Bill > HR927

This bill, titled the Common Sense Economic Recovery Act of 2013, allows certain loans that are currently considered "non-accrual loans" to be treated as "accrual loans" for the purpose of calculating capital requirements for insured depository institutions, which are banks and credit unions that accept federally insured deposits. A loan can be reclassified as an accrual loan if it is current, has had no monthly payments more than 30 days late in the past six months, and payments are being made according to the loan agreement or any agreed-upon modifications. Additionally, modified or restructured loans can be treated as accrual loans if the borrower can demonstrate an ability to make payments over a specified period. The bill also prohibits federal banking agencies from imposing additional accounting requirements that would negatively impact an institution's capital measurement due to this reclassification, and prevents loans from being classified as non-accrual solely because the collateral value has decreased. This provision does not apply to publicly traded institutions. The bill also mandates a study by the Financial Stability Oversight Council to prevent conflicting guidance from federal banking agencies regarding loan classifications and capital requirements, with a report to Congress to follow. Finally, this act will expire two years after its enactment.