[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1723 Introduced in House (IH)]

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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Common Sense Economic Recovery Act 
of 2011''.

SEC. 2. TREATMENT OF CERTAIN LOANS.

    (a) In General.--For purposes of determining capital requirements 
or measuring capital of an insured depository institution under section 
38 of the Federal Deposit Insurance Act (12 U.S.C. 1831o) or any other 
provision 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 account.
    (b) Equality of Treatment for Modified Mortgage Loans.--Subsection 
(a) shall apply to modified 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 paragraphs (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 
impose any additional accounting requirements on such institution with 
respect to such loan compared to the requirements that would otherwise 
have been placed on such institution 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 adversely 
impact the measurement of capital of the institution.

SEC. 3. STUDY.

    (a) In General.--The Financial Stability Oversight Council shall 
conduct a study of how best to prevent contradictory guidance from 
being issued by appropriate Federal banking agencies to insured 
depository institutions with respect to loan classifications and 
capital requirements.
    (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 report 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 Council believe 
        will prevent contradictory guidance from being issued by 
        appropriate Federal banking agencies 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 institution'' shall have the meaning 
given those terms, respectively, 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.
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