109TH CONGRESS 
1ST SESSION 
H. R. 3945
AN ACT 
To facilitate recovery from the effects of Hurricane 
Katrina by providing greater flexibility for, and 
temporary waivers of certain requirements and 
fees imposed on, depository institutions, credit 
unions, and Federal regulatory agencies, and for 
other purposes.
109TH CONGRESS 
1ST SESSION H. R. 3945
AN ACT 
To facilitate recovery from the effects of Hurricane Katrina 
by providing greater flexibility for, and temporary waiv-
ers of certain requirements and fees imposed on, deposi-
tory institutions, credit unions, and Federal regulatory 
agencies, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Hurricane Katrina Fi-
nancial Services Relief Act of 2005’’. 
SEC. 2. FINDINGS. 
The Congress finds as follows: 
(1) On August 29, 2005, Hurricane Katrina, a 
category 4 storm with an impact area of 90,000 
square miles, reached landfall devastating the States 
of Louisiana, Mississippi and Alabama, causing loss 
of life and property. 
(2) Levee breaches in the flood control system 
for the city of New Orleans as a result of Hurricane 
Katrina resulted in tragic flooding, causing addi-
tional loss of life and property. 
(3) Due to the substantial damage to both 
property and infrastructure, more than 1,000,000 
people were made homeless or brought under finan-
cial duress by the effects of Hurricane Katrina. 
(4) At least 120 insured depository institutions 
and 96 insured credit unions are located in the areas 
of Texas, Louisiana, Mississippi and Alabama, de-
clared as major disaster areas by the President.
SEC. 3. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) APPROPRIATE
FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’ has the same meaning as in section 3 of the 
Federal Deposit Insurance Act. 
(2) INSURED CREDIT UNION.—The term ‘‘in-
sured credit union’’ has the same meaning as in sec-
tion 101 of the Federal Credit Union Act. 
(3) INSURED DEPOSITORY INSTITUTION.—The 
term ‘‘insured depository institution’’ has the same 
meaning as in section 3 of the Federal Deposit In-
surance Act. 
(4) QUALIFIED
DISASTER
AREA.—The term 
‘‘qualified disaster area’’ means any area within Ala-
bama, Louisiana, Florida, or Mississippi in which 
the President, pursuant to section 401 of the Robert 
T. Stafford Disaster Relief and Emergency Assist-
ance Act, has determined, on or after August 25, 
2005, that a major disaster exists due to Hurricane 
Katrina. 
SEC. 4. SENSE OF THE CONGRESS ON CASHING OF GOV-
ERNMENT CHECKS. 
It is the sense of the Congress that—
(1) it is vital that insured depository institu-
tions and insured credit unions continue to provide 
financial services to consumers displaced or other-
wise affected by Hurricane Katrina, which includes 
the cashing of Federal government assistance and 
benefit checks; 
(2) the Secretary of the Treasury and the Fed-
eral financial regulators should seek to educate in-
sured depository institutions and insured credit 
unions on the proper application of the guidance 
issued by the Secretary on cashing of Federal gov-
ernment assistance and benefit checks and published 
in the Federal Register while such guidance is in ef-
fect; and 
(3) the Federal financial regulators should con-
tinue to work with the insured depository institu-
tions and insured credit unions operating under ex-
traordinary circumstances to facilitate the cashing of 
Federal government assistance and benefit checks. 
SEC. 5. WAIVER OF FEDERAL RESERVE BOARD FEES FOR 
CERTAIN SERVICES. 
Notwithstanding section 11A of the Federal Reserve 
Act or any other provision of law, during the effective pe-
riod of this section, a Federal reserve bank shall waive 
or rebate any transaction fee for wire transfer services
that otherwise would be imposed on any insured deposi-
tory institution or insured credit union that as of August 
28, 2005, was headquartered in a qualified disaster area. 
SEC. 6. FLEXIBILITY IN CAPITAL AND NET WORTH STAND-
ARDS FOR AFFECTED INSTITUTIONS. 
(a) IN GENERAL.—Notwithstanding section 38 of the 
Federal Deposit Insurance Act, section 216 of the Federal 
Credit Union Act, or any other provision of Federal law, 
during the 18-month period beginning on the date of en-
actment of this Act, the appropriate Federal banking 
agency and the National Credit Union Administration may 
forbear from taking any action required under any such 
section or provision, on a case-by-case basis, with respect 
to any undercapitalized insured depository institution or 
undercapitalized insured credit union that is not signifi-
cantly or critically undercapitalized, if such agency or Ad-
ministration determines that—
(1) the insured depository institution or insured 
credit union derives more than 50 percent of its 
total deposits from persons who normally reside 
within, or whose principal place of business is nor-
mally within, a qualified disaster area; 
(2) the insured depository institution or insured 
credit union was at least adequately capitalized as of 
August 25, 2005;
(3) the reduction in the capital or net worth 
category of the insured depository institution or in-
sured credit union is directly attributable to the im-
pact of Hurricane Katrina; and 
(4) forbearance from any such action—
(A) would facilitate the recovery of the in-
sured depository institution or insured credit 
union from the disaster in accordance with a re-
covery plan or a capital or net worth restoration 
plan established by such depository institution 
or credit union; and 
(B) would be consistent with safe and 
sound practices. 
(b) CAPITAL AND NET WORTH CATEGORIES DE-
FINED.—For purposes of this section, the terms relating 
to capital categories for insured depository institutions 
have the same meaning as in section 38(b)(1) of the Fed-
eral Deposit Insurance Act and the terms relating to net 
worth categories for insured credit unions have the same 
meaning as in section 216(c)(1) of the Federal Credit 
Union Act. 
SEC. 7. DEPOSIT OF INSURANCE PROCEEDS. 
(a) IN GENERAL.—The appropriate Federal banking 
agency and the National Credit Union Administration 
may, by order, permit an insured depository institution or