I 
114TH CONGRESS 
1ST SESSION H. R. 3109 
To permit certain current loans that would otherwise be treated as non- 
accrual 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. 
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 ‘‘Common Sense Eco-
nomic Recovery Act of 2015’’. 
SEC. 2. TREATMENT OF CERTAIN LOANS. 
(a) IN GENERAL.—For purposes of determining cap-
ital requirements or measuring capital of an insured de-
pository institution under section 38 of the Federal De-
posit Insurance Act (12 U.S.C. 1831o) or any other provi-
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sion of law or regulatory guidance, an insured depository 
institution that would otherwise be required to treat a loan 
as a non-accrual loan may treat such loan as an accrual 
loan, if— 
(1) the loan is current; 
(2) during the previous 6-month period, no 
monthly payment on the loan has been more than 30 
days delinquent; and 
(3) the payments on the loan are being made 
pursuant to the contractual terms of the loan agree-
ment and any refinances and modifications that are 
agreed to by all of the parties. 
(b) DEMONSTRATION OF ABILITY TO PERFORM ON 
A LOAN.—Notwithstanding subsection (a), a modified or 
restructured loan may not be treated as a non-accrual loan 
if the borrower demonstrates the ability to perform on 
such a loan— 
(1) over a period of 6 months; or 
(2) with respect to a loan on a quarterly, semi- 
annual, or longer repayment schedule, over a period 
of 3 consecutive payments. 
(c) NO ADDITIONAL ADVERSE TREATMENT.—With 
respect to a loan held by an insured depository institution 
and treated as an accrual loan by reason of subsection 
(a), an appropriate Federal banking agency may not im-
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pose any additional accounting requirements on such insti-
tution with respect to such loan compared to the require-
ments that would otherwise have been placed on such in-
stitution with respect to such loan if such loan were not 
being treated as an accrual loan by reason of subsection 
(a), if the result of such additional requirement would ad-
versely impact the measurement of capital of the institu-
tion. 
(d) PROHIBITION ON THE RE-CLASSIFICATION OF 
LOANS BASED SOLELY ON COLLATERAL VALUE.—An ap-
propriate Federal banking agency may not require an in-
sured depository institution to treat a loan as a non-ac-
crual loan solely on the basis that the collateral of such 
loan has reduced in value. 
(e) PROVISIONS NOT APPLICABLE
TO PUBLICLY 
TRADED INSTITUTIONS.—This section shall not apply 
with respect to any issuer of a security registered pursuant 
to section 12 of the Securities Exchange Act of 1934 (15 
U.S.C. 78l). 
SEC. 3. STUDY. 
(a) IN GENERAL.—The Financial Stability Oversight 
Council shall conduct a study of how best to prevent con-
tradictory guidance from being issued by appropriate Fed-
eral banking agencies to insured depository institutions 
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with respect to loan classifications and capital require-
ments. 
(b) REPORT.—Not later than the end of the 60-day 
period beginning on the date of the enactment of this Act, 
the Financial Stability Oversight Council shall issue a re-
port to the Congress containing— 
(1) all determinations and conclusions made by 
the Council in carrying out the study required under 
subsection (a); and 
(2) legislative recommendations that the Coun-
cil believes will prevent contradictory guidance from 
being issued by appropriate Federal banking agen-
cies to insured depository institutions with respect to 
loan classifications and capital requirements. 
SEC. 4. DEFINITIONS. 
For purposes of this Act: 
(1) APPROPRIATE
FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’— 
(A) has the meaning given such term 
under section 3 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813); and 
(B) means the National Credit Union Ad-
ministration Board, in the case of a credit 
union. 
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(2) INSURED DEPOSITORY INSTITUTION.—The 
term ‘‘insured depository institution’’ means— 
(A) an insured depository institution, as 
defined under section 3 of the Federal Deposit 
Insurance Act (12 U.S.C. 1813); and 
(B) a credit union. 
SEC. 5. SUNSET. 
Effective after the end of the 2-year period beginning 
on the date of the enactment of this Act, this Act shall 
cease to have any force or effect. 
Æ 
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