NR 98-79
July 31, 1998
                                
     OCC Encourages National Banks to Work with Customers 
     Affected By Droughts in Texas, Oklahoma and Florida   
                                
WASHINGTON, D.C. -- The Office of the Comptroller of the Currency
(OCC) has outlined measures to assist areas affected by the
droughts in Texas, Oklahoma and Florida.  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 borrower's 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.

National banks in need of assistance in dealing with customers
affected by the droughts should contact the OCC.  National banks
in Texas and Oklahoma should the OCC district office in Dallas at
(214) 720-0656.  National banks in Florida should contact the OCC
district office in Atlanta at (404) 659-8855.               

                              # # #
The OCC charters, regulates and examines approximately 2,600 national banks and 66 federal
branches and agencies of foreign banks in the United States, accounting for 58 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.