WASHINGTON --The Office of the Comptroller of the Currency (OCC)
has outlined measures to assist national banks and their customers affected by
Hurricane Katrina. 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
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The Office of the
Comptroller of the Currency was created by Congress to charter national banks,
to oversee a nationwide system of banking institutions, and to assure that
national banks are safe and sound, competitive and profitable, and capable of
serving in the best possible manner the banking needs of their customers.