October 29, 2007
DFI Determines that Extraordinary Situation has Subsided
Encourages financial institutions to continue to explore various ways to offer relief to fire victims in their communities
The California Department of Financial Institutions (DFI) today announced that banks located in the counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara and Ventura declared to be in a state of emergency by the Governor on October 21, 2007 are safe to open any or all of their offices affected by the fires.
On October 22, 2007 pursuant to California Financial Code Section 3600, the "Bank Extraordinary Situation Closing Act," Chief Deputy Commissioner of Financial Institutions Carol D. Chesbrough, authorized banks located in the counties declared to be in a state of emergency to close any or all of their offices. Any office or offices so closed shall remain closed until the Department proclaims that the extraordinary situation has ended or until such earlier time as the officers of the bank determine that one or more closed offices should reopen and, in either event, for such further time thereafter as may reasonably be required for the reopening of the office or offices. Approval must be obtained for bank offices to remain closed after today. Please contact your Assistant Deputy Commissioner.
DFI encourages banks and credit unions to continue to explore various ways to offer relief to fire victims in their communities. Potential options include payment holidays, extensions or other modifications for existing loan and credit card customers as well as special programs such as reduced fees or rates on disaster-relief loan products for new customers.
Financial institutions may consider other areas of relief besides loan products to assist fire victims such as facilitating temporary living assistance and/or providing food, bottled water and other donations of needed supplies at branches located in affected areas.