Depository Institutions Disaster Relief Act of 1992
PL 102-485 (H.R.6050), enacted 10/23/1992

PUBLIC LAW 102-485—OCT. 23,1992 
106 STAT. 2771 
Public Law 102-485 
102d Congress 
An Act 
To facilitate recovery 
from 
recent disasters by providing greater 
flexibility 
for deposi-
tory institutions and their regulators, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of 
America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the 'depository Institutions Disaster 
ReUefActofl992''. 
SEC. 2. APPRAISAL REQUIREMENTS. 
Title XI of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) is amended 
by adding at the end the following new section: 
'nSEC. 1123. EMERGENCY EXCEPTIONS FOR DISASTER AREAS. 
"(a) IN GENERAL.—^Each Federal financial institutions regu-
latory agency may, by regulation or order, make exceptions to 
this title, and to standards prescribed pursuant to this title, for 
transactions involving institutions for which the agency is the pri-
mary Federal regulator with respect to real property located within 
a disaster area if the agency— 
"(1) makes the exception not later than 30 months after 
the date on which the President determines, pursuant to section 
401 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, that a mtgor disaster exists in the area; and 
"(2) determines that the exception— 
"(A) would facilitate recovery from the mcyor disaster; 
and 
''(B) is consistent with safety and soundness, 
"(b) 3-YEAR LIMIT ON EXCEPTIONS.—Any exception made under 
this section shall expire not later than 3 years after the date 
of the determination referred to in subsection (aXD-
"(c) PuBUCATiON REQUIRED.—^Any Federal financial institutions 
regulatory agency shall publish in the Federal Register a statement 
that^ 
"(1) describes any exception made under this section; and 
"(2) explains how the exception— 
"(A) would facilitate recovery from the msgor disaster; 
and 
"(B) is consistent with safety and soundness, 
"(d) DISASTER AREA DEFINED.—^For purposes of this section, 
the term 'disaster area' means 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 disas-
ter exists.". 
Oct. 23,1992 
[H.R. 6050] 
Depository 
Institutions 
Disaster 
Relief Act 
of 1992. 
12 use 1811 
note. 
12 use 3352. 
Federal 
Register, 
publication. 
106 STAT. 2772 
PUBLIC LAW 102-485—OCT. 23, 1992 
12 use 4008 
note. 
Federal 
Register, 
publication. 
12 use 1831o 
note. 
SEC. 3. TRUTH IN LENDING ACT; EXPEDITED FUNDS AVAILABILITY 
ACT. 
(a) TRUTH IN LENDING ACT.—During the 180-day period begin-
ning on the date of enactment of this Act, the Board of Grovemors 
of the Federal Reserve System may make exceptions to the Truth 
in Lending Act for transactions within an area in which the Presi-
dent, pursuant to section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act, has determined that a msgor 
disaster exists, if the Board determines that the exception can 
reasonably be expected to produce benefits to the public that out-
weigh possible adverse effects. 
(b) EXPEDITED FUNDS AVAILABILITY ACT.—^During the 180-day 
period beginning on the date of enactment of this Act, the Boara 
of GrOvemors of the Federal Reserve System may make exceptions 
to the Expedited Fimds Availability Act for depository institution 
offices located within an area referred to in subsection (a) of this 
section if the Board determines that the exception can reasonably 
be expected to produce benefits to the public that outweigh 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 the Presidential determination 
referred to in subsection (a). 
(d) PUBLICATION REQUIRED.—The Board of Governors 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. 4. DEPOSIT OF INSURANCE PROCEEDS. 
(a) IN GENERAL.—^The appropriate Federal banking agency may, 
by order, permit an insured depository institution, during tne 18-
month period beginning on the date of enactment of this Act, 
to subtract fh>m the institution's total assets, in calculating compli-
ance 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 principed place of business within an area 
in which the President, pursuant to section 401 of the 
Robert T. Stafford Disaster Relief and Emergency Assist-
ance Act, has determined that a mcg'or disaster exists, 
on the day before the date of that determination; 
(B) derives more than 60 percent of its total deposits 
from persons who normally reside within, or whose prin-
cipal place of business is normally within, areas of intense 
devastation caused by the msgor disaster (such as that 
portion of Dade County, Florida, south of Kendall Drive 
and east of Everglades National Park, as damaged by 
Hurricane Andrew); 
(C) was adequately capitalized (as defined in section 
38 of the Federal Deposit Insurance Act) before the mtgor 
disaster; and 
PUBLIC LAW 102-485—OCT. 23, 1992 
106 STAT. 2773 
(D) has an acceptable plan for managing the increase 
in its total assets ana total deposits; and 
(2) the subtraction is consistent with the purpose of section 
38 of 
the Federal Deposit Insurance Act. 
(b) DEFINITIONS.—^For purposes of this section: 
(1) APPROPRIATE FEDERAL BANKING AGENCY.—The term 
"appropriate Federal banking agency" has the same meaning 
as in section 3 of the Federal Deposit Insiurance Act. 
(2) INSURED DEPOSITORY INSTITUTION.—The term "insured 
depository institution" has the same meaning as in section 
3 of tiie Federal Deposit Insurance 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 PRO-
CEEDS.—^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 the Presidential 
determination referred to in subsection (aXlXA), because of 
the deposit of insurance payments or governmental assistance 
made with respect to damage caused by, or other costs resulting 
from, the migor disaster. 
SEC. 6. BANKING AGENCY PUBUCATION BEQUIREMENTS. 
12 USC 1828 
(a) IN GENERAL.—^During the 180-day period beginning on the 
date of enactment of this Act, a qualifying regulatory agenpy may 
take any of the following actions with respect to depository institu-
tions or other regulated entities whose principal place of business 
is within, or wim resi)ect 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 msgor disaster exists, if the agency determines 
that the action would facilitate recovery from the major disaster: 
(1) PROCEDURE.—^Exercising the agency's authority under 
provisions of law other than this section without complying 
with— 
(A) any requirement of section 553 of title 5, United 
States Code; or 
(B) any provision of law that requires notice or oppor-
tunity for hearing or sets maximum or minimum time 
limits with respect to agency action. 
(2) PuBUCATiON REQUIREMENTS.—Making exceptions, with 
respect to institutions or other entities for which the agency 
is the primary Federal regulator, to— 
(A) any publication requirement with respect to 
establishing branches or other deposit-taking facilities; or 
(B) any similar publication re<]uirement. 
(b) PUBLICATION REQUIRED.—^A qualifying regulatory agency Federal 
shall publish in the Federal Register a statement that— 
S^SSon 
(1) describes any action taken under Uiis section; and 
^ 
(2) explains the need for the action. 
(c) QUALIFYING REGULATORY AGENCY DEFINED.—For purposes 
of this section, the term "qualifying regulatory agency" means— 
(1) the Board of Governors of the Federal Reserve System; 
(2) the Comptroller of the Currency; 
(3) the Director of t^e Office of 
Thnft Supervision; 
106 STAT. 2774 
PUBLIC LAW 102-485—OCT. 23, 1992 
(4) the Federal Deposit Insurance Corporation; 
(5) the Financial Institutions Examination Coundl; 
(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. 6. COMMUNTIY DEVELOPMENT AUTHORITir OF RANKS. 
(a) NATIONAL BANKS.—Section 5136 of the Revised Statutes 
(12 U.S.C. 24) is amended by adding at the end the following 
new paragraph: 
"Eleventh. To make investments designed primarily to pro-
mote the public welfare, including the welfare of low- and 
moderate-income commimities or families (such as by providing 
housing, services, or jobs). A national banking association may 
make such investments directly or by purchasing interests in 
an entity primarily engaged in making such investments. An 
association shall not make any such investment if the invest-
ment would expose the association to unlimited liability. The 
Comptroller of the Currency shall limit an association's invest-
ments in any 1 project and an association's aggregate in-
vestments under this paragraph. An association^ aggregate 
investments under this paragraph shall not exceed an amount 
equal to the sum of 5 percent of the association's capital stock 
actually paid in and unimpaired and 5 percent of the associa-
tion's unimpaired surplus fund, unless the Comptroller deter-
mines by order that the higher amount will pose no significant 
risk to the affected deposit insurance fund, and the association 
is adequately capitalized. In no case shall an association's 
aggregate investments under this paragraph exceed an amount 
equal to the sum of 10 percent of uie association's capital 
stock actually paid in and unimpaired and 10 percent of the 
association's unimpaired surplus fund.". 
(b) STATE MEMBER BANKS.—Section 9 of the Federal Reserve 
Act (12 U.S.C. 321-338) is amended by adding at the end the 
following new paragraph: 
12 use 338a. 
''State member banks may make investments designed pri-
marily to promote the public welfare, including the welfare 
of low- and moderate-income communities or families (such 
as by providing housing, services, or jobs), to the extent permis-
sible under State law, and subject to such restrictions and 
requirements as the Board of Grovemors of the Federal Reserve 
System may prescribe by regulation or order. A bank shall 
not make any such investment if the investment would expose 
the bank to imlimited liability. The Board shall limit a bank's 
investments in any 1 project and bank's aggregate investments 
under this paragraph. A bank's aggregate investments under 
this paragraph shall not exceed an amount equal to the sum 
of 5 percent of the bank's capital stock actually paid in and 
imimpaired and 5 percent of the bank's imimpaired surplus 
fund, unless the Board determines by order that the higher 
amount will pose no significant risk to the affected deposit 
insurance fund, and the bank is adequately capitelized. In 
no case shall a bank's aggregate investments under this para-
graph exceed an amount equal to the sum of 10 percent of 
the bank's capital stock actually paid in and unimpaired and 
10 percent of the bank's unimpaired surplus fund.". 
PUBLIC LAW 102-485—OCT. 23, 1992 
106 STAT. 2775 
SEC. 7. SENSE OF THE CONGRESS. 
It is the sense of the Congress that the Board of Governors 
of the Federal Reserve System, the Comptroller of the Cxirrency, 
the Director of the Office of Thrift Supervision, the Federal Deposit 
Insurance Corporation, and the National Credit Union Administra-
tion should encourage depository institutions in areas affected by 
such major disasters as Hurricane Andrew, Hurricane InUci, ana 
the Los Angeles civil unrest to meet the financial services needs 
of their communities. 
SEC. 8. OTHER AUTHORITY NOT AFFECTED. 
12 USC 1811 
Nothing in this Act limits the authority of any department 
or agency imder any other provision of law. 
Approved October 23, 1992. 
LEGISLATIVE HISTORY—H.R. 6050: 
CONGRESSIONAL RECORD. Vol. 138 (1992): 
Oct. 3, considered and passed House. 
Oct. 8, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 28 (1992): 
Oct. 23, Presidential statement.