[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1273 Engrossed in Senate (ES)]

103d CONGRESS

  1st Session

                                S. 1273

_______________________________________________________________________

                                 AN ACT

To enhance the availability of credit in disaster areas by reducing the 
 regulatory burden imposed upon insured depository institutions to the 
 extent such action is consistent with the safety and soundness of the 
                             institutions.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
103d CONGRESS
  1st Session
                                S. 1273

_______________________________________________________________________

                                 AN ACT


 
To enhance the availability of credit in disaster areas by reducing the 
 regulatory burden imposed upon insured depository institutions to the 
 extent such action is consistent with the safety and soundness of the 
                             institutions.

    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 ``Disaster Credit Relief Act of 
1993''.

SEC. 2. DISASTER CREDIT RELIEF.

    (a) Regulatory Exception Authority.--
            (1) Exception authority.--In any area in which the 
        President has determined, on or after April 1, 1993, that a 
        major disaster exists pursuant to section 401 of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act or within 
        an area determined to be eligible for disaster relief under 
        other Federal law by reason of damage related to the 1993 
        flooding of the Mississippi River and its tributaries, the 
        Board of Governors of the Federal Reserve System may make 
        exceptions to--
                    (A) the requirements of the Truth in Lending Act, 
                for credit transactions made within such area; or
                    (B) the requirements of the Expedited Funds 
                Availability Act for offices of depository institutions 
                (as defined in section 602 of that Act) located within 
                such area;
        if the Board determines that the exception can reasonably be 
        expected to produce benefits to the public that outweigh 
        possible adverse effects of the exception.
            (2) Expiration.--Any exception granted under paragraph (1) 
        shall expire not later than October 1, 1994.
            (3) Publication required.--The Board of Governors of the 
        Federal Reserve System shall publish in the Federal Register a 
        statement that--
                    (A) describes any exception made under this 
                subsection; and
                    (B) explains how the exception can reasonably be 
                expected to produce benefits to the public that 
                outweigh possible adverse effects.
    (b) Leverage Limit Compliance.--
            (1) Exception authority.--The appropriate Federal banking 
        agency may, by order, permit an insured depository institution 
        located in any area in which the President has determined, on 
        or after April 1, 1993, that a major disaster exists pursuant 
        to section 401 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act or within an area determined to be 
        eligible for disaster relief under other Federal law by reason 
        of damage related to the 1993 flooding of the Mississippi River 
        and its tributaries, 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 to exceed the qualifying amount attributable 
        to insurance proceeds, if the agency determines that--
                    (A) the institution--
                            (i) had its principal place of business 
                        within the major disaster area on the day 
                        before the date of the President's 
                        determination;
                            (ii) 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 (such as the 
                        flooded areas of the Mississippi, Missouri, 
                        Kansas, Illinois, and Des Moines rivers, and 
                        the tributaries of such rivers);
                            (iii) was adequately capitalized (as 
                        defined in section 38 of the Federal Deposit 
                        Insurance Act) before the President's 
                        determination; and
                            (iv) has an acceptable plan for managing 
                        the increase in its total assets and total 
                        deposits; and
                    (B) the subtraction is consistent with the purpose 
                of section 38 of the Federal Deposit Insurance Act.
            (2) Definitions.--For purposes of this subsection--
                    (A) the term ``appropriate Federal banking agency'' 
                has the same meaning as in section 3 of the Federal 
                Deposit Insurance Act;
                    (B) the term ``insured depository institution'' has 
                the same meaning as in section 3 of the Federal Deposit 
                Insurance Act;
                    (C) the term ``leverage limit'' has the same 
                meaning as in section 38 of the Federal Deposit 
                Insurance Act; and
                    (D) the term ``qualifying amount attributable to 
                insurance proceeds'' means the amount by which the 
                insured depository 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 paragraph 
                (1), because of the deposit of insurance payments or 
                governmental assistance made with respect to damage 
                caused by, or other costs resulting from, the major 
                disaster.
            (3) Expiration.--Any exception granted under this 
        subsection shall expire not later than April 1, 1995.
    (c) Banking Agency Publication Requirements.--
            (1) In general.--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, any area in which the President has 
        determined, on or after April 1, 1993, that a major disaster 
        exists pursuant to section 401 of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act or any area 
        determined to be eligible for disaster relief under other 
        Federal law by reason of damage related to the 1993 flooding of 
        the Mississippi River and its tributaries, if the agency 
        determines that the action would facilitate recovery from the 
        major disaster:
                    (A) Procedure.--The agency may exercise its 
                authority under provisions of law other than this 
                subsection without regard to--
                            (i) any requirement of section 553 of title 
                        5, United States Code; or
                            (ii) any provision of law that requires 
                        notice or opportunity for hearing or sets 
                        maximum or minimum time limits with respect to 
                        agency action.
                    (B) Publication requirements.--The agency may make 
                exceptions, with respect to institutions or other 
                entities for which the agency is the primary Federal 
                regulator, to--
                            (i) any publication requirement with 
                        respect to establishing branches or other 
                        deposit-taking facilities; or
                            (ii) any other similar publication 
                        requirement.
            (2) Publication required.--A qualifying regulatory agency 
        shall publish in the Federal Register a statement that--
                    (A) describes any action taken under this 
                subsection; and
                    (B) explains the need for the action.
            (3) Qualifying regulatory agency defined.--For purposes of 
        this subsection, the term ``qualifying regulatory agency'' 
        means--
                    (A) the Board of Governors of the Federal Reserve 
                System;
                    (B) the Comptroller of the Currency;
                    (C) the Director of the Office of Thrift 
                Supervision;
                    (D) the Federal Deposit Insurance Corporation;
                    (E) the Federal Financial Institutions Examination 
                Council;
                    (F) the National Credit Union Administration; and
                    (G) with respect to chapter 53 of title 31, United 
                States Code, the Secretary of the Treasury.
            (4) Expiration.--The authority of a qualifying regulatory 
        agency to take any action in accordance with this subsection 
        shall expire not later than April 1, 1994.

SEC. 3. STUDY AND REPORT REQUIRED.

    (a) Study.--The Secretary of the Treasury, after consultation with 
the appropriate Federal banking agencies (as defined in section 3 of 
the Federal Deposit Insurance Act), shall conduct a study to assess the 
impact of Federal banking laws and regulations on the provision of 
credit and banking services in major disaster areas, as declared by the 
President. The study shall--
            (1) examine how the agencies and entities granted authority 
        by the Depository Institutions Disaster Relief Act of 1992 and 
        by this Act have exercised such authority;
            (2) evaluate the utility of such Acts in facilitating 
        recovery from disasters consistent with the safety and 
        soundness of depository institutions; and
            (3) contain recommendations with respect to whether the 
        authority granted by this Act should be made permanent.
    (b) Report to the Congress.--Not later than 1 year after the date 
of enactment of this Act, the Secretary of the Treasury shall submit a 
report to the Congress containing the results of the study conducted 
under subsection (a), together with any recommendations for legislative 
or administrative actions that should be taken.

SEC. 4. SENSE OF THE CONGRESS REGARDING THE FLOODS OF 1993.

    It is the sense of the Congress that the Board of Governors of the 
Federal Reserve System, the Comptroller of the Currency, the Director 
of the Office of Thrift Supervision, the Federal Deposit Insurance 
Corporation, and the National Credit Union Administration should 
encourage depository institutions in areas affected by such major 
disasters as the flooding of the Mississippi, Missouri, Kansas, 
Illinois, and Des Moines rivers, and the tributaries of such rivers, to 
meet the financial services needs of their communities.

            Passed the Senate July 30 (legislative day, June 30), 1993.

            Attest:






                                                             Secretary.