ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release March 1, 2001 #01-16
E-mail: [email protected]

ACB APPLAUDS PASSAGE OF BANKRUPTCY BILL

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Statement by Robert R. Davis, managing director of government relations, America’s Community Bankers, on the bankruptcy reform bill passed by the House today:

“America’s Community Bankers strongly supports the bankruptcy reform measure passed by the House and we will work to achieve passage in the Senate. This bill is a ‘win’ for consumers and a ‘win’ for community lenders by providing appropriate protections for those who need it, but also requiring those who can repay all or part of their debts to do so.

“Community banks have a long history of working with borrowers who find themselves in dire financial straits. This legislation reinforces the ability of lenders and borrowers to work cooperatively in resolving financial difficulties before bankruptcy protection is sought, as well as during the bankruptcy process. We also applaud the bill’s increased protection for women and children by prioritizing child support and alimony payments over all other debts in bankruptcy proceedings.

“The legislation will also hold down the cost of home mortgage loans by once-and-for-all prohibiting federal district courts from reducing the value of secured mortgage loans in bankruptcy proceedings. The U.S. Supreme Court outlawed ‘cramdowns’ in 1993, but the practice persists.”

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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