I

103D CONGRESS

2D SESSION H. R. 3799

To facilitate recovery from the recent earthquakes in California by providing

greater flexibility for depository institutions and their regulators, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 3, 1994

Mr. GRAMS (for himself, Mr. DOOLEY, Mr. MCCANDLESS, Mr. HUFFINGTON,

Mr. COX, Mr. CALVERT, Mr. MCKEON, Mr. GALLEGLY, and Mr. MCCOLLUM) introduced the following bill; which was referred jointly to the Committees on Banking, Finance and Urban Affairs and the Judiciary

A BILL

To facilitate recovery from the recent earthquakes in California by providing greater flexibility for depository institutions and their regulators, and for other purposes.

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 ‘‘Depository Institutions

5 Disaster Relief Act of 1994’’.
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1 SEC. 2. TRUTH IN LENDING ACT; EXPEDITED FUNDS

2 AVAILABILITY ACT.

3 (a) TRUTH IN LENDING ACT.—During the 180-day

4 period beginning on the date of enactment of this Act, the

5 Board of Governors of the Federal Reserve System may

6 make exceptions to the Truth in Lending Act for trans7 actions within an area in which the President, pursuant

8 to section 401 of the Robert T. Stafford Disaster Relief

9 and Emergency Assistance Act, has determined that a

10 major disaster exists, or within an area determined to be

11 eligible for disaster relief under other Federal law, by rea12 son of damage related to the 1994 earthquakes in Califor13 nia, if the Board determines that the exception can rea14 sonably be expected to alleviate hardships to the public

15 resulting from such disaster that outweigh possible ad16 verse effects.

17 (b) EXPEDITED FUNDS AVAILABILITY ACT.—During

18 the 180-day period beginning on the date of enactment

19 of this Act, the Board of Governors of the Federal Reserve

20 System may make exceptions to the Expedited Funds

21 Availability Act for depository institution offices located

22 within any area referred to in subsection (a) of this section

23 if the Board determines that the exception can reasonably

24 be expected to alleviate hardships to the public resulting

25 from the disaster referred to in such subsection that out26 weigh possible adverse effects.
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1 (c) TIME LIMIT ON EXCEPTIONS.—Any exception

2 made under this section shall expire not later than the

3 earlier of—

4 (1) 1 year after the date of enactment of this

5 Act; or

6 (2) 1 year after the date of any determination

7 referred to in subsection (a).

8 (d) PUBLICATION REQUIRED.—The Board of Gov9 ernors of the Federal Reserve System shall publish in the

10 Federal Register a statement that—

11 (1) describes any exception made under this

12 section; and

13 (2) explains how the exception can reasonably

14 be expected to produce benefits to the public that

15 outweigh possible adverse effects.

16 SEC. 3. DEPOSIT OF INSURANCE PROCEEDS.

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

18 agency may, by order, permit an insured depository insti19 tution, during the 18-month period beginning on the date

20 of enactment of this Act, to subtract from the institution’s

21 total assets, in calculating compliance with the leverage

22 limit prescribed under section 38 of the Federal Deposit

23 Insurance Act, an amount not exceeding the qualifying

24 amount attributable to insurance proceeds, if the agency

25 determines that—
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1 (1) the institution—

2 (A) had its principal place of business

3 within an area in which the President, pursuant

4 to section 401 of the Robert T. Stafford Disas5 ter Relief and Emergency Assistance Act, has

6 determined that a major disaster exists, or

7 within an area determined to be eligible for dis8 aster relief under other Federal law by reason

9 of damage related to the 1994 earthquakes in

10 California, on the day before the date of any

11 such determination;

12 (B) derives more than 60 percent of its

13 total deposits from persons who normally reside

14 within, or whose principal place of business is

15 normally within, areas of intense devastation

16 caused by the major disaster;

17 (C) was adequately capitalized (as defined

18 in section 38 of the Federal Deposit Insurance

19 Act) before the major disaster; and

20 (D) has an acceptable plan for managing

21 the increase in its total assets and total depos22 its; and

23 (2) the subtraction is consistent with the pur24 pose of section 38 of the Federal Deposit Insurance

25 Act.
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1 (b) DEFINITIONS.—For purposes of this section, the

2 following definitions shall apply:

3 (1) APPROPRIATE FEDERAL BANKING AGEN4 CY.—The term ‘‘appropriate Federal banking agen5 cy’’ has the same meaning as in section 3 of the

6 Federal Deposit Insurance Act.

7 (2) INSURED DEPOSITORY INSTITUTION.—The

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

9 meaning as in section 3 of the Federal Deposit In10 surance Act.

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

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

13 Federal Deposit Insurance Act.

14 (4) QUALIFYING AMOUNT ATTRIBUTABLE TO

15 INSURANCE PROCEEDS.—The term ‘‘qualifying

16 amount attributable to insurance proceeds’’ means

17 the amount (if any) by which the institution’s total

18 assets exceed the institution’s average total assets

19 during the calendar quarter ending before the date

20 of any determination referred to in subsection

21 (a)(1)(A), because of the deposit of insurance pay22 ments or governmental assistance made with respect

23 to damage caused by, or other costs resulting from,

24 the major disaster.
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1 SEC. 4. BANKING AGENCY PUBLICATION REQUIREMENTS.

2 (a) IN GENERAL.—During the 180-day period begin3 ning on the date of enactment of this Act, a qualifying

4 regulatory agency may take any of the following actions

5 with respect to depository institutions or other regulated

6 entities whose principal place of business is within, or with

7 respect to transactions or activities within, an area in

8 which the President, pursuant to section 401 of the Robert

9 T. Stafford Disaster Relief and Emergency Assistance

10 Act, has determined that a major disaster exists, or within

11 an area determined to be eligible for disaster relief under

12 other Federal law by reason of damage related to the 1994

13 earthquakes in California, if the agency determines that

14 the action would facilitate recovery from the major disas15 ter:

16 (1) PROCEDURE.—Exercising the agency’s au17 thority under provisions of law other than this sec18 tion without complying with—

19 (A) any requirement of section 553 of title

20 5, United States Code; or

21 (B) any provision of law that requires no22 tice or opportunity for hearing or sets maxi23 mum or minimum time limits with respect to

24 agency action.

25 (2) PUBLICATION REQUIREMENTS.—Making ex26 ceptions, with respect to institutions or other entities
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1 for which the agency is the primary Federal regu2 lator, to—

3 (A) any publication requirement with re4 spect to establishing branches or other deposit5 taking facilities; or

6 (B) any similar publication requirement.

7 (b) PUBLICATION REQUIRED.—A qualifying regu8 latory agency shall publish in the Federal Register a state9 ment that—

10 (1) describes any action taken under this sec11 tion; and

12 (2) explains the need for the action.

13 (c) QUALIFYING REGULATORY AGENCY DEFINED.—

14 For purposes of this section, the term ‘‘qualifying regu15 latory agency’’ means—

16 (1) the Board of Governors of the Federal Re17 serve System;

18 (2) the Comptroller of the Currency;

19 (3) the Director of the Office of Thrift Super20 vision;

21 (4) the Federal Deposit Insurance Corporation;

22 (5) the Financial Institutions Examination

23 Council;

24 (6) the National Credit Union Administration;

25 and
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1 (7) with respect to chapter 53 of title 31,

2 United States Code, the Secretary of the Treasury.

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

4 (a) STUDY.—The Comptroller General of the United

5 States shall conduct a study that—

6 (1) examines how the agencies and entities

7 granted authority by the Depository Institutions

8 Disaster Relief Act of 1993, and by this Act have

9 exercised such authority;

10 (2) evaluates the utility of such Acts in facili11 tating recovery from disasters consistent with the

12 safety and soundness of depository institutions; and

13 (3) contains recommendations with respect to

14 whether the authority granted by this Act should be

15 made permanent.

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

17 months after the date of the enactment of this Act, the

18 Comptroller General of the United States shall submit to

19 the Congress a report on the results of the study required

20 by subsection (a).

21 SEC. 6. SENSE OF THE CONGRESS.

22 It is the sense of the Congress that the Board of Gov23 ernors of the Federal Reserve System, the Comptroller of

24 the Currency, the Director of the Office of Thrift Super25 vision, the Federal Deposit Insurance Corporation, and
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1 the National Credit Union Administration should encour2 age depository institutions meet the financial services

3 needs of their communities and customers located in areas

4 affected by the 1994 earthquakes in California.

5 SEC. 7. OTHER AUTHORITY NOT AFFECTED.

6 No provision of this Act shall be construed as limiting

7 the authority of any department or agency under any

8 other provision of law.

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