WASHINGTON
--The Office of the Comptroller of the Currency (OCC) has outlined
measures to assist national banks and their customers affected by Hurricanes
Bonnie and Charley. 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:
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extending
the terms of loan repayments;
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restructuring
a borrowers debt obligations; and,
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easing
credit terms for new loans to certain borrowers, consistent with prudent banking practice.
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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 hurricanes temporarily.
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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 nations 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.