Procedures Act.

> For this section to be in effect, the Agencies must publish a
> Statement and Notice of Order, or a regulation, in the [Federal
> Register]{.underline} activating the provisions for the specific MDA.

-   [Deposit of Insurance Proceeds.]{.underline} Temporary change. From
    October 23, 1992 through April 22, 1994, Section 4 of the Act
    authorizes the Agencies to grant an exception for abnormal deposit
    growth of a financial institution located in the MDA. This exception
    permits the deduction of certain disaster_related deposits from
    total assets when calculating the leverage ratio under risked_based
    capital for the prompt corrective action requirements of Section 38
    of the Federal Deposit Insurance Act.

> This section does not require publication of an order in the [Federal
> Register]{.underline}. However, to be in effect, each bank desiring to
> be granted an exception must qualify and apply for a specific order to
> be issued to the bank by the District.

ACTION

The OCC, on November 17, 1992, in conjunction with the other
participating Agencies, published a Statement and Notice of Order
activating the provisions of Section 2 the Act for the MDAs declared on:

-   May 2, 1992 for the civil unrest in Los Angeles;

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-   August 24, 1992 for Hurricane Andrew in Florida;

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-   August 26, 1992 for Hurricane Andrew in Louisiana; and,

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-   September 12, 1992 for Hurricane Iniki in Hawaii.

The Order is effective as of the date of publication, November 17, 1992.
Accordingly, the provisions of this Act my be applied retroactive to the
date of declaration for qualifying transactions in each of the specific
MDAs.

Attached to this Banking Bulletin are:

> 1\. A copy of the interagency news release.
>
> 2\. A copy of the interagency Statement and Order dealing with real
> estate appraisals.
>
> 3\. A copy of Fannie Mae\'s guidance regarding real estate appraisals
> and the secondary market.
>
> 4\. A copy of the Order published by the Federal Reserve regarding
> Truth in Lending.
>
> 5\. An enrolled copy of DIDRA.

Questions concerning the applicability of the provisions in the Act to
your bank should be directed to the OCC office responsible for
supervising your institution. Specific questions regarding Truth in
Lending and Expedited Funds Availability should be directed to your
District Federal Reserve Bank.

RESPONSIBLE OFFICE

Questions concerning this bulletin should be directed to the Office of
the Chief National Bank Examiner, (202) 874-5170.

Jerilyn Gilland

Acting Chief National Bank Examiner