,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #ibg  ,,in ,,the ,,house ,,of   
,,representatives  ,february #bh1 #bjac 
,mr4 ,posey 7for himself1 ,ms4 ,waters1 
,mr4 ,westmoreland1 and ,mr4 ,jones7    
introduced the following bill2 which was
 referred to the ,committee on          
,financial ,services  ,a ,,bill  ,to    
permit certain current loans that would 
otherwise be treated as non-accrual     
loans as accrual loans1 and for other   
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,common ,sense      
,economic ,recovery ,act of #bjac4  #b4 
,treatment of certain loans  7a7 ,in    
general ,for purposes of determining    
capital requirements or measuring       
capital of an insured depository        
institution under section #ch of the    
,federal ,deposit ,insurance ,act 7#ab  
,u4,s4,c4 #ahcao7 or any other provision
 of law or regulatory guidance1 an      
insured depository institution that     
would otherwise be required to treat a  
loan as a non-accrual loan may treat    

such loan as an accrual loan1 if--  7#a7
 the loan is current2  7#b7 during the  
previous #f-month period1 no monthly    
payment on the loan has been more than  
#cj days delinquent2 and  7#c7 the      
payments on the loan are being made     
pursuant to the contractual terms of the
 loan agreement and any refinances and  
modifications that are agreed to by all 
of the parties4  7b7 ,demonstration of  
ability ,to perform on a loan           
,notwithstanding subsection 7a71 a      
modified or restructured loan may not be
 treated as a non-accrual loan if the   
borrower demonstrates the ability to    
perform on such a loan--  7#a7 over a   
period of #f months2 or  7#b7 with      
respect to a loan on a quarterly1       
semi-annual1 or longer repayment        
schedule1 over a period of #c           
consecutive payments4  7c7 ,no          
additional adverse treatment ,with      
respect to a loan held by an insured    
depository institution and treated as an
 accrual loan by reason of subsection   

7a71 an appropriate ,federal banking    
agency may not impose any additional    
accounting requirements on such         
institution with respect to such loan   
compared to the requirements that would 
otherwise have been placed on such      
institution with respect to such loan if
 such loan were not being treated as an 
accrual loan by reason of subsection    
7a71 if the result of such additional   
requirement would adversely impact the  
measurement of capital of the           
institution4  7d7 ,prohibition on the   
re-,classification of loans based solely
 on collateral value ,an appropriate    
,federal banking agency may not require 
an insured depository institution to    
treat a loan as a non-accrual loan      
solely on the basis that the collateral 
of such loan has reduced in value4  7e7 
,provisions not applicable to publicly  
traded institutions ,this section shall 
not apply with respect to any issuer of 
a security registered pursuant to       
section #ab of the ,securities ,exchange

 ,act of #aicd 7#ae ,u4,s4,c4 #ghl74    
#c4 ,study  7a7 ,in general ,the        
,financial ,stability ,oversight        
,council shall conduct a study of how   
best to prevent contradictory guidance  
from being issued by appropriate        
,federal banking agencies to insured    
depository institutions with respect to 
loan classifications and capital        
requirements4  7b7 ,report ,not later   
than the end of the #fj-;day period     
beginning on the date of the enactment  
of this ,act1 the ,financial ,stability 
,oversight ,council shall issue a report
 to the ,congress containing--  7#a7 all
 determinations and conclusions made by 
the ,council in carrying out the study  
required under subsection 7a72 and  7#b7
 legislative recommendations that the   
,council believe will prevent           
contradictory guidance from being issued
 by appropriate ,federal banking        
agencies to insured depository          
institutions with respect to loan       
classifications and capital             

requirements4  #d4 ,definitions ,for    
purposes of this ,act3  7#a7            
,appropriate ,federal banking agency    
,the term appropriate ,federal banking  
agency--  7,a7 has the meaning given    
such term under section #c of the       
,federal ,deposit ,insurance ,act 7#ab  
,u4,s4,c4 #ahac72 and  7,b7 means the   
,national ,credit ,union ,administration
 ,board1 in the case of a credit union4 
7#b7 ,insured depository institution    
,the term insured depository institution
 means--  7,a7 an insured depository    
institution1 as defined under section #c
 of the ,federal ,deposit ,insurance    
,act 7#ab ,u4,s4,c4 #ahac72 and  7,b7 a 
credit union4  #e4 ,sunset ,effective   
after the end of the #b-year period     
beginning on the date of the enactment  
of this ,act1 this ,act shall cease to  
have any force or effect4