I 

112TH CONGRESS 

1ST SESSION H. R. 1723 

To permit certain current loans that would otherwise be treated as nonaccrual loans as accrual loans for certain purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 4, 2011 

Mr. POSEY (for himself, Mr. PAUL, Mr. WESTMORELAND, Mr. ISSA, Mr. 

WEBSTER, Mr. JONES, Mr. MANZULLO, Mr. MILLER of Florida, Mrs. 

HARTZLER, Mr. PITTS, Mr. FLORES, Mr. GOHMERT, Mr. BARTLETT, Mr. 

PEARCE, Mr. GINGREY of Georgia, Mr. MCCOTTER, Mr. LUETKEMEYER, 

and Mr. THOMPSON of Pennsylvania) introduced the following bill; which 

was referred to the Committee on Financial Services 

A BILL 

To permit certain current loans that would otherwise be 

treated as non-accrual loans as accrual loans for certain 

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 ‘‘Common Sense Eco5 nomic Recovery Act of 2011’’. 

6 SEC. 2. TREATMENT OF CERTAIN LOANS. 

7 (a) IN GENERAL.—For purposes of determining cap8 ital requirements or measuring capital of an insured deVerDate Mar 15 2010 04:03 May 05, 2011 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1723.IH H1723

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1 pository institution under section 38 of the Federal De2 posit Insurance Act (12 U.S.C. 1831o) or any other provi3 sion of law or regulatory guidance, an insured depository 

4 institution that would otherwise be required to treat a loan 

5 as a non-accrual loan may treat such loan as an accrual 

6 loan, if— 

7 (1) the loan is current; 

8 (2) during the previous 6-month period, no 

9 monthly payment on the loan has been more than 30 

10 days delinquent; 

11 (3) the loan is an amortizing loan; and 

12 (4) the payments being made on the loan are 

13 not being funded through an interest reserve ac14 count. 

15 (b) EQUALITY OF TREATMENT FOR MODIFIED

16 MORTGAGE LOANS.—Subsection (a) shall apply to modi17 fied mortgage loans, including those loans that meet the 

18 criteria for troubled debt restructuring, to the same extent 

19 as non-modified mortgage loans, as long as the modified 

20 mortgage loans also meet the requirements under para21 graphs (1) through (4) of subsection (a). 

22 (c) NO ADDITIONAL ADVERSE TREATMENT.—With 

23 respect to a loan held by an insured depository institution 

24 and treated as an accrual loan by reason of subsection 

25 (a), an appropriate Federal banking agency may not imVerDate Mar 15 2010 21:01 May 05, 2011 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1723.IH H1723

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1 pose any additional accounting requirements on such insti2 tution with respect to such loan compared to the require3 ments that would otherwise have been placed on such in4 stitution with respect to such loan if such loan were not 

5 being treated as an accrual loan by reason of subsection 

6 (a), if the result of such additional requirement would ad7 versely impact the measurement of capital of the institu8 tion. 

9 SEC. 3. STUDY. 

10 (a) IN GENERAL.—The Financial Stability Oversight 

11 Council shall conduct a study of how best to prevent con12 tradictory guidance from being issued by appropriate Fed13 eral banking agencies to insured depository institutions 

14 with respect to loan classifications and capital require15 ments. 

16 (b) REPORT.—Not later than the end of the 60-day 

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

18 the Financial Stability Oversight Council shall issue a re19 port to the Congress containing— 

20 (1) all determinations and conclusions made by 

21 the Council in carrying out the study required under 

22 subsection (a); and 

23 (2) legislative recommendations that the Coun24 cil believe will prevent contradictory guidance from 

25 being issued by appropriate Federal banking agenVerDate Mar 15 2010 04:03 May 05, 2011 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1723.IH H1723

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1 cies to insured depository institutions with respect to 

2 loan classifications and capital requirements. 

3 SEC. 4. DEFINITIONS. 

4 For purposes of this Act, the terms ‘‘appropriate 

5 Federal banking agency’’ and ‘‘insured depository institu6 tion’’ shall have the meaning given those terms, respec7 tively, under section 3 of the Federal Deposit Insurance 

8 Act (12 U.S.C. 1813). 

9 SEC. 5. SUNSET. 

10 Effective after the end of the 2-year period beginning 

11 on the date of the enactment of this Act, this Act shall 

12 cease to have any force or effect. 

Æ 


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