I 
112TH CONGRESS 
1ST SESSION H. R. 1723 
To permit certain current loans that would otherwise be treated as non- 
accrual loans as accrual loans for certain purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 4, 2011 
Mr. POSEY (for himself, Mr. PAUL, Mr. WESTMORELAND, Mr. ISSA, Mr. 
WEBSTER, Mr. JONES, Mr. MANZULLO, Mr. MILLER of Florida, Mrs. 
HARTZLER, Mr. PITTS, Mr. FLORES, Mr. GOHMERT, Mr. BARTLETT, Mr. 
PEARCE, Mr. GINGREY of Georgia, Mr. MCCOTTER, Mr. LUETKEMEYER, 
and Mr. THOMPSON of Pennsylvania) 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 for certain 
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 2011’’. 
SEC. 2. TREATMENT OF CERTAIN LOANS. 
(a) IN GENERAL.—For purposes of determining cap-
ital requirements or measuring capital of an insured de-
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pository institution under section 38 of the Federal De-
posit Insurance Act (12 U.S.C. 1831o) or any other provi-
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; 
(3) the loan is an amortizing loan; and 
(4) the payments being made on the loan are 
not being funded through an interest reserve ac-
count. 
(b) EQUALITY
OF
TREATMENT
FOR
MODIFIED 
MORTGAGE LOANS.—Subsection (a) shall apply to modi-
fied mortgage loans, including those loans that meet the 
criteria for troubled debt restructuring, to the same extent 
as non-modified mortgage loans, as long as the modified 
mortgage loans also meet the requirements under para-
graphs (1) through (4) of subsection (a). 
(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. 
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 
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 believe will prevent contradictory guidance from 
being issued by appropriate Federal banking agen-
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cies to insured depository institutions with respect to 
loan classifications and capital requirements. 
SEC. 4. DEFINITIONS. 
For purposes of this Act, the terms ‘‘appropriate 
Federal banking agency’’ and ‘‘insured depository institu-
tion’’ shall have the meaning given those terms, respec-
tively, under section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813). 
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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