103D CONGRESS

1ST SESSION S. 1273

AN ACT

To enhance the availability of credit in disaster

soundness of the institutions.such action is consistent with the safety andupon insured depository institutions to the extentareas by reducing the regulatory burden imposed
103D CONGRESS

1ST SESSION S. 1273

AN ACT

To enhance the availability of credit in disaster areas by

reducing the regulatory burden imposed upon insured

depository institutions to the extent such action is consistent with the safety and soundness of the institutions.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Disaster Credit Relief

5 Act of 1993’’.
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1 SEC. 2. DISASTER CREDIT RELIEF.

2 (a) REGULATORY EXCEPTION AUTHORITY.—

3 (1) EXCEPTION AUTHORITY.—In any area in

4 which the President has determined, on or after

5 April 1, 1993, that a major disaster exists pursuant

6 to section 401 of the Robert T. Stafford Disaster

7 Relief and Emergency Assistance Act or within an

8 area determined to be eligible for disaster relief

9 under other Federal law by reason of damage relat10 ed to the 1993 flooding of the Mississippi River and

11 its tributaries, the Board of Governors of the Fed12 eral Reserve System may make exceptions to—

13 (A) the requirements of the Truth in

14 Lending Act, for credit transactions made with15 in such area; or

16 (B) the requirements of the Expedited

17 Funds Availability Act for offices of depository

18 institutions (as defined in section 602 of that

19 Act) located within such area;

20 if the Board determines that the exception can rea21 sonably be expected to produce benefits to the public

22 that outweigh possible adverse effects of the excep23 tion.

24 (2) EXPIRATION.—Any exception granted under

25 paragraph (1) shall expire not later than October 1,

26 1994.
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1 (3) PUBLICATION REQUIRED.—The Board of

2 Governors of the Federal Reserve System shall pub3 lish in the Federal Register a statement that—

4 (A) describes any exception made under

5 this subsection; and

6 (B) explains how the exception can reason7 ably be expected to produce benefits to the pub8 lic that outweigh possible adverse effects.

9 (b) LEVERAGE LIMIT COMPLIANCE.—

10 (1) EXCEPTION AUTHORITY.—The appropriate

11 Federal banking agency may, by order, permit an in12 sured depository institution located in any area in

13 which the President has determined, on or after

14 April 1, 1993, that a major disaster exists pursuant

15 to section 401 of the Robert T. Stafford Disaster

16 Relief and Emergency Assistance Act or within an

17 area determined to be eligible for disaster relief

18 under other Federal law by reason of damage relat19 ed to the 1993 flooding of the Mississippi River and

20 its tributaries, to subtract from the institution’s

21 total assets, in calculating compliance with the lever22 age limit prescribed under section 38 of the Federal

23 Deposit Insurance Act, an amount not to exceed the

24 qualifying amount attributable to insurance pro25 ceeds, if the agency determines that—
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1 (A) the institution—

2 (i) had its principal place of business

3 within the major disaster area on the day

4 before the date of the President’s deter5 mination;

6 (ii) derives more than 60 percent of

7 its total deposits from persons who nor8 mally reside within, or whose principal

9 place of business is normally within, areas

10 of intense devastation caused by the major

11 disaster (such as the flooded areas of the

12 Mississippi, Missouri, Kansas, Illinois, and

13 Des Moines rivers, and the tributaries of

14 such rivers);

15 (iii) was adequately capitalized (as de16 fined in section 38 of the Federal Deposit

17 Insurance Act) before the President’s de18 termination; and

19 (iv) has an acceptable plan for manag20 ing the increase in its total assets and total

21 deposits; and

22 (B) the subtraction is consistent with the

23 purpose of section 38 of the Federal Deposit

24 Insurance Act.
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1 (2) DEFINITIONS.—For purposes of this sub2 section—

3 (A) the term ‘‘appropriate Federal banking

4 agency’’ has the same meaning as in section 3

5 of the Federal Deposit Insurance Act;

6 (B) the term ‘‘insured depository institu7 tion’’ has the same meaning as in section 3 of

8 the Federal Deposit Insurance Act;

9 (C) the term ‘‘leverage limit’’ has the same

10 meaning as in section 38 of the Federal Deposit

11 Insurance Act; and

12 (D) the term ‘‘qualifying amount attrib13 utable to insurance proceeds’’ means the

14 amount by which the insured depository institu15 tion’s total assets exceed the institution’s aver16 age total assets during the calendar quarter

17 ending before the date of the Presidential deter18 mination referred to in paragraph (1), because

19 of the deposit of insurance payments or govern20 mental assistance made with respect to damage

21 caused by, or other costs resulting from, the

22 major disaster.

23 (3) EXPIRATION.—Any exception granted under

24 this subsection shall expire not later than April 1,

25 1995.
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1 (c) BANKING AGENCY PUBLICATION REQUIRE2 MENTS.—

3 (1) IN GENERAL.—A qualifying regulatory

4 agency may take any of the following actions with

5 respect to depository institutions or other regulated

6 entities whose principal place of business is within,

7 or with respect to transactions or activities within,

8 any area in which the President has determined, on

9 or after April 1, 1993, that a major disaster exists

10 pursuant to section 401 of the Robert T. Stafford

11 Disaster Relief and Emergency Assistance Act or

12 any area determined to be eligible for disaster relief

13 under other Federal law by reason of damage relat14 ed to the 1993 flooding of the Mississippi River and

15 its tributaries, if the agency determines that the ac16 tion would facilitate recovery from the major disas17 ter:

18 (A) PROCEDURE.—The agency may exer19 cise its authority under provisions of law other

20 than this subsection without regard to—

21 (i) any requirement of section 553 of

22 title 5, United States Code; or

23 (ii) any provision of law that requires

24 notice or opportunity for hearing or sets
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1 maximum or minimum time limits with re2 spect to agency action.

3 (B) PUBLICATION REQUIREMENTS.—The

4 agency may make exceptions, with respect to in5 stitutions or other entities for which the agency

6 is the primary Federal regulator, to—

7 (i) any publication requirement with

8 respect to establishing branches or other

9 deposit-taking facilities; or

10 (ii) any other similar publication re11 quirement.

12 (2) PUBLICATION REQUIRED.—A qualifying

13 regulatory agency shall publish in the Federal Reg14 ister a statement that—

15 (A) describes any action taken under this

16 subsection; and

17 (B) explains the need for the action.

18 (3) QUALIFYING REGULATORY AGENCY DE19 FINED.—For purposes of this subsection, the term

20 ‘‘qualifying regulatory agency’’ means—

21 (A) the Board of Governors of the Federal

22 Reserve System;

23 (B) the Comptroller of the Currency;

24 (C) the Director of the Office of Thrift Su25 pervision;
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1 (D) the Federal Deposit Insurance Cor2 poration;

3 (E) the Federal Financial Institutions Ex4 amination Council;

5 (F) the National Credit Union Administra6 tion; and

7 (G) with respect to chapter 53 of title 31,

8 United States Code, the Secretary of the Treas9 ury.

10 (4) EXPIRATION.—The authority of a qualifying

11 regulatory agency to take any action in accordance

12 with this subsection shall expire not later than April

13 1, 1994.

14 SEC. 3. STUDY AND REPORT REQUIRED.

15 (a) STUDY.—The Secretary of the Treasury, after

16 consultation with the appropriate Federal banking agen17 cies (as defined in section 3 of the Federal Deposit Insur18 ance Act), shall conduct a study to assess the impact of

19 Federal banking laws and regulations on the provision of

20 credit and banking services in major disaster areas, as de21 clared by the President. The study shall—

22 (1) examine how the agencies and entities

23 granted authority by the Depository Institutions

24 Disaster Relief Act of 1992 and by this Act have ex25 ercised such authority;
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1 (2) evaluate the utility of such Acts in facilitat2 ing recovery from disasters consistent with the safe3 ty and soundness of depository institutions; and

4 (3) contain recommendations with respect to

5 whether the authority granted by this Act should be

6 made permanent.

7 (b) REPORT TO THE CONGRESS.—Not later than 1

8 year after the date of enactment of this Act, the Secretary

9 of the Treasury shall submit a report to the Congress con10 taining the results of the study conducted under sub11 section (a), together with any recommendations for legisla12 tive or administrative actions that should be taken.

13 SEC. 4. SENSE OF THE CONGRESS REGARDING THE

14 FLOODS OF 1993.

15 It is the sense of the Congress that the Board of Gov16 ernors of the Federal Reserve System, the Comptroller of

17 the Currency, the Director of the Office of Thrift Super18 vision, the Federal Deposit Insurance Corporation, and

19 the National Credit Union Administration should encour20 age depository institutions in areas affected by such major

21 disasters as the flooding of the Mississippi, Missouri, Kan22 sas, Illinois, and Des Moines rivers, and the tributaries
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1 of such rivers, to meet the financial services needs of their

2 communities.

Passed the Senate July 30 (legislative day, June

30), 1993.

Attest:

Secretary.