NR 97-30
March 18, 1997

       OCC Outlines Measures to Assist Flood Stricken Areas

WASHINGTON, D.C. -- The Office of the Comptroller of the Currency
(OCC) today outlined measures to assist areas that experienced
recent flooding, storms, and related disaster conditions.

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 examiner criticism. 

OCC policy as stated in OCC Bulletin 97-15 encourages national
banks to consider
various alternatives that may include:

-  extending the terms of loan repayments;

-  restructuring a borrower's debt obligations; and,

-  easing loan documentation or 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.

It is OCC policy for examiners not to criticize prudent efforts
by national banks to adjust or alter loan repayment terms or
extend new loans to borrowers affected by a natural disaster.

The OCC will also use accelerated procedures to approve temporary
banking facilities for a national bank with destroyed or severely
damaged branches that wants to serve customers affected by the
floods.

National banks in need of assistance in dealing with customers
affected by flooding, storms, and related disaster conditions
should contact the OCC's district offices located in Chicago,
Kansas City, New York, Atlanta, Dallas, and San Francisco.  

                             # # #

The OCC charters, regulates and supervises approximately 2,800 national banks
and 66 federal branches and agencies of foreign banks in the U.S., accounting
for more than half the nation's banking assets.  Its mission is to ensure a
safe, sound and competitive national banking system that supports the
citizens, communities and economy of the United States.