[Congressional Record Volume 140, Number 126 (Monday, September 12, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 12, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
        AVAILABILITY OF CREDIT FOR PEOPLE AFFECTED BY DISASTERS

  The text of the bill (S. 2430) to facilitate recovery from the recent 
flooding in Georgia, Alabama, and Florida resulting from Tropical Storm 
Alberto by providing greater flexibility for depository institutions 
and their regulators, and for other purposes, as passed by the Senate 
on August 25, 1994, is as follows:

                                S. 2430

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. DEPOSITORY INSTITUTIONS DISASTER RELIEF.

       (a) Truth in Lending Act; Expedited Funds Availability 
     Act.--
       (1) Truth in lending act.--During the 240-day period 
     beginning on the date of enactment of this Act, the Board of 
     Governors of the Federal Reserve System may make exceptions 
     to the Truth in Lending Act for transactions within an area 
     in which the President, pursuant to section 401 of the Robert 
     T. Stafford Disaster Relief and Emergency Assistance Act, has 
     determined, on or after July 1, 1994, that a major disaster 
     exists, or within an area determined to be eligible for 
     disaster relief under other Federal law by reason of damage 
     related to the 1994 flooding in Georgia, Alabama, and Florida 
     resulting from Tropical Storm Alberto, if the Board 
     determines that the exception can reasonably be expected to 
     alleviate hardships to the public resulting from such 
     disaster that outweigh possible adverse effects.
       (2) Expedited funds availability act.--During the 240-day 
     period beginning on the date of enactment of this Act, the 
     Board of Governors of the Federal Reserve System may make 
     exceptions to the Expedited Funds Availability Act for 
     depository institution offices located within any area 
     referred to in paragraph (1) of this section if the Board 
     determines that the exception can reasonably be expected to 
     alleviate hardships to the public resulting from such 
     disaster that outweigh possible adverse effects.
       (3) Time limit on exceptions.--Any exception made under 
     this subsection shall expire not later than January 1, 1996.
       (4) 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) Deposit of Insurance Proceeds.--
       (1) In general.--The appropriate Federal banking agency 
     may, by order, permit an insured depository institution 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 
     exceeding the qualifying amount attributable to insurance 
     proceeds, if the agency determines that--
       (A) the institution--
       (i) had its principal place of business within an area in 
     which the President, pursuant to section 401 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act, has 
     determined, on or after July 1, 1994, that a major disaster 
     exists, or within an area determined to be eligible for 
     disaster relief under other Federal law by reason of damage 
     related to the 1994 flooding in Georgia, Alabama, and Florida 
     resulting from Tropical Storm Alberto, on the day before the 
     date of any such 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;
       (iii) was adequately capitalized (as defined in section 38 
     of the Federal Deposit Insurance Act) before the major 
     disaster; 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) Time limit on exceptions.--Any exception made under 
     this subsection shall expire not later than January 1, 1996.
       (3) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       (A) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency'' has the same meaning 
     as in section 3 of the Federal Deposit Insurance Act.
       (B) Insured depository institution.--The term ``insured 
     depository institution'' has the same meaning as in section 3 
     of the Federal Deposit Insurance Act.
       (C) Leverage limit.--The term ``leverage limit'' has the 
     same meaning as in section 38 of the Federal Deposit 
     Insurance Act.
       (D) Qualifying amount attributable to insurance proceeds.--
     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 any determination referred to in paragraph (1)(A)(i), 
     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.
       (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, an area in which the President, 
     pursuant to section 401 of the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act, has determined, on or 
     after July 1, 1994, that a major disaster exists, or within 
     an area determined to be eligible for disaster relief under 
     other Federal law by reason of damage related to the 1994 
     flooding in Georgia, Alabama, and Florida resulting from 
     Tropical Storm Alberto, if the agency determines that the 
     action would facilitate recovery from the major disaster:
       (A) Procedure.--Exercising the agency's authority under 
     provisions of law other than this subsection without 
     complying with--
       (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.--Making 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 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 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.--Any exception made under this subsection 
     shall expire not later than January 1, 1996.
       (d) 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 Currency, the Director of the Office 
     of Thrift Supervision, the Federal Deposit Insurance 
     Corporation, and the National Credit Union Administration 
     should encourage depository institutions to meet the 
     financial services needs of their communities and customers 
     located in areas affected by the 1994 flooding in Georgia, 
     Alabama, and Florida resulting from Tropical Storm Alberto.
       (e) Other Authority Not Affected.--Nothing in this section 
     limits the authority of any department or agency under any 
     other provision of law.

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