Congress Bids To Insure Bad HurricaneKatrina Checks

Register now

WASHINGTON - (09/23/05) -- Legislation introduced in the HouseThursday will indemnify up to $200 million in bad checks cashed ordeposited on credit unions and banks seeking to serve victims ofHurricane Katrina. The Hurricane Katrina Check Cashing Relief Actwill indemnify checks of up to $2,000 per person drawn on creditunions or banks in the regions declared a state of emergency forKatrina between August 28 and October 31. The funds to insure thechecks will come from the Federal Reserve's surplus. The bill isexpected to be passed quickly by Congress.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER