H.R.3945 - Hurricane Katrina Financial Services Relief Act of 2005109th Congress (2005-2006)
Summary: H.R.3945 — 109th Congress (2005-2006)
Passed House amended (10/27/2005)
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.