I 

114TH CONGRESS 

1ST SESSION H. R. 3109 

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

IN THE HOUSE OF REPRESENTATIVES 

JULY 16, 2015 

Mr. POSEY 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, 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 ‘‘Common Sense Eco5 nomic Recovery Act of 2015’’. 

6 SEC. 2. TREATMENT OF CERTAIN LOANS. 

7 (a) IN GENERAL.—For purposes of determining cap8 ital requirements or measuring capital of an insured de9 pository institution under section 38 of the Federal De10 posit Insurance Act (12 U.S.C. 1831o) or any other proviVerDate Sep 11 2014 07:11 Jul 21, 2015 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3109.IH H3109

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1 sion of law or regulatory guidance, an insured depository 

2 institution that would otherwise be required to treat a loan 

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

4 loan, if— 

5 (1) the loan is current; 

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

7 monthly payment on the loan has been more than 30 

8 days delinquent; and 

9 (3) the payments on the loan are being made 

10 pursuant to the contractual terms of the loan agree11 ment and any refinances and modifications that are 

12 agreed to by all of the parties. 

13 (b) DEMONSTRATION OF ABILITY TO PERFORM ON

14 A LOAN.—Notwithstanding subsection (a), a modified or 

15 restructured loan may not be treated as a non-accrual loan 

16 if the borrower demonstrates the ability to perform on 

17 such a loan— 

18 (1) over a period of 6 months; or 

19 (2) with respect to a loan on a quarterly, semi20 annual, or longer repayment schedule, over a period 

21 of 3 consecutive payments. 

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 Sep 11 2014 07:11 Jul 21, 2015 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3109.IH H3109

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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 (d) PROHIBITION ON THE RE-CLASSIFICATION OF

10 LOANS BASED SOLELY ON COLLATERAL VALUE.—An ap11 propriate Federal banking agency may not require an in12 sured depository institution to treat a loan as a non-ac13 crual loan solely on the basis that the collateral of such 

14 loan has reduced in value. 

15 (e) PROVISIONS NOT APPLICABLE TO PUBLICLY

16 TRADED INSTITUTIONS.—This section shall not apply 

17 with respect to any issuer of a security registered pursuant 

18 to section 12 of the Securities Exchange Act of 1934 (15 

19 U.S.C. 78l). 

20 SEC. 3. STUDY. 

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

22 Council shall conduct a study of how best to prevent con23 tradictory guidance from being issued by appropriate Fed24 eral banking agencies to insured depository institutions 


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1 with respect to loan classifications and capital require2 ments. 

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

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

5 the Financial Stability Oversight Council shall issue a re6 port to the Congress containing— 

7 (1) all determinations and conclusions made by 

8 the Council in carrying out the study required under 

9 subsection (a); and 

10 (2) legislative recommendations that the Coun11 cil believes will prevent contradictory guidance from 

12 being issued by appropriate Federal banking agen13 cies to insured depository institutions with respect to 

14 loan classifications and capital requirements. 

15 SEC. 4. DEFINITIONS. 

16 For purposes of this Act: 

17 (1) APPROPRIATE FEDERAL BANKING AGEN18 CY.—The term ‘‘appropriate Federal banking agen19 cy’’— 

20 (A) has the meaning given such term 

21 under section 3 of the Federal Deposit Insur22 ance Act (12 U.S.C. 1813); and 

23 (B) means the National Credit Union Ad24 ministration Board, in the case of a credit 

25 union. 


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1 (2) INSURED DEPOSITORY INSTITUTION.—The 

2 term ‘‘insured depository institution’’ means— 

3 (A) an insured depository institution, as 

4 defined under section 3 of the Federal Deposit 

5 Insurance Act (12 U.S.C. 1813); and 

6 (B) a credit union. 

7 SEC. 5. SUNSET. 

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

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

10 cease to have any force or effect. 

Æ 


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