I
103D CONGRESS
2D SESSION
H. R. 3799
To facilitate recovery from the recent earthquakes in California by providing
greater flexibility for depository institutions and their regulators, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 3, 1994
Mr. GRAMS (for himself, Mr. DOOLEY, Mr. MCCANDLESS, Mr. HUFFINGTON,
Mr. COX, Mr. CALVERT, Mr. MCKEON, Mr. GALLEGLY, and Mr. MCCOL-
LUM) introduced the following bill; which was referred jointly to the Com-
mittees on Banking, Finance and Urban Affairs and the Judiciary
A BILL
To facilitate recovery from the recent earthquakes in Califor-
nia by providing greater flexibility for depository institu-
tions 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 1994’’.
SEC. 2. TRUTH 
IN 
LENDING 
ACT; 
EXPEDITED 
FUNDS
AVAILABILITY ACT.
(a) TRUTH IN LENDING ACT.—During the 180-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 that a
major disaster exists, or within an area determined to be
eligible for disaster relief under other Federal law, by rea-
son of damage related to the 1994 earthquakes in Califor-
nia, if the Board determines that the exception can rea-
sonably be expected to alleviate hardships to the public
resulting from such disaster that outweigh possible ad-
verse effects.
(b) EXPEDITED FUNDS AVAILABILITY ACT.—During
the 180-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 the disaster referred to in such subsection that out-
weigh possible adverse effects.
(c) TIME LIMIT ON EXCEPTIONS.—Any exception
made under this section shall expire not later than the
earlier of—
(1) 1 year after the date of enactment of this
Act; or
(2) 1 year after the date of any determination
referred to in subsection (a).
(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, during the 18-month period beginning on the date
of enactment of this Act, 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 attributable 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 that a major disaster exists, or
within an area determined to be eligible for dis-
aster relief under other Federal law by reason
of damage related to the 1994 earthquakes in
California, 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) DEFINITIONS.—For purposes of this section, 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 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.—During the 180-day period begin-
ning on the date of enactment of this Act, a qualifying
regulatory agency may take any of the following actions
with respect to depository 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. Stafford Disaster Relief and Emergency Assistance
Act, has determined 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 1994
earthquakes in California, if the agency determines that
the action would facilitate recovery from the major disas-
ter:
(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,
United States Code, the Secretary of the Treasury.
SEC. 5. STUDY; REPORT TO THE CONGRESS.
(a) STUDY.—The Comptroller General of the United
States shall conduct a study that—
(1) examines how the agencies and entities
granted authority by the Depository Institutions
Disaster Relief Act of 1993, and by this Act have
exercised such authority;
(2) evaluates the utility of such Acts in facili-
tating recovery from disasters consistent with the
safety and soundness of depository institutions; and
(3) contains recommendations with respect to
whether the authority granted by this Act should be
made permanent.
(b) REPORT TO THE CONGRESS.—Not later than 18
months after the date of the enactment of this Act, the
Comptroller General of the United States shall submit to
the Congress a report on the results of the study required
by subsection (a).
SEC. 6. 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