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�౦��Ϸ���� (�౦��Ϸ����) 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 �౦��Ϸ���� 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 �౦��Ϸ���� will take into consideration the unusual circumstances these institutions face. The �౦��Ϸ���� 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 �౦��Ϸ����'s San Francisco Regional Office at (415) 546-0160.

Distribution: �౦��Ϸ����-Supervised Banks in the States of Oregon and California

NOTE: Paper copies of �౦��Ϸ���� financial institution letters may be obtained through the �౦��Ϸ����'s Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).