To provide emergency authority for the Federal Deposit Insurance Corporation and the National Credit Union Administration, in accordance with guidance issued by the Board of Governors of the Federal Reserve System, to guarantee checks cashed by insured depository institutions and insured credit unions for the benefit of noncustomers who are victims of certain 2005 hurricanes, and for other purposes.

SECTION 1. SHORT TITLE, PURPOSE.

    (a) Short Title.--This Act may be cited as the ``Hurricane Check 
Cashing Relief Act of 2005''.
    (b) Purpose.--The purpose of this Act is to reduce the suffering 
and financial difficulties of victims of 2005 hurricanes--
            (1) whose home insured depository institutions and insured 
        credit unions, or the insured depository institution or insured 
        credit union on which any check or share draft payable to any 
        such victim is drawn, are closed, or whose records are 
        otherwise inaccessible, due to certain 2005 hurricanes;
            (2) who lack access to operating automated teller machines 
        for whatever reason as a result of any such hurricane, 
        including inoperable payment networks;
            (3) who lack some or all of the requisite forms of 
        identification necessary to cash their own or a third-party 
        check or share draft; or
            (4) who are otherwise unable, by reason of any such 
        hurricane, to access amounts on deposit at an insured 
        depository institution or insured credit union.

SEC. 2. EMERGENCY AUTHORITY TO GUARANTEE CHECKS CASHED FOR VICTIMS OF 
              CERTAIN 2005 HURRICANES.

    (a) FDIC.--
            (1) In general.--Subject to subsection (d), the Federal 
        Deposit Insurance Corporation shall establish, in accordance 
        with emergency guidance issued by the Board of Governors of the 
        Federal Reserve System under subsection (d)(1), an emergency 
        program under which an insured depository institution may 
        obtain, subject to subsection (d)(2), a commitment from the 
        Corporation to indemnify the insured depository institution for 
        any loss suffered by the institution through cashing a check or 
        share draft that--
                    (A) is presented for payment by any individual who, 
                as of August 25, 2005, resided in the State of Florida, 
                Alabama, Mississippi, Louisiana, or Texas in an area in 
                which the President, pursuant to section 401 of the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act, determined, on or after August 25, 
                2005, that a major disaster exists; and
                    (B) is subsequently uncollectible,
        in an amount not to exceed $2,000 for each such check or share 
        draft.
            (2) Source of funds for payments.--Any payments required to 
        be made by the Corporation pursuant to a commitment under 
        paragraph (1) to an insured depository institution shall be 
        drawn from funds available for such purposes under subsection 
        (c).
    (b) NCUA.--
            (1) In general.--Subject to subsection (d), the National 
        Credit Union Administration shall establish, in accordance with 
        emergency guidance issued by the Board under subsection (d)(1), 
        an emergency program under which an insured credit union may 
        obtain, subject to subsection (d)(2), a commitment from the 
        Administration to indemnify the insured credit union for any 
        loss suffered by the credit union through cashing a share draft 
        or check that--
                    (A) is presented for payment by any individual who, 
                as of August 25, 2005, resided in the State of Florida, 
                Alabama, Mississippi, Louisiana, or Texas in an area in 
                which the President, pursuant to section 401 of the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act, determined, on or after August 25, 
                2005, that a major disaster exists; and
                    (B) is subsequently uncollectible,
        in an amount not to exceed $2,000 for each such check or share 
        draft
            (2) Source of funds for payments.--Any payments required to 
        be made by the National Credit Union Administration pursuant to 
        a commitment under paragraph (1) to an insured credit union 
        shall be drawn from funds available for such purposes under 
        subsection (c).
            (3) Limited extension of check cashing services.--
        Notwithstanding any limitation in section 107(12) of the 
        Federal Credit Union Act with regard to field of membership, an 
        insured credit union may cash any check presented for payment 
        by any individual described in paragraph (1)(A).
    (c) Reimbursement From Federal Reserve Surpluses.--Section 7(b) of 
the Federal Reserve Act (12 U.S.C. 289(b)) is amended by adding at the 
end the following new paragraph:
            ``(4) Additional transfers to cover certain relief efforts 
        resulting from hurricanes of 2005.--
                    ``(A) In general.--Subject to subparagraph (C), 
                from the surplus funds of the Federal reserve banks 
                maintained pursuant to subsection (a)(2), the Federal 
                reserve banks shall transfer to the Board of Governors 
                of the Federal Reserve System for transfer to the 
                Federal Deposit Insurance Corporation and the National 
                Credit Union Administration, such sums as are necessary 
                to meet any payments required under subsection (a)(1) 
                or (b)(1) of section 2 of the Hurricane Check Cashing 
                Relief Act. In the event that the total amount of 
                requests for indemnification received by the Federal 
                Deposit Insurance Corporation and the National Credit 
                Union Administration exceed the maximum amount 
                specified under subparagraph (C), the sums transferred 
                to the Federal Deposit Insurance Corporation and the 
                National Credit Union Administration, respectively, 
                shall be in proportion to the amount of payments 
                required under subsection (a)(1) and (b)(1) of section 
                2 of the Hurricane Check Cashing Relief Act of 2005, 
                respectively.
                    ``(B) Allocation by federal reserve board.--Of the 
                total amount required to be paid by the Federal reserve 
                banks, the Board of Governors of the Federal Reserve 
                System shall determine the amount each such bank shall 
                pay.
                    ``(C) Maximum amount.--The total amount transferred 
                under subparagraph (A) from all Federal reserve banks 
                shall not exceed $200,000,000.
                    ``(D) Replenishment of surplus fund prohibited.--No 
                Federal reserve bank may replenish such bank's surplus 
                fund by the amount of any transfer by such bank under 
                subparagraph (A).''.
    (d) Emergency Guidance and Limitations.--
            (1) In general.--The Board, after consulting the Federal 
        Deposit Insurance Corporation and the National Credit Union 
        Administration, shall, upon the enactment of this Act, promptly 
        issue appropriate guidance--
                    (A) to carry out the purposes of this section and 
                administer the programs established in accordance with 
                this section;
                    (B) to reduce the incidence of fraud and any other 
                cause of loss to the greatest extent possible, 
                consistent with the purpose of this Act;
                    (C) to require insured depository institutions and 
                insured credit unions to exercise due diligence in 
                determining the eligibility of any check presented by 
                any individual for indemnification under this section, 
                including such measures as verification of Social 
                Security numbers and other identifying information as 
                the Board may determine to be practicable;
                    (D) to provide insured depository institutions and 
                insured credit unions with reasonable guidance, in 
                light of the emergency circumstances presented by 
                certain 2005 hurricanes, so as to meet the requirements 
                for indemnification under this section, including the 
                sharing of information on checks that have been 
                presented for indemnification; and
                    (E) notwithstanding any Federal or State law, to 
                provide for the right of the Board of Governors of the 
                Federal Reserve System, on behalf of the Federal 
                reserve banks and through the Federal Deposit Insurance 
                Corporation and the National Credit Union 
                Administration, to recover from any insured depository 
                institution or insured credit union the amount of any 
                indemnification paid to such depository institution or 
                credit union with respect to any check, to the extent 
                of the amount so paid, if the insured depository 
                institution or insured credit union collects on the 
                check.
            (2) Compliance with guidance condition.--The emergency 
        guidance issued under paragraph (1) shall require any insured 
        depository institution or insured credit union seeking a 
        commitment under subsection (a)(1) or (b)(1) to demonstrate 
        that the institution or credit union is in compliance with the 
        guidance in such manner as the Board determines to be 
        appropriate and practicable.
            (3) Per individual per institution limitation.--No specific 
        insured depository institution or insured credit union may be 
        indemnified for losses in excess of $2,000 with respect to 
        checks and share drafts presented by any one individual.
    (e) Definitions.--For purposes of this Act, the following 
definitions shall apply:
            (1) Board.--The term ``Board'' means the Board of Governors 
        of the Federal Reserve System.
            (2) Insured credit union.--The term ``insured credit 
        union'' has the same meaning as in section 101 of the Federal 
        Credit Union Act.
            (3) Insured depository institution.--The term ``insured 
        depository institution'' has the same meaning as in section 3 
        of the Federal Deposit Insurance Act.
    (f) Rule of Construction.--No provision of this section shall be 
construed as affecting any right or obligation of an insured depository 
institution or insured credit union to take any action against any 
person in connection with a fraudulent check, a fraudulent negotiation 
of a check, or any other intentional act of a fraudulent or deceptive 
nature.
    (g) Effective Date.--
            (1) In general.--Subject to paragraph (2), the provisions 
        of this section shall apply to checks or share drafts presented 
        to an insured depository institution or an insured credit union 
        during the period beginning on August 25, 2005, and ending 
        November 15, 2005.
            (2) Limited extension.--The period described in paragraph 
        (2) may be extended once for an additional 60 days if--
                    (A) the Board, after consulting with the Federal 
                Deposit Insurance Corporation and the National Credit 
                Union Administration, determines that the continuing 
                impact of the 2005 hurricane disasters on financial 
                intermediation between consumers and financial 
                institutions, on payment networks, and on other forms 
                of communication require an extension of the programs 
                established under this section in order to continue to 
                meet the immediate needs of victims of the disaster; 
                and
                    (B) notice of such determination is published in 
                the Federal Register at least 5 days before the end of 
                the period described in paragraph (1).
                                                 

Summary: Hurricane Check Cashing Relief Act of 2005 - Directs the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) to establish an emergency program under which an insured depository institution may obtain an indemnification commitment from the FDIC for loss it has suffered through cashing a check or share draft between August 25 and November 15, 2005, that: (1) is presented for payment by any individual who, as of August 25, 2005, resided in Florida, Alabama, Mississippi, Louisiana, or Texas in a presidentially declared major disaster area. And (2) is subsequently uncollectible. Amends the Federal Reserve Act to direct the federal reserve banks to transfer from their surplus funds up to $200 million to meet the indemnification requirements of this Act. Directs the Board of Governors of the Federal Reserve (Board) to issue implementation guidelines. Provides for a limited 60-day extension of the check or share draft cashing period if the Board determines that the continuing impact of the 2005 hurricane disasters on financial intermediation between consumers and financial institutions, on payment networks, and on other forms of communication require an extension of the programs established under this Act in order to continue to meet the immediate needs of victims of the disaster.