WASHINGTON --The
Office of the Comptroller of the Currency (OCC) has outlined measures to assist
national banks and their customers affected by Hurricane Frances. The OCC regulates national banks.
The
OCC recognizes that the effects of natural disasters on individuals and
businesses are often temporary, and that prudent efforts to adjust or alter
terms on existing loans in areas affected by the disasters and related problems
should not be subject to bank examiner criticism.
The
OCC encourages national banks to consider various alternatives that may
include:
- extending the terms of loan repayments;
- restructuring a borrower’s debt obligations; and,
- easing credit terms for new loans to certain borrowers,
consistent with prudent banking practice.
The
OCC notes that these measures could help borrowers recover their financial
strength and enable them to be in a better position to repay their debts. These recovery efforts can contribute to
the health of the local community and the long-term interests of the national
bank and its customers.
In
addition, the OCC has authorized national banks to close offices affected by
the hurricane temporarily.
National
banks in need of assistance in dealing with customers affected by the hurricane
should contact
the OCC.
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The OCC charters, regulates and examines approximately
2,000 national banks and 51 federal branches of foreign banks in the U.S.,
accounting for more than 56 percent of the nation’s banking assets. Its mission
is to ensure a safe and sound and competitive national banking system that
supports the citizens, communities and economy of the United States.