WASHINGTON
--The Office of the Comptroller of the Currency (OCC) has outlined
measures to assist national banks and their customers affected by Hurricane
Jeanne. 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 borrowers 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.
# # #