NR 98-15
February 10, 1998

      OCC Encourages National Banks to Work with Customers 
    Affected By the Recent Storms in New England and Northern
New York 

WASHINGTON, D.C. -- The Office of the Comptroller of the
Currency (OCC) has outlined measures to assist areas
affected by the recent storms in northern New York and parts
of New England.  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 examiner criticism. 

The OCC notified national banks in New England and northern
New York in mid-January that OCC policy 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.

National banks in need of assistance in dealing with
customers affected by storms and related disaster conditions
should contact the OCC at 315 453-1091.  

                             # # #


The OCC charters, regulates and supervises more than 2,600 national banks and
66 federal branches and agencies of foreign banks in the United States,
accounting for 56 percent of 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.