BB 92-69
BANKING ISSUANCES

Comptroller of the Currency
Administrator of National Banks
Type:  Banking Bulletin
Subject:  Depository Institutions Disaster Relief Act of 1992

To:  Chief Executive Officers of All National Banks, Deputy Comptrollers,
     Department and Division Heads, and All Examining Personnel

PURPOSE

On October 23, 1992, the President signed the Depository Institutions
Disaster Relief Act of 1992 ("Act").  The Act grants the federal financial
institution regulatory agencies (Agencies) the authority to temporarily
exempt certain regulatory requirements within locations that are declared
a "major disaster area" by the President of the United States.

The Act covers the financial regulatory areas that Congress deemed most
beneficial to the prompt recovery of an area, as follows:

* Appraisal Requirements.  Permanent change.  Section 2 of the Act permits
  the Agencies to grant exceptions to the federal appraisal requirements
  for qualifying real property related transactions in a declared Major
  Disaster Area ("MDA").  The exemption lasts for a period not to exceed
  three years from the date of declaration.

  For this Section to be in effect, the Agencies must publish a Statement
  and Notice of Order, or a regulation, in the Federal Register activating
  the provisions for a specific MDA.

* Truth in Lending and Expedited Funds Acts.  Temporary change.  From
  October 23, 1992 through April 20,1993, the Board of Governors of the
  Federal Reserve System (FRB) is authorized by Section 3 to grant
  exceptions to the requirements of the Truth in Lending Act and the
  Expedited Funds Availability Act for transactions in an MDA.

  For this section to be in effect, the FRB must publish a regulation or
  Order in the Federal Register activating the provisions for the specific
  MDA.

* Publication Requirements.  Temporary change.  From October 23, 1992
  through April 20, 1993, Section 5 of the Act authorizes the Agencies to
  grant exemptions from publication and notice requirements relating to
  corporate activities as well as certain requirements of the
  Administrative Procedures Act.

  For this section to be in effect, the Agencies must publish a Statement
  and Notice of Order, or a regulation, in the Federal Register activating
  the provisions for the specific MDA.

* Deposit of Insurance Proceeds.  Temporary change.  From October 23, 1992
  through April 22, 1994, Section 4 of the Act authorizes the Agencies to
  grant an exception for abnormal deposit growth of a financial
  institution located in the MDA.  This exception permits the deduction of
  certain disaster-related deposits from total assets when calculating the
  leverage ratio under risked-based capital for the prompt corrective
  action requirements of Section 38 of the Federal Deposit Insurance Act.

  This section does not require publication of an order in the Federal
  Register.  However, to be in effect, each bank desiring to be granted an
  exception must qualify and apply for a specific order to be issued to
  the bank by the District.

ACTION

The OCC, on November 17, 1992, in conjunction with the other participating
Agencies, published a Statement and Notice of Order activating the
provisions of Section 2 the Act for the MDAs declared on:

  * May 2, 1992 for the civil unrest in Los Angeles; 
  * August 24, 1992 for Hurricane Andrew in Florida;
  * August 26, 1992 for Hurricane Andrew in Louisiana; and,
  * September 12, 1992 for Hurricane Iniki in Hawaii.
 
The Order is effective as of the date of publication, November 17, 1992.
Accordingly, the provisions of this Act my be applied retroactive to the
date of declaration for qualifying transactions in each of the specific
MDAs.

Attached to this Banking Bulletin are:

  1.  A copy of the interagency news release.

  2.  A copy of the interagency Statement and Order dealing with real
  estate appraisals.

  3.  A copy of Fannie Mae's guidance regarding real estate appraisals and
  the secondary market.

  4.  A copy of the Order published by the Federal Reserve regarding Truth
  in Lending.

  5.  An enrolled copy of DIDRA.

Questions concerning the applicability of the provisions in the Act to
your bank should be directed to the OCC office responsible for supervising
your institution.  Specific questions regarding Truth in Lending and
Expedited Funds Availability should be directed to your District Federal
Reserve Bank.

RESPONSIBLE OFFICE

Questions concerning this bulletin should be directed to the Office of the
Chief National Bank Examiner, (202) 874-5170.




                              
Jerilyn Gilland
Acting Chief National Bank Examiner


Date:  December 17, 1992