|
All words and phrases in blue in this newsletter are links to more information!
| FROM THE LEGAL DEPARTMENT |
 Here are a couple of questions resulting from the hurricanes:
Question: Our customers were temporarily displaced by Hurricane Rita. They can't make their home equity payments and need some relief. What can we do?
Answer: The Finance Commission interpretations already provide that the bank can modify a valid home equity loan (e.g. to satisfy the Servicemembers Civil Relief Act requirements). That ruling fits this scenario. See 7 TAC 153.14. Wait until the borrower can establish a new schedule. Then modify and reschedule so that the loan is payable in substantially equal installments. No new funds can be advanced. If the maturity date is extended, be sure to file an extension in the real property records.
Question: We need to sell some securities that are in our "held to maturity" portfolio in order to meet liquidity needs resulting from Hurricane Rita. How does that affect our portfolio?
Answer: Paragraph 8 of FASB Statement No. 115 indicates that events that are isolated, nonrecurring, and unusual for the reporting enterprise that could not be reasonably anticipated may cause an enterprise to sell or transfer a held-to-maturity security without necessarily calling into question its intent to hold other securities to maturity. Certainly this should be true for a sale of a security in order to meet post-hurricane liquidity needs! In short, this isolated incident should not destroy the categorization of this segment of your portfolio. Of course, it is always wise to consult your own independent accountant for further questions. Click here to read FAS 115.
 As you know, our convention has been rescheduled for November 29 - December 1 at the Gaylord Texan Resort in Grapevine. If you were previously registered, you'll receive a new confirmation in the next few days. If you were not registered, but would like to attend, you can find the new information on our web site. Note: Our new cutoff date for hotel reservations is October 31.
Here is this week's newsletter from The Baker Group. Although this information has been obtained from sources, which we believe to be reliable, we do not guarantee its accuracy. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.
|
 |
BOOKS TO  OUT |
ATTENTION Human Resource Officers! In business, effective communication between employers and employees can prevent problems and misunderstandings. Each person in an ongoing business needs to know what is expected and, in turn, what he/she can expect from the business. When such expectations are not set out clearly, problems can ensue. The Personnel Management Handbook is now available. Click here for more information.
Customer demand for an association branded gift card is at an all-time high. In 2004 close to 10 million branded Gift Cards were sold. Corporate incentive cards are expected to grow 30% per year through 2007 and now is the time to tap into this explosion of consumer interest. Click here to find out more.
Are you ready for some Football! Even though “Rita” postponed the IBAT Annual Convention, she can’t dampen the football frenzy in the state! You now have the opportunity to bid on TWO football packages to watch Texas’ two NFL teams in action. Be there as the Dallas Cowboys take on the Kansas City Chiefs on December 11 in Texas Stadium or watch the Houston Texans in action against the Kansas City Chiefs on October 30 in Reliant Stadium. These two items were slated for the IBAT PAC Auction, but due to the time-sensitive nature of the games, we want to give you an opportunity to bid on them now, while helping the IBAT PAC. Click here for more information.
 The second annual IBAT Operations Compliance Summit will be held in San Antonio, October 20-21. This unique program from Karen Neeley combines useful information on Texas laws affecting operations, with an emphasis on the latest from the Texas Legislature, plus current federal hot topics. In addition to practical tips on compliance, the program provides valuable networking opportunities for attendees. For more information and registration form, click here.
 Here are a few upcoming IBAT events you might not want to miss. For a complete listing, click here.
| DATE |
EVENT |
|
|
IRS Compliance |
|
|
Credit Risk Management Network Program |
|
|
Bank Operations Institute | |
|
