103D CONGRESS

1ST SESSION S. 1273

AMENDMENTS
In the House of Representatives, U. S.,

August 3, 1993.

Resolved, That the bill from the Senate (S. 1273) entitled ‘‘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’’, do

pass with the following

AMENDMENTS:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Depository Institutions

3 Disaster Relief Act of 1993’’.

4 SEC. 2. TRUTH IN LENDING ACT; EXPEDITED FUNDS AVAIL5 ABILITY ACT.

6 (a) TRUTH IN LENDING ACT.—During the 240-day pe7 riod beginning on the date of enactment of this Act, the

8 Board of Governors of the Federal Reserve System may

9 make exceptions to the Truth in Lending Act for trans10 actions within an area in which the President, pursuant

11 to section 401 of the Robert T. Stafford Disaster Relief and

12 Emergency Assistance Act, has determined, on or after

13 April 1, 1993, that a major disaster exists, or within an

14 area determined to be eligible for disaster relief under other
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1 Federal law by reason of damage related to the 1993 flood2 ing of the Mississippi River and its tributaries, if the Board

3 determines that the exception can reasonably be expected

4 to alleviate hardships to the public resulting from such dis5 aster that outweigh possible adverse effects.

6 (b) EXPEDITED FUNDS AVAILABILITY ACT.—During

7 the 240-day period beginning on the date of enactment of

8 this Act, the Board of Governors of the Federal Reserve Sys9 tem may make exceptions to the Expedited Funds Avail10 ability Act for depository institution offices located within

11 any area referred to in subsection (a) of this section if the

12 Board determines that the exception can reasonably be ex13 pected to alleviate hardships to the public resulting from

14 such disaster that outweigh possible adverse effects.

15 (c) TIME LIMIT ON EXCEPTIONS.—Any exception

16 made under this section shall expire not later than October

17 1, 1994.

18 (d) PUBLICATION REQUIRED.—The Board of Gov19 ernors of the Federal Reserve System shall publish in the

20 Federal Register a statement that—

21 (1) describes any exception made under this sec22 tion; and

23 (2) explains how the exception can reasonably be

24 expected to produce benefits to the public that out25 weigh possible adverse effects.
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1 SEC. 3. DEPOSIT OF INSURANCE PROCEEDS.

2 (a) IN GENERAL.—The appropriate Federal banking

3 agency may, by order, permit an insured depository insti4 tution to subtract from the institution’s total assets, in cal5 culating compliance with the leverage limit prescribed

6 under section 38 of the Federal Deposit Insurance Act, an

7 amount not exceeding the qualifying amount attributable

8 to insurance proceeds, if the agency determines that—

9 (1) the institution—

10 (A) had its principal place of business with11 in an area in which the President, pursuant to

12 section 401 of the Robert T. Stafford Disaster

13 Relief and Emergency Assistance Act, has deter14 mined, on or after April 1, 1993, that a major

15 disaster exists, or within an area determined to

16 be eligible for disaster relief under other Federal

17 law by reason of damage related to the 1993

18 flooding of the Mississippi River and its tribu19 taries, on the day before the date of any such de20 termination;

21 (B) derives more than 60 percent of its total

22 deposits from persons who normally reside with23 in, or whose principal place of business is nor24 mally within, areas of intense devastation caused

25 by the major disaster;
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1 (C) was adequately capitalized (as defined

2 in section 38 of the Federal Deposit Insurance

3 Act) before the major disaster; and

4 (D) has an acceptable plan for managing

5 the increase in its total assets and total deposits;

6 and

7 (2) the subtraction is consistent with the purpose

8 of section 38 of the Federal Deposit Insurance Act.

9 (b) TIME LIMIT ON EXCEPTIONS.—Any exception

10 made under this section shall expire not later than April

11 1, 1995.

12 (c) DEFINITIONS.—For purposes of this section:

13 (1) APPROPRIATE FEDERAL BANKING AGENCY.—

14 The term ‘‘appropriate Federal banking agency’’ has

15 the same meaning as in section 3 of the Federal De16 posit Insurance Act.

17 (2) INSURED DEPOSITORY INSTITUTION.—The

18 term ‘‘insured depository institution’’ has the same

19 meaning as in section 3 of the Federal Deposit Insur20 ance Act.

21 (3) LEVERAGE LIMIT.—The term ‘‘leverage

22 limit’’ has the same meaning as in section 38 of the

23 Federal Deposit Insurance Act.

24 (4) QUALIFYING AMOUNT ATTRIBUTABLE TO IN25 SURANCE PROCEEDS.—The term ‘‘qualifying amount
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1 attributable to insurance proceeds’’ means the amount

2 (if any) by which the institution’s total assets exceed

3 the institution’s average total assets during the cal4 endar quarter ending before the date of any deter5 mination referred to in subsection (a)(1)(A), because

6 of the deposit of insurance payments or governmental

7 assistance made with respect to damage caused by, or

8 other costs resulting from, the major disaster.

9 SEC. 4. BANKING AGENCY PUBLICATION REQUIREMENTS.

10 (a) IN GENERAL.—A qualifying regulatory agency

11 may take any of the following actions with respect to depos12 itory institutions or other regulated entities whose principal

13 place of business is within, or with respect to transactions

14 or activities within, an area in which the President, pursu15 ant to section 401 of the Robert T. Stafford Disaster Relief

16 and Emergency Assistance Act, has determined, on or after

17 April 1, 1993, that a major disaster exists, or within an

18 area determined to be eligible for disaster relief under other

19 Federal law by reason of damage related to the 1993 flood20 ing of the Mississippi River and its tributaries, if the agen21 cy determines that the action would facilitate recovery from

22 the major disaster:

23 (1) PROCEDURE.—Exercising the agency’s au24 thority under provisions of law other than this section

25 without complying with—
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1 (A) any requirement of section 553 of title

2 5, United States Code; or

3 (B) any provision of law that requires no4 tice or opportunity for hearing or sets maximum

5 or minimum time limits with respect to agency

6 action.

7 (2) PUBLICATION REQUIREMENTS.—Making ex8 ceptions, with respect to institutions or other entities

9 for which the agency is the primary Federal regu10 lator, to—

11 (A) any publication requirement with re12 spect to establishing branches or other deposit13 taking facilities; or

14 (B) any similar publication requirement.

15 (b) PUBLICATION REQUIRED.—A qualifying regu16 latory agency shall publish in the Federal Register a state17 ment that—

18 (1) describes any action taken under this section;

19 and

20 (2) explains the need for the action.

21 (c) QUALIFYING REGULATORY AGENCY DEFINED.—

22 For purposes of this section, the term ‘‘qualifying regulatory

23 agency’’ means—

24 (1) the Board of Governors of the Federal Re25 serve System;
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1 (2) the Comptroller of the Currency;

2 (3) the Director of the Office of Thrift Super3 vision;

4 (4) the Federal Deposit Insurance Corporation;

5 (5) the Financial Institutions Examination

6 Council;

7 (6) the National Credit Union Administration;

8 and

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

10 States Code, the Secretary of the Treasury.

11 (d) EXPIRATION.—Any exception made under this sec12 tion shall expire not later than April 1, 1994.

13 SEC. 5. STUDY; REPORT TO THE CONGRESS.

14 (a) STUDY.—The Secretary of the Treasury, after con15 sultation with the appropriate Federal banking agencies (as

16 defined in section 3 of the Federal Deposit Insurance Act),

17 shall conduct a study that—

18 (1) examines how the agencies and entities

19 granted authority by the Depository Institutions Dis20 aster Relief Act of 1992 and by this Act have exer21 cised such authority;

22 (2) evaluates the utility of such Acts in facilitat23 ing recovery from disasters consistent with the safety

24 and soundness of depository institutions; and
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1 (3) contains recommendations with respect to

2 whether the authority granted by this Act should be

3 made permanent.

4 (b) REPORT TO THE CONGRESS.—Not later than 18

5 months after the date of the enactment of this Act, the Sec6 retary of the Treasury shall submit to the Congress a report

7 on the results of the study required by subsection (a).

8 SEC. 6. SENSE OF THE CONGRESS.

9 It is the sense of the Congress that the Board of Gov10 ernors of the Federal Reserve System, the Comptroller of

11 the Currency, the Director of the Office of Thrift Super12 vision, the Federal Deposit Insurance Corporation, and the

13 National Credit Union Administration should encourage

14 depository institutions to meet the financial services needs

15 of their communities and customers located in areas affected

16 by the 1993 flooding of the Mississippi River and its tribu17 taries.

18 SEC. 7. OTHER AUTHORITY NOT AFFECTED.

19 Nothing in this Act limits the authority of any depart20 ment or agency under any other provision of law.

Amend the title so as to read: ‘‘An Act to facilitate

recovery from the recent flooding of the Mississippi River

and its tributaries by providing greater flexibility for depository institutions and their regulators, and for other

purposes.’’.