Skip to main content
U.S. flag
An official website of the United States government
Dot gov
The .gov means it’s official. 
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
Https
The site is secure. 
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
INACTIVE
This page is no longer active. Its content has expired or been rescinded by the FDIC.

REGULATORY RELIEF

Disaster Relief
September 7, 2001


TO: CHIEF EXECUTIVE OFFICER
SUBJECT: Agricultural Loans Affected by the Drought in the Klamath Basin of Southern Oregon and Northern California

The Federal Deposit Insurance Corporation (FDIC) is encouraging banks to work constructively with agricultural borrowers affected by the severe drought in the Klamath Basin of Southern Oregon and Northern California.

The FDIC recognizes that the effects of natural disasters on local businesses and individuals are often transitory, and that prudent efforts to adjust or alter terms on existing loans in areas affected by the drought should not be subject to examiner criticism. In supervising institutions impacted by the drought, the FDIC will take into consideration the unusual circumstances these institutions face. The FDIC recognizes that efforts to work with borrowers in communities under stress can be consistent with safe and sound banking practices as well as in the public interest.

For guidance on these and related matters, please contact the FDIC's San Francisco Regional Office at (415) 546-0160.

Michael J. Zamorski
Acting Director

Distribution: FDIC-Supervised Banks in the States of Oregon and California

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).


Last Updated: September 7, 2001