I 
116TH CONGRESS 
2D SESSION 
H. R. 7913 
To amend the CARES Act to improve the temporary relief from troubled 
debt restructurings, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 31, 2020 
Mr. LUETKEMEYER introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the CARES Act to improve the temporary relief 
from troubled debt restructurings, 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 ‘‘Financial Institution 
Forbearance Act’’. 
SEC. 2. TEMPORARY RELIEF FROM TROUBLED DEBT 
RESTRUCTURINGS. 
(a) DEFINITIONS.—Section 4013(a) of the CARES 
Act (15 U.S.C. 9051(a)) is amended— 
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(1) in paragraph (1), by striking ‘‘the earlier of 
December 31, 2020, or the date that is 60 days 
after the date on which the national emergency con-
cerning the novel coronavirus disease (COVID–19) 
outbreak declared by the President on March 13, 
2020 under the National Emergencies Act (50 
U.S.C. 1601 et seq.) terminates’’ and inserting 
‘‘March 1, 2021’’; and 
(2) by adding at the end the following: 
‘‘(3) DEPOSITORY INSTITUTION.—The term ‘de-
pository institution’— 
‘‘(A) has the meaning given the term in 
section 3 of the Federal Deposit Insurance Act; 
and 
‘‘(B) means a State or Federal credit 
union, as such terms are defined, respectively, 
under section 101 of the Federal Credit Union 
Act. 
‘‘(4) FINANCIAL INSTITUTION.—The term ‘fi-
nancial institution’ means— 
‘‘(A) a depository institution; 
‘‘(B) a lender that is not a depository in-
stitution; and 
‘‘(C) an insurer.’’. 
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(b) APPLICABILITY.—Section 4013(b)(2)(A) of the 
CARES Act (15 U.S.C. 9051(b)(2)(A)) is amended by 
striking ‘‘December 31, 2019’’ and inserting ‘‘March 1, 
2020’’. 
(c) TREATMENT BY REGULATORS.—Section 4013 of 
the CARES Act (15 U.S.C. 9051) is amended— 
(1) in subsection (c), by striking ‘‘financial in-
stitution’’ each place such term appears and insert-
ing ‘‘depository institution’’; and 
(2) by adding at the end the following: 
‘‘(e) TREATMENT BY REGULATORS.— 
‘‘(1) IN GENERAL.—With respect to any loan 
for which an election has been made by a depository 
institution under subsection (b), the appropriate 
Federal banking agency— 
‘‘(A) at the election of the depository insti-
tution, shall not require the depository institu-
tion to classify such loan as impaired for credit 
risk until April 1, 2022; and 
‘‘(B) at the election of the depository insti-
tution, shall, until April 1, 2022, for the pur-
pose of calculating reserves and capital, and for 
any other accounting purpose, allow a deposi-
tory institution to treat such loan in the same 
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manner as the loan was (or would have been) 
treated on December 31, 2019. 
‘‘(2) LIMITATION.— 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
not apply to a depository institution if the ap-
propriate Federal banking agency determines 
that— 
‘‘(i) the depository institution was not 
well capitalized as of December 31, 2019; 
‘‘(ii) applying paragraph (1) to the 
depository institution would pose a direct 
risk to the Deposit Insurance Fund or the 
National Credit Union Share Insurance 
Fund; or 
‘‘(iii) there is reasonable cause to be-
lieve that the depository institution or an 
institution-affiliated party is violating, or is 
about to violate, a Federal statute or rule. 
‘‘(B) CEASE
AND
DESIST
LETTER
RE-
QUIREMENT.—Before the appropriate Federal 
banking agency may make a determination 
under clause (ii) or (iii) of subparagraph (A), 
the appropriate Federal banking agency shall 
issue a cease and desist order to the depository 
institution and comply with the process re-
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quired under section 8(b) of the Federal De-
posit Insurance Act (12 U.S.C. 1818) with re-
spect to a cease and desist order.’’. 
(d) BALANCE SHEET TREATMENT OF LOANS.—Sec-
tion 4013 of the CARES Act (15 U.S.C. 9051), as amend-
ed by subsection (c), is further amended by adding at the 
end the following: 
‘‘(f) BALANCE SHEET TREATMENT OF LOANS.—For 
purposes of a financial institution’s balance sheet, the fi-
nancial institution shall place all loans for which an elec-
tion has been made under subsection (b) into a separate 
account.’’. 
Æ 
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