[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4146 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 4146
To facilitate recovery from the effects of Hurricane Rita and Hurricane
Wilma by providing greater flexibility for, and temporary waivers of
certain requirements and fees imposed on, depository institutions,
credit unions, and Federal regulatory agencies, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 26, 2005
Mr. Baker (for himself and Ms. Wasserman Schultz) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To facilitate recovery from the effects of Hurricane Rita and Hurricane
Wilma by providing greater flexibility for, and temporary waivers of
certain requirements and fees imposed on, depository institutions,
credit unions, and Federal regulatory agencies, 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 ``Hurricanes Rita and Wilma Financial
Services Relief Act of 2005''.
SEC. 2. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Appropriate federal banking agency.--The term
``appropriate Federal banking agency'' has the same meaning as
in section 3 of the Federal Deposit Insurance Act.
(2) Insured credit union.--The term ``insured credit
union'' has the same meaning as in section 101 of the Federal
Credit Union Act.
(3) Insured depository institution.--The term ``insured
depository institution'' has the same meaning as in section 3
of the Federal Deposit Insurance Act.
(4) Qualified disaster area.--The term ``qualified disaster
area'' means--
(A) any area within Louisiana or Texas in which the
President, pursuant to section 401 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act,
has determined, on or after September 24, 2005, that a
major disaster exists due to Hurricane Rita; and
(B) any area within Florida in which the President,
pursuant to section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act, has
determined, on or after October 22, 2005, that a major
disaster exists due to Hurricane Wilma.
SEC. 3. SENSE OF THE CONGRESS ON CASHING OF GOVERNMENT CHECKS.
It is the sense of the Congress that--
(1) it is vital that insured depository institutions and
insured credit unions continue to provide financial services to
consumers displaced or otherwise affected by Hurricane Rita or
Hurricane Wilma, which includes the cashing of Federal
government assistance and benefit checks;
(2) the Secretary of the Treasury and the Federal financial
regulators should seek to educate insured depository
institutions and insured credit unions on the proper
application of the guidance issued by the Secretary on cashing
of Federal government assistance and benefit checks and
published in the Federal Register while such guidance is in
effect; and
(3) the Federal financial regulators should continue to
work with the insured depository institutions and insured
credit unions operating under extraordinary circumstances to
facilitate the cashing of Federal government assistance and
benefit checks.
SEC. 4. WAIVER OF FEDERAL RESERVE BOARD FEES FOR CERTAIN SERVICES.
Notwithstanding section 11A of the Federal Reserve Act or any other
provision of law, during the effective period of this section, a
Federal reserve bank shall waive or rebate any transaction fee for wire
transfer services that otherwise would be imposed on any insured
depository institution or insured credit union that--
(1) as of September 24, 2005, was headquartered in a
qualified disaster area described in section 2(4)(A); or
(2) as of October 22, 2005, was headquartered in a
qualified disaster area described in section 2(4)(B).
SEC. 5. FLEXIBILITY IN CAPITAL AND NET WORTH STANDARDS FOR AFFECTED
INSTITUTIONS.
(a) In General.--Notwithstanding section 38 of the Federal Deposit
Insurance Act, section 216 of the Federal Credit Union Act, or any
other provision of Federal law, during the 18-month period beginning on
the date of enactment of this Act, the appropriate Federal banking
agency and the National Credit Union Administration may forbear from
taking any action required under any such section or provision, on a
case-by-case basis, with respect to any undercapitalized insured
depository institution or undercapitalized insured credit union that is
not significantly or critically undercapitalized, if such agency or
Administration determines that--
(1) the insured depository institution or insured credit
union derives more than 50 percent of its total deposits from
persons who normally reside within, or whose principal place of
business is normally within, a qualified disaster area;
(2) the insured depository institution or insured credit
union was at least adequately capitalized as of--
(A) September 24, 2005, if the qualified disaster
area referred to in paragraph (1) with respect to such
depository institution or credit union is the qualified
disaster area described in section 2(4)(A); or
(B) October 22, 2005, if the qualified disaster
area referred to in paragraph (1) with respect to such
depository institution or credit union is the qualified
disaster area described in section 2(4)(B).
(3) the reduction in the capital or net worth category of
the insured depository institution or insured credit union is
directly attributable to the impact of Hurricane Rita or
Hurricane Wilma, as applicable; and
(4) forbearance from any such action--
(A) would facilitate the recovery of the insured
depository institution or insured credit union from the
disaster in accordance with a recovery plan or a
capital or net worth restoration plan established by
such depository institution or credit union; and
(B) would be consistent with safe and sound
practices.
(b) Capital and Net Worth Categories Defined.--For purposes of this
section, the terms relating to capital categories for insured
depository institutions have the same meaning as in section 38(b)(1) of
the Federal Deposit Insurance Act and the terms relating to net worth
categories for insured credit unions have the same meaning as in
section 216(c)(1) of the Federal Credit Union Act.
SEC. 6. DEPOSIT OF INSURANCE PROCEEDS.
(a) In General.--The appropriate Federal banking agency and the
National Credit Union Administration may, by order, permit an insured
depository institution or insured credit union, during the 18-month
period beginning on the date of enactment of this Act, to subtract from
such institution's or credit union's total assets in calculating
compliance with the leverage limit, applicable under section 38 of the
Federal Deposit Insurance Act or section 216(c)(2) of the Federal
Credit Union Act with respect to such insured depository institution or
insured credit union, an amount not exceeding the qualifying amount
attributable to insurance proceeds, if the agency or Administration
determines that--
(1) such institution or credit union--
(A) derives more than 50 percent of its total
deposits from persons who normally reside within, or
whose principal place of business is normally within, a
qualified disaster area;
(B) was at least adequately capitalized as of--
(i) September 24, 2005, if the qualified
disaster area referred to in subparagraph (A)
with respect to such depository institution or
credit union is the qualified disaster area
described in section 2(4)(A);
(ii) October 22, 2005, if the qualified
disaster area referred to in subparagraph (A)
with respect to such depository institution or
credit union is the qualified disaster area
described in section 2(4)(B); and
(C) has an acceptable plan for managing the
increase in its total assets and total deposits; and
(2) the subtraction is consistent with the purpose of
section 38 of the Federal Deposit Insurance Act, in the case of
an insured depository institution, and section 216 of the
Federal Credit Union Act, in the case of an insured credit
union.
(b) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Leverage limit.--The term ``leverage limit''--
(A) with respect to an insured depository
institution, has the same meaning as in section 38 of
the Federal Deposit Insurance Act; and
(B) with respect to an insured credit union, means
the net worth ratio that corresponds to the leverage
limit, as established in accordance with section
216(c)(2).
(2) Qualifying amount attributable to insurance proceeds.--
The term ``qualifying amount attributable to insurance
proceeds'' means the amount (if any) by which the institution's
or credit union's total assets exceed the institution's or
credit union's average total assets during the calendar quarter
ending before the date of the earliest Presidential
determination referred to in section 2(4), because of the
deposit of insurance payments or governmental assistance,
including government disaster relief payments, made with
respect to damage caused by, or other costs resulting from, the
major disaster within a qualified disaster area.
SEC. 7. EFFECTIVE PERIOD.
(a) In General.--Except as provided in sections 3(2), 5(a), and
6(a) and subject to subsection (b), the provisions of this Act shall
not apply after the end of the 180-day period beginning on the date of
the enactment of this Act.
(b) 30-Day Extension Authorized.--With respect to the provisions of
section 4, the 180-day period referred to in subsection (a) may be
extended for 1 additional 30-day period upon a determination by the
Board of Governors of the Federal Reserve System that such extension is
appropriate to achieve the purposes of this Act.
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