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Reminder of Supervisory Guidance for Financial Institutions
Affected by Hurricane Katrina
(February 5, 2007)

Financial institutions serving the U.S. Gulf Coast region have demonstrated significant flexibility in
responding to the changing needs of their customers by offering relief when appropriate to the
customer’s circumstances. These temporary hardship and workout programs have facilitated recovery
efforts throughout the Gulf Coast. However, given the extent of devastation caused by Hurricane
Katrina, many uncertainties remain, including insurance claims that are still being processed. As a
result, some customers may need additional time to resolve financial uncertainties related to the effects
of the hurricane.
The Agencies1[Fotne and the state supervisory authorities in Alabama, Louisiana, and Mississippi remind their
examiners, and the financial institutions doing business in the Gulf Coast region, that the principles
outlined in the Hurricane Katrina Examiner Guidance (Katrina Guidance2[Fotne ) remain in effect and should
be considered when making decisions regarding payment deferrals, loan modifications, extensions,
restructurings or other workout programs. Effective loan workout and recovery programs may involve
protracted resolutions, but should be ultimately targeted toward loan repayment.
The Katrina Guidance makes it clear that an institution retains flexibility in its workout or restructuring
arrangements with customers still facing uncertainties. Working constructively with borrowers is in the
long-term best interest of both the financial institution and the customer. Following the prudent
practices outlined in the Katrina Guidance will enable financial institutions to continue to assist
customers and communities throughout the recovery process.

- The federal financial institutions regulatory Agencies consist of the Board of Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the
Currency, and the Office of Thrift Supervision (collectively, the Agencies).EndofFootnote1]
- The Katrina Guidance can be located at:]