FLOOD03666 - Laserfiche WebLink

Home Browse Search

Several banks informed the commissioner that they received a great deal of cooperation from national concerns, manufacturers, and suppliers, and that these companies had been extremely generous in supplying new inventories when the banks could help in this respect. The banks then could supply operating funds and, as a result, the businesses were able to resume operating qUickly. The industrial banks in Denver and the metropolitan area also took immediate action to assist flood victims. Some of these institu- tions waived payments on existing debts for periods up to six months; low interest rate loans were made available to repair homes; maturity dates on notes were lengthened and additional funds advanced to flood victims; interest-free loans of up to $500 were made available; and these institutions cooperated with the American Red Cross in cases where individuals incurred a total loss of their property. Repossessed furniture was donated to families whose household belongings had been destroyed and, in several instances, furniture dealers financed by industrial banks sold furniture to flood victims at cost. Since credit unions are limited to making loans to members only, their ability to assist in an emergency is restricted. However, in those instances where credit union members were victims of the floods, the organizations involved advanced funds to help the members, and one large credit union was prepared to absorb the loss on three real estate loans on homes owned by members. The consumer finance industry was also reported by the State Bank Commissioner as contributing substantially in the effort to aid flood victims. Some of the larger companies instructed their local offices to extend credit to flood victims on liberal terms; one company immediately set up a clothing distribution center, with clothing being donated by its employees, interest-free loans were made, usually for about $300, although some loans as high as $1,000 for 25 months were made to flood victims. In order to assist their customers, some companies granted extensions without additional charges and waived in- terest on existing debts. The finance companies also reported that they received a great deal of cooperation from the American Red Cross and the Salvation Army in aiding flood victims. The losses resulting from the floods were widely distributed, and no individual bank or other lending institution had a large number or a large volume of loans to individuals or firms in the disaster areas. The State Bank Commissioner reported that the banks were in sound condition and well capitalized and, with a few exceptions, had adequate reserves to absorb resulting losses. There are problems in some of the smaller institutions, however, and it may take several years to work out the loans made to aid the flood victims. Also, several banking institutions were victims of the flood ... in Byers, Lamar, Granada, and Holly where losses of equipment and records were incurred. Regardless of this misfortune, however, they continued to serve the people in their communities, and the Holly bank continued its operations from a school building after the flood. Some of these banks indicated that, over a period of time, the over-all effect of the disaster will prove to be more beneficial to their economy than detre- mental, and this is particularly true in those areas where drought conditions existed prior to the floods. As a result of the moisture, crop prospects improved, grass became available for livestock, and . 12 .