To: ALL TENNESSEE STATE CHARTERED BANKS
SUBJECT: Departmental Guidance Regarding Depository Institutions and Borrowers
Affected by Natural Disasters
Dated March 13, 1997
The department recognizes the serious impact that natural disasters could have
on the operations of financial institutions across the state and will provide
regulatory assistance to institutions subject to its supervision. The department
encourages depository institutions in areas affected by such to meet the
financial service needs of their communities.
To help facilitate the process of restoring the areas affected by any natural
disaster, the department encourages state chartered banks to work constructively
with borrowers in communities affected by these conditions and who are
experiencing difficulties due to events beyond their control. This office
realizes that the effects of such natural disasters on local businesses and
individuals are often temporary, and that prudent efforts to adjust or alter
terms on existing loans in the areas affected should not be subject to examiner
criticism. In supervising institutions impacted by such, the department will
take into consideration the unusual circumstances they face. The department
recognizes that efforts to work with borrowers in communities under stress, if
done in a manner consistent with sound banking practices, can both contribute to
the health of the community and serve the long term interests of the
institution.
If you have any questions regarding this Bulletin, please contact the department
at 615-741-2236.
Signed: Bill C. Houston, Commissioner
|
