I
105TH CONGRESS
1ST SESSION
H. R. 1461
To facilitate recovery from the recent flooding of the Red River and its
tributaries by providing greater flexibility for depository institutions and
their regulators, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 24, 1997
Mr. VENTO (for himself, Mr. PETERSON of Minnesota, Mr. OBERSTAR, Mr.
SABO, Mr. POMEROY, and Mr. MINGE) introduced the following bill;
which was referred to the Committee on Banking and Financial Services
A BILL
To facilitate recovery from the recent flooding of the Red
River and its tributaries by providing greater flexibility
for depository institutions and their regulators, 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 ‘‘Depository Institutions
Disaster Relief Act of 1997’’.
SEC. 2. TRUTH IN LENDING ACT; EXPEDITED FUNDS AVAIL-
ABILITY ACT.
(a) TRUTH IN LENDING ACT.—During the 240-day
period beginning on the date of enactment of this Act, the
Board of Governors of the Federal Reserve System may
make exceptions to the Truth in Lending Act for trans-
actions within an area in which the President, pursuant
to section 401 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act, has determined, on or
after February 28, 1997, that a major disaster exists, or
within an area determined to be eligible for disaster relief
under other Federal law by reason of damage related to
the 1997 flooding of the Red River and its tributaries,
if the Board determines that the exception can reasonably
be expected to alleviate hardships to the public resulting
from such disaster that outweigh possible adverse effects.
(b) EXPEDITED FUNDS AVAILABILITY ACT.—During
the 240-day period beginning on the date of enactment
of this Act, the Board of Governors of the Federal Reserve
System may make exceptions to the Expedited Funds
Availability Act for depository institution offices located
within any area referred to in subsection (a) of this section
if the Board determines that the exception can reasonably
be expected to alleviate hardships to the public resulting
from such disaster that outweigh possible adverse effects.
(c) TIME LIMIT ON EXCEPTIONS.—Any exception
made under this section shall expire not later than Sep-
tember 1, 1998.
(d) PUBLICATION REQUIRED.—The Board of Gov-
ernors of the Federal Reserve System shall publish in the
Federal Register a statement that—
(1) describes any exception made under this
section; and
(2) explains how the exception can reasonably
be expected to produce benefits to the public that
outweigh possible adverse effects.
SEC. 3. DEPOSIT OF INSURANCE PROCEEDS.
(a) IN GENERAL.—The appropriate Federal banking
agency may, by order, permit an insured depository insti-
tution to subtract from the institution’s total assets, in
calculating compliance with the leverage limit prescribed
under section 38 of the Federal Deposit Insurance Act,
an amount not exceeding the qualifying amount attrib-
utable to insurance proceeds, if the agency determines
that—
(1) the institution—
(A) had its principal place of business
within an area in which the President, pursuant
to section 401 of the Robert T. Stafford Disas-
ter Relief and Emergency Assistance Act, has
determined, on or after February 28, 1997,
that a major disaster exists, or within an area
determined to be eligible for disaster relief
under other Federal law by reason of damage
related to the 1997 flooding of the Red River
and its tributaries, on the day before the date
of any such determination;
(B) derives more than 60 percent of its
total deposits from persons who normally reside
within, or whose principal place of business is
normally within, areas of intense devastation
caused by the major disaster;
(C) was adequately capitalized (as defined
in section 38 of the Federal Deposit Insurance
Act) before the major disaster; and
(D) has an acceptable plan for managing
the increase in its total assets and total depos-
its; and
(2) the subtraction is consistent with the pur-
pose of section 38 of the Federal Deposit Insurance
Act.
(b) TIME LIMIT ON EXCEPTIONS.—Any exception
made under this section shall expire not later than Feb-
ruary 28, 1999.
(c) DEFINITIONS.—For purposes of this section:
(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 DEPOSITORY INSTITUTION.—The
term ‘‘insured depository institution’’ has the same
meaning as in section 3 of the Federal Deposit In-
surance Act.
(3) LEVERAGE
LIMIT.—The term ‘‘leverage
limit’’ has the same meaning as in section 38 of the
Federal Deposit Insurance Act.
(4) QUALIFYING
AMOUNT
ATTRIBUTABLE
TO
INSURANCE
PROCEEDS.—The 
term 
‘‘qualifying
amount attributable to insurance proceeds’’ means
the amount (if any) by which the institution’s total
assets exceed the institution’s average total assets
during the calendar quarter ending before the date
of any determination referred to in subsection
(a)(1)(A), because of the deposit of insurance pay-
ments or governmental assistance made with respect
to damage caused by, or other costs resulting from,
the major disaster.
SEC. 4. BANKING AGENCY PUBLICATION REQUIREMENTS.
(a) IN GENERAL.—A qualifying regulatory agency
may take any of the following actions with respect to de-
pository institutions or other regulated entities whose
principal place of business is within, or with respect to
transactions or activities within, an area in which the
President, pursuant to section 401 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act, has
determined, on or after February 28, 1997, that a major
disaster exists, or within an area determined to be eligible
for disaster relief under other Federal law by reason of
damage related to the 1997 flooding of the Red River and
its tributaries, if the agency determines that the action
would facilitate recovery from the major disaster:
(1) PROCEDURE.—Exercising the agency’s au-
thority under provisions of law other than this sec-
tion without complying with—
(A) any requirement of section 553 of title
5, United States Code; or
(B) any provision of law that requires no-
tice or opportunity for hearing or sets maxi-
mum or minimum time limits with respect to
agency action.
(2) PUBLICATION REQUIREMENTS.—Making ex-
ceptions, with respect to institutions or other entities
for which the agency is the primary Federal regu-
lator, to—
(A) any publication requirement with re-
spect to establishing branches or other deposit-
taking facilities; or
(B) any similar publication requirement.
(b) PUBLICATION REQUIRED.—A qualifying regu-
latory agency shall publish in the Federal Register a state-
ment that—
(1) describes any action taken under this sec-
tion; and
(2) explains the need for the action.
(c) QUALIFYING REGULATORY AGENCY DEFINED.—
For purposes of this section, the term ‘‘qualifying regu-
latory agency’’ means—
(1) the Board of Governors of the Federal Re-
serve System;
(2) the Comptroller of the Currency;
(3) the Director of the Office of Thrift Super-
vision;
(4) the Federal Deposit Insurance Corporation;
(5) the Financial Institutions Examination
Council;
(6) the National Credit Union Administration;
and
(7) with respect to chapter 53 of title 31, Unit-
ed States Code, the Secretary of the Treasury.
(d) EXPIRATION.—Any exception made under this
section shall expire not later than February 28, 1998.
SEC. 5. SENSE OF THE CONGRESS.
It is the sense of the Congress that the Board of Gov-
ernors of the Federal Reserve System, the Comptroller of
the Currency, the Director of the Office of Thrift Super-
vision, the Federal Deposit Insurance Corporation, and
the National Credit Union Administration should encour-
age depository institutions to meet the financial services
needs of their communities and customers located in areas
affected by the 1997 flooding of the Red River and its
tributaries.
SEC. 6. OTHER AUTHORITY NOT AFFECTED.
No provision of this Act shall be construed as limiting
the authority of any department or agency under any
other provision of law.
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