text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Hurricane Katrina Financial Services 
  Relief Act of 2005''.
  
  SEC. 2. FINDINGS.
  
      The Congress finds as follows:
              (1) On August 29, 2005, Hurricane Katrina, a category 4 
          storm with an impact area of 90,000 square miles, reached 
          landfall devastating the States of Louisiana, Mississippi and 
          Alabama, causing loss of life and property.
              (2) Levee breaches in the flood control system for the city 
          of New Orleans as a result of Hurricane Katrina resulted in 
          tragic flooding, causing additional loss of life and property.
              (3) Due to the substantial damage to both property and 
          infrastructure, more than 1,000,000 people were made homeless 
          or brought under financial duress by the effects of Hurricane 
          Katrina.
              (4) At least 120 insured depository institutions and 96 
          insured credit unions are located in the areas of Texas, 
          Louisiana, Mississippi and Alabama, declared as major disaster 
          areas by the President.
  
  SEC. 3. DEFINITIONS.
  
      For purposes of this Act, the following definitions shall apply:
              (1) Appropriate federal banking agency.--The term 
          ``appropriate Federal banking agency'' has the same meaning as 
          in section 3 of the Federal Deposit Insurance Act.
              (2) Insured credit union.--The term ``insured credit 
          union'' has the same meaning as in section 101 of the Federal 
          Credit Union Act.
              (3) Insured depository institution.--The term ``insured 
          depository institution'' has the same meaning as in section 3 
          of the Federal Deposit Insurance Act.
              (4) Qualified disaster area.--The term ``qualified disaster 
          area'' means any area within Alabama, Louisiana, Florida, or 
          Mississippi in which the President, pursuant to section 401 of 
          the Robert T. Stafford Disaster Relief and Emergency Assistance 
          Act, has determined, on or after August 25, 2005, that a major 
          disaster exists due to Hurricane Katrina.
  
  SEC. 4. SENSE OF THE CONGRESS ON CASHING OF GOVERNMENT CHECKS.
  
      It is the sense of the Congress that--
              (1) it is vital that insured depository institutions and 
          insured credit unions continue to provide financial services to 
          consumers displaced or otherwise affected by Hurricane Katrina, 
          which includes the cashing of Federal government assistance and 
          benefit checks;
              (2) the Secretary of the Treasury and the Federal financial 
          regulators should seek to educate insured depository 
          institutions and insured credit unions on the proper 
          application of the guidance issued by the Secretary on cashing 
          of Federal government assistance and benefit checks and 
          published in the Federal Register while such guidance is in 
          effect; and
              (3) the Federal financial regulators should continue to 
          work with the insured depository institutions and insured 
          credit unions operating under extraordinary circumstances to 
          facilitate the cashing of Federal government assistance and 
          benefit checks.
  
  SEC. 5. WAIVER OF FEDERAL RESERVE BOARD FEES FOR CERTAIN SERVICES.
  
      Notwithstanding section 11A of the Federal Reserve Act or any other 
  provision of law, during the effective period of this section, a 
  Federal reserve bank shall waive or rebate any transaction fee for wire 
  transfer services that otherwise would be imposed on any insured 
  depository institution or insured credit union that as of August 28, 
  2005, was headquartered in a qualified disaster area.
  
  SEC. 6. FLEXIBILITY IN CAPITAL AND NET WORTH STANDARDS FOR AFFECTED 
                INSTITUTIONS.
  
      (a) In General.--Notwithstanding section 38 of the Federal Deposit 
  Insurance Act, section 216 of the Federal Credit Union Act, or any 
  other provision of Federal law, during the 18-month period beginning on 
  the date of enactment of this Act, the appropriate Federal banking 
  agency and the National Credit Union Administration may forbear from 
  taking any action required under any such section or provision, on a 
  case-by-case basis, with respect to any undercapitalized insured 
  depository institution or undercapitalized insured credit union that is 
  not significantly or critically undercapitalized, if such agency or 
  Administration determines that--
              (1) the insured depository institution or insured credit 
          union derives more than 50 percent of its total deposits from 
          persons who normally reside within, or whose principal place of 
          business is normally within, a qualified disaster area;
              (2) the insured depository institution or insured credit 
          union was at least adequately capitalized as of August 25, 
          2005;
              (3) the reduction in the capital or net worth category of 
          the insured depository institution or insured credit union is 
          directly attributable to the impact of Hurricane Katrina; and
              (4) forbearance from any such action--
                      (A) would facilitate the recovery of the insured 
                  depository institution or insured credit union from the 
                  disaster in accordance with a recovery plan or a 
                  capital or net worth restoration plan established by 
                  such depository institution or credit union; and
                      (B) would be consistent with safe and sound 
                  practices.
      (b) Capital and Net Worth Categories Defined.--For purposes of this 
  section, the terms relating to capital categories for insured 
  depository institutions have the same meaning as in section 38(b)(1) of 
  the Federal Deposit Insurance Act and the terms relating to net worth 
  categories for insured credit unions have the same meaning as in 
  section 216(c)(1) of the Federal Credit Union Act.
  
  SEC. 7. DEPOSIT OF INSURANCE PROCEEDS.
  
      (a) In General.--The appropriate Federal banking agency and the 
  National Credit Union Administration may, by order, permit an insured 
  depository institution or insured credit union, during the 18-month 
  period beginning on the date of enactment of this Act, to subtract from 
  such institution's or credit union's total assets in calculating 
  compliance with the leverage limit, applicable under section 38 of the 
  Federal Deposit Insurance Act or section 216(c)(2) of the Federal 
  Credit Union Act with respect to such insured depository institution or 
  insured credit union, an amount not exceeding the qualifying amount 
  attributable to insurance proceeds, if the agency or Administration 
  determines that--
              (1) such institution or credit union--
                      (A) derives more than 50 percent of its total 
                  deposits from persons who normally reside within, or 
                  whose principal place of business is normally within, a 
                  qualified disaster area;
                      (B) was at least adequately capitalized as of 
                  August 25, 2005; and
                      (C) has an acceptable plan for managing the 
                  increase in its total assets and total deposits; and
              (2) the subtraction is consistent with the purpose of 
          section 38 of the Federal Deposit Insurance Act, in the case of 
          an insured depository institution, and section 216 of the 
          Federal Credit Union Act, in the case of an insured credit 
          union.
      (b) Definitions.--For purposes of this section, the following 
  definitions shall apply:
              (1) Leverage limit.--The term ``leverage limit''--
                      (A) with respect to an insured depository 
                  institution, has the same meaning as in section 38 of 
                  the Federal Deposit Insurance Act; and
                      (B) with respect to an insured credit union, means 
                  the net worth ratio that corresponds to the leverage 
                  limit, as established in accordance with section 
                  216(c)(2).
              (2) Qualifying amount attributable to insurance proceeds.--
          The term ``qualifying amount attributable to insurance 
          proceeds'' means the amount (if any) by which the institution's 
          or credit union's total assets exceed the institution's or 
          credit union's average total assets during the calendar quarter 
          ending before the date of the earliest Presidential 
          determination referred to in section 3(4), because of the 
          deposit of insurance payments or governmental assistance, 
          including government disaster relief payments, made with 
          respect to damage caused by, or other costs resulting from, the 
          major disaster within a qualified disaster area.
  
  SEC. 8. EFFECTIVE PERIOD.
  
      (a) In General.--Except as provided in sections 4(2), 6(a), and 
  7(a) and subject to subsection (b), the provisions of this Act shall 
  not apply after the end of the 180-day period beginning on the date of 
  the enactment of this Act.
      (b) 30-Day Extension Authorized.--With respect to the provisions of 
  section 5, the 180-day period referred to in subsection (a) may be 
  extended for 1 additional 30-day period upon a determination by the 
  Board of Governors of the Federal Reserve System that such extension is 
  appropriate to achieve the purposes of this Act.
  
              Passed the House of Representatives October 27, 2005.
  
              Attest:
  
                                                   JEFF TRANDAHL,
  
                                                                   Clerk.
target: Hurricane Katrina Financial Services Relief Act of 2005 - (Sec. 4) Expresses the sense of Congress that it is vital that insured depository institutions and insured credit unions continue to provide financial services to consumers displaced or otherwise affected by Hurricane Katrina, which includes the cashing of federal government assistance and benefit checks.
  
  Urges the Secretary of the Treasury and federal financial regulators to seek to educate insured depository institutions and insured credit unions on the proper application of the guidance on cashing of federal government assistance and benefit checks.
  
  Urges federal financial regulators to continue to work with such institutions and credit unions operating under extraordinary circumstances to facilitate the cashing of federal government assistance and benefit checks.
  
  (Sec. 5) Requires a federal reserve bank to waive or rebate any transaction fee for wire transfer services that otherwise would be imposed on any insured depository institution or insured credit union that, as of August 28, 2005, was headquartered in a qualified disaster area.
  
  (Sec. 6) Authorizes a federal financial regulator in specified circumstances to: (1) forbear from taking any action, on a case-by-case basis, with respect to any undercapitalized insured entity that is not significantly or critically undercapitalized; and (2) permit such entity, in calculating compliance with the applicable leverage limit, to subtract from its total assets an amount not exceeding the qualifying amount attributable to insurance proceeds.
  
  Identifies such an insured entity as one that: (1) derives more than 50% of its total deposits from persons who normally reside within, or whose principal place of business is normally within, a qualified disaster area; (2) was adequately capitalized as of August 25, 2005; (3) incurred reduction of its capital or net worth category as a direct result of Hurricane Katrina;(4) has established a recovery plan, or a capital or net worth restoration plan; and (5) has an acceptable plan for managing the increase in its total assets and deposits.
  
  (Sec. 8) Terminates the application of this Act 180 days after its enactment. Allows one additional 30-day extension by the Board of Governors of the Federal Reserve System of the application period.
feat_title: Agreed to amend the title so as to read: "A Bill to facilitate recovery from the effects of Hurricane Katrina by providing greater flexibility for, and temporary waivers of certain requirements and fees imposed on, depository institutions, credit unions, and Federal regulatory agencies, and for other purposes".