IIA

103D CONGRESS

2D SESSION S. 2430

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 12, 1994

Referred to the Committee on Banking, Finance and Urban Affairs

AN ACT

To facilitate recovery from the recent flooding in Georgia,

Alabama, and Florida resulting from Tropical Storm

Alberto 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,
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1 SECTION 1. DEPOSITORY INSTITUTIONS DISASTER RELIEF.

2 (a) TRUTH IN LENDING ACT; EXPEDITED FUNDS

3 AVAILABILITY ACT.—

4 (1) TRUTH IN LENDING ACT.—During the 240-

5 day period beginning on the date of enactment of

6 this Act, the Board of Governors of the Federal Re7 serve System may make exceptions to the Truth in

8 Lending Act for transactions within an area in

9 which the President, pursuant to section 401 of the

10 Robert T. Stafford Disaster Relief and Emergency

11 Assistance Act, has determined, on or after July 1,

12 1994, that a major disaster exists, or within an area

13 determined to be eligible for disaster relief under

14 other Federal law by reason of damage related to

15 the 1994 flooding in Georgia, Alabama, and Florida

16 resulting from Tropical Storm Alberto, if the Board

17 determines that the exception can reasonably be ex18 pected to alleviate hardships to the public resulting

19 from such disaster that outweigh possible adverse ef20 fects.

21 (2) EXPEDITED FUNDS AVAILABILITY ACT.—

22 During the 240-day period beginning on the date of

23 enactment of this Act, the Board of Governors of

24 the Federal Reserve System may make exceptions to

25 the Expedited Funds Availability Act for depository

26 institution offices located within any area referred to
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1 in paragraph (1) of this section if the Board deter2 mines that the exception can reasonably be expected

3 to alleviate hardships to the public resulting from

4 such disaster that outweigh possible adverse effects.

5 (3) TIME LIMIT ON EXCEPTIONS.—Any excep6 tion made under this subsection shall expire not

7 later than January 1, 1996.

8 (4) PUBLICATION REQUIRED.—The Board of

9 Governors of the Federal Reserve System shall pub10 lish in the Federal Register a statement that—

11 (A) describes any exception made under

12 this subsection; and

13 (B) explains how the exception can reason14 ably be expected to produce benefits to the pub15 lic that outweigh possible adverse effects.

16 (b) DEPOSIT OF INSURANCE PROCEEDS.—

17 (1) IN GENERAL.—The appropriate Federal

18 banking agency may, by order, permit an insured de19 pository institution to subtract from the institution’s

20 total assets, in calculating compliance with the lever21 age limit prescribed under section 38 of the Federal

22 Deposit Insurance Act, an amount not exceeding the

23 qualifying amount attributable to insurance pro24 ceeds, if the agency determines that—

25 (A) the institution—
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1 (i) had its principal place of business

2 within an area in which the President, pur3 suant to section 401 of the Robert T. Staf4 ford Disaster Relief and Emergency Assist5 ance Act, has determined, on or after July

6 1, 1994, that a major disaster exists, or

7 within an area determined to be eligible for

8 disaster relief under other Federal law by

9 reason of damage related to the 1994

10 flooding in Georgia, Alabama, and Florida

11 resulting from Tropical Storm Alberto, on

12 the day before the date of any such deter13 mination;

14 (ii) derives more than 60 percent of

15 its total deposits from persons who nor16 mally reside within, or whose principal

17 place of business is normally within, areas

18 of intense devastation caused by the major

19 disaster;

20 (iii) was adequately capitalized (as de21 fined in section 38 of the Federal Deposit

22 Insurance Act) before the major disaster;

23 and
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1 (iv) has an acceptable plan for manag2 ing the increase in its total assets and total

3 deposits; and

4 (B) the subtraction is consistent with the

5 purpose of section 38 of the Federal Deposit

6 Insurance Act.

7 (2) TIME LIMIT ON EXCEPTIONS.—Any excep8 tion made under this subsection shall expire not

9 later than January 1, 1996.

10 (3) DEFINITIONS.—For purposes of this sub11 section, the following definitions shall apply:

12 (A) APPROPRIATE FEDERAL BANKING

13 AGENCY.—The term ‘‘appropriate Federal

14 banking agency’’ has the same meaning as in

15 section 3 of the Federal Deposit Insurance Act.

16 (B) INSURED DEPOSITORY INSTITUTION.—

17 The term ‘‘insured depository institution’’ has

18 the same meaning as in section 3 of the Federal

19 Deposit Insurance Act.

20 (C) LEVERAGE LIMIT.—The term ‘‘lever21 age limit’’ has the same meaning as in section

22 38 of the Federal Deposit Insurance Act.

23 (D) QUALIFYING AMOUNT ATTRIBUTABLE

24 TO INSURANCE PROCEEDS.—The term ‘‘qualify25 ing amount attributable to insurance proceeds’’
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1 means the amount (if any) by which the institu2 tion’s total assets exceed the institution’s aver3 age total assets during the calendar quarter

4 ending before the date of any determination re5 ferred to in paragraph (1)(A)(i), because of the

6 deposit of insurance payments or governmental

7 assistance made with respect to damage caused

8 by, or other costs resulting from, the major dis9 aster.

10 (c) BANKING AGENCY PUBLICATION REQUIRE11 MENTS.—

12 (1) IN GENERAL.—A qualifying regulatory

13 agency may take any of the following actions with

14 respect to depository institutions or other regulated

15 entities whose principal place of business is within,

16 or with respect to transactions or activities within,

17 an area in which the President, pursuant to section

18 401 of the Robert T. Stafford Disaster Relief and

19 Emergency Assistance Act, has determined, on or

20 after July 1, 1994, that a major disaster exists, or

21 within an area determined to be eligible for disaster

22 relief under other Federal law by reason of damage

23 related to the 1994 flooding in Georgia, Alabama,

24 and Florida resulting from Tropical Storm Alberto,
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1 if the agency determines that the action would facili2 tate recovery from the major disaster:

3 (A) PROCEDURE.—Exercising the agency’s

4 authority under provisions of law other than

5 this subsection without complying with—

6 (i) any requirement of section 553 of

7 title 5, United States Code; or

8 (ii) any provision of law that requires

9 notice or opportunity for hearing or sets

10 maximum or minimum time limits with re11 spect to agency action.

12 (B) PUBLICATION REQUIREMENTS.—Mak13 ing exceptions, with respect to institutions or

14 other entities for which the agency is the pri15 mary Federal regulator, to—

16 (i) any publication requirement with

17 respect to establishing branches or other

18 deposit-taking facilities; or

19 (ii) any similar publication require20 ment.

21 (2) PUBLICATION REQUIRED.—A qualifying

22 regulatory agency shall publish in the Federal Reg23 ister a statement that—

24 (A) describes any action taken under this

25 subsection; and
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1 (B) explains the need for the action.

2 (3) QUALIFYING REGULATORY AGENCY DE3 FINED.—For purposes of this subsection, the term

4 ‘‘qualifying regulatory agency’’ means—

5 (A) the Board of Governors of the Federal

6 Reserve System;

7 (B) the Comptroller of the Currency;

8 (C) the Director of the Office of Thrift Su9 pervision;

10 (D) the Federal Deposit Insurance Cor11 poration;

12 (E) the Financial Institutions Examination

13 Council;

14 (F) the National Credit Union Administra15 tion; and

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

17 United States Code, the Secretary of the Treas18 ury.

19 (4) EXPIRATION.—Any exception made under

20 this subsection shall expire not later than January

21 1, 1996.

22 (d) SENSE OF THE CONGRESS.—It is the sense of

23 the Congress that the Board of Governors of the Federal

24 Reserve System, the Comptroller of the Currency, the Di25 rector of the Office of Thrift Supervision, the Federal De-
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1 posit Insurance Corporation, and the National Credit

2 Union Administration should encourage depository insti3 tutions to meet the financial services needs of their com4 munities and customers located in areas affected by the

5 1994 flooding in Georgia, Alabama, and Florida resulting

6 from Tropical Storm Alberto.

7 (e) OTHER AUTHORITY NOT AFFECTED.—Nothing

8 in this section limits the authority of any department or

9 agency under any other provision of law.

Passed the Senate August 25 (legislative day, August 18), 1994.

Attest: MARTHA S. POPE,

Secretary.