II

103D CONGRESS

2D SESSION S. 2430

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.

IN THE SENATE OF THE UNITED STATES

AUGUST 25 (legislative day, AUGUST 18), 1994

Mr. NUNN (for himself and Mr. COVERDELL) introduced the following bill;

which was read twice, considered, read the third time, and passed

A BILL

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,

3 SECTION 1. DEPOSITORY INSTITUTIONS DISASTER RELIEF.

4 (a) TRUTH IN LENDING ACT; EXPEDITED FUNDS

5 AVAILABILITY ACT.—

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

7 day period beginning on the date of enactment of

8 this Act, the Board of Governors of the Federal Re-
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1 serve System may make exceptions to the Truth in

2 Lending Act for transactions within an area in

3 which the President, pursuant to section 401 of the

4 Robert T. Stafford Disaster Relief and Emergency

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

6 1994, that a major disaster exists, or within an area

7 determined to be eligible for disaster relief under

8 other Federal law by reason of damage related to

9 the 1994 flooding in Georgia, Alabama, and Florida

10 resulting from Tropical Storm Alberto, if the Board

11 determines that the exception can reasonably be ex12 pected to alleviate hardships to the public resulting

13 from such disaster that outweigh possible adverse

14 effects.

15 (2) EXPEDITED FUNDS AVAILABILITY ACT.—

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

17 enactment of this Act, the Board of Governors of

18 the Federal Reserve System may make exceptions to

19 the Expedited Funds Availability Act for depository

20 institution offices located within any area referred to

21 in paragraph (1) of this section if the Board deter22 mines that the exception can reasonably be expected

23 to alleviate hardships to the public resulting from

24 such disaster that outweigh possible adverse effects.
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1 (3) TIME LIMIT ON EXCEPTIONS.—Any excep2 tion made under this subsection shall expire not

3 later than January 1, 1996.

4 (4) PUBLICATION REQUIRED.—The Board of

5 Governors of the Federal Reserve System shall pub6 lish in the Federal Register a statement that—

7 (A) describes any exception made under

8 this subsection; and

9 (B) explains how the exception can reason10 ably be expected to produce benefits to the pub11 lic that outweigh possible adverse effects.

12 (b) DEPOSIT OF INSURANCE PROCEEDS.—

13 (1) IN GENERAL.—The appropriate Federal

14 banking agency may, by order, permit an insured de15 pository institution to subtract from the institution’s

16 total assets, in calculating compliance with the lever17 age limit prescribed under section 38 of the Federal

18 Deposit Insurance Act, an amount not exceeding the

19 qualifying amount attributable to insurance pro20 ceeds, if the agency determines that—

21 (A) the institution—

22 (i) had its principal place of business

23 within an area in which the President, pur24 suant to section 401 of the Robert T. Staf25 ford Disaster Relief and Emergency Assist-
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1 ance Act, has determined, on or after July

2 1, 1994, that a major disaster exists, or

3 within an area determined to be eligible for

4 disaster relief under other Federal law by

5 reason of damage related to the 1994

6 flooding in Georgia, Alabama, and Florida

7 resulting from Tropical Storm Alberto, on

8 the day before the date of any such deter9 mination;

10 (ii) derives more than 60 percent of

11 its total deposits from persons who nor12 mally reside within, or whose principal

13 place of business is normally within, areas

14 of intense devastation caused by the major

15 disaster;

16 (iii) was adequately capitalized (as de17 fined in section 38 of the Federal Deposit

18 Insurance Act) before the major disaster;

19 and

20 (iv) has an acceptable plan for manag21 ing the increase in its total assets and total

22 deposits; and

23 (B) the subtraction is consistent with the

24 purpose of section 38 of the Federal Deposit

25 Insurance Act.
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1 (2) TIME LIMIT ON EXCEPTIONS.—Any excep2 tion made under this subsection shall expire not

3 later than January 1, 1996.

4 (3) DEFINITIONS.—For purposes of this sub5 section, the following definitions shall apply:

6 (A) APPROPRIATE FEDERAL BANKING

7 AGENCY.—The term ‘‘appropriate Federal

8 banking agency’’ has the same meaning as in

9 section 3 of the Federal Deposit Insurance Act.

10 (B) INSURED DEPOSITORY INSTITUTION.—

11 The term ‘‘insured depository institution’’ has

12 the same meaning as in section 3 of the Federal

13 Deposit Insurance Act.

14 (C) LEVERAGE LIMIT.—The term ‘‘lever15 age limit’’ has the same meaning as in section

16 38 of the Federal Deposit Insurance Act.

17 (D) QUALIFYING AMOUNT ATTRIBUTABLE

18 TO INSURANCE PROCEEDS.—The term ‘‘qualify19 ing amount attributable to insurance proceeds’’

20 means the amount (if any) by which the institu21 tion’s total assets exceed the institution’s aver22 age total assets during the calendar quarter

23 ending before the date of any determination re24 ferred to in paragraph (1)(A)(i), because of the

25 deposit of insurance payments or governmental
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1 assistance made with respect to damage caused

2 by, or other costs resulting from, the major dis3 aster.

4 (c) BANKING AGENCY PUBLICATION REQUIRE5 MENTS.—

6 (1) IN GENERAL.—A qualifying regulatory

7 agency may take any of the following actions with

8 respect to depository institutions or other regulated

9 entities whose principal place of business is within,

10 or with respect to transactions or activities within,

11 an area in which the President, pursuant to section

12 401 of the Robert T. Stafford Disaster Relief and

13 Emergency Assistance Act, has determined, on or

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

15 within an area determined to be eligible for disaster

16 relief under other Federal law by reason of damage

17 related to the 1994 flooding in Georgia, Alabama,

18 and Florida resulting from Tropical Storm Alberto,

19 if the agency determines that the action would facili20 tate recovery from the major disaster:

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

22 authority under provisions of law other than

23 this subsection without complying with—

24 (i) any requirement of section 553 of

25 title 5, United States Code; or
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1 (ii) any provision of law that requires

2 notice or opportunity for hearing or sets

3 maximum or minimum time limits with re4 spect to agency action.

5 (B) PUBLICATION REQUIREMENTS.—Mak6 ing exceptions, with respect to institutions or

7 other entities for which the agency is the pri8 mary Federal regulator, to—

9 (i) any publication requirement with

10 respect to establishing branches or other

11 deposit-taking facilities; or

12 (ii) any similar publication require13 ment.

14 (2) PUBLICATION REQUIRED.—A qualifying

15 regulatory agency shall publish in the Federal Reg16 ister a statement that—

17 (A) describes any action taken under this

18 subsection; and

19 (B) explains the need for the action.

20 (3) QUALIFYING REGULATORY AGENCY DE21 FINED.—For purposes of this subsection, the term

22 ‘‘qualifying regulatory agency’’ means—

23 (A) the Board of Governors of the Federal

24 Reserve System;

25 (B) the Comptroller of the Currency;
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1 (C) the Director of the Office of Thrift Su2 pervision;

3 (D) the Federal Deposit Insurance Cor4 poration;

5 (E) the Financial Institutions Examination

6 Council;

7 (F) the National Credit Union Administra8 tion; and

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

10 United States Code, the Secretary of the Treas11 ury.

12 (4) EXPIRATION.—Any exception made under

13 this subsection shall expire not later than January

14 1, 1996.

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

16 the Congress that the Board of Governors of the Federal

17 Reserve System, the Comptroller of the Currency, the Di18 rector of the Office of Thrift Supervision, the Federal De19 posit Insurance Corporation, and the National Credit

20 Union Administration should encourage depository insti21 tutions to meet the financial services needs of their com22 munities and customers located in areas affected by the

23 1994 flooding in Georgia, Alabama, and Florida resulting

24 from Tropical Storm Alberto.
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1 (e) OTHER AUTHORITY NOT AFFECTED.—Nothing

2 in this section limits the authority of any department or

3 agency under any other provision of law.

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