[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3109 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 3109

To permit certain current loans that would otherwise be treated as non-
        accrual loans as accrual loans, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 16, 2015

  Mr. Posey 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, 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 ``Common Sense Economic Recovery Act 
of 2015''.

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; and
            (3) the payments on the loan are being made pursuant to the 
        contractual terms of the loan agreement and any refinances and 
        modifications that are agreed to by all of the parties.
    (b) Demonstration of Ability To Perform on a Loan.--Notwithstanding 
subsection (a), a modified or restructured loan may not be treated as a 
non-accrual loan if the borrower demonstrates the ability to perform on 
such a loan--
            (1) over a period of 6 months; or
            (2) with respect to a loan on a quarterly, semi-annual, or 
        longer repayment schedule, over a period of 3 consecutive 
        payments.
    (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.
    (d) Prohibition on the Re-Classification of Loans Based Solely on 
Collateral Value.--An appropriate Federal banking agency may not 
require an insured depository institution to treat a loan as a non-
accrual loan solely on the basis that the collateral of such loan has 
reduced in value.
    (e) Provisions Not Applicable to Publicly Traded Institutions.--
This section shall not apply with respect to any issuer of a security 
registered pursuant to section 12 of the Securities Exchange Act of 
1934 (15 U.S.C. 78l).

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 believes 
        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:
            (1) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency''--
                    (A) has the meaning given such term under section 3 
                of the Federal Deposit Insurance Act (12 U.S.C. 1813); 
                and
                    (B) means the National Credit Union Administration 
                Board, in the case of a credit union.
            (2) Insured depository institution.--The term ``insured 
        depository institution'' means--
                    (A) an insured depository institution, as defined 
                under section 3 of the Federal Deposit Insurance Act 
                (12 U.S.C. 1813); and
                    (B) a credit union.

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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