§__.12(t) FHLB Stocks or Federal Reserve Reserves

§__.12(t) – 3

Q: Are FHLB stocks or unpaid dividend and membership reserves with the Federal Reserve Banks “qualified investments”

A3. No. FHLB stocks or unpaid dividends, and membership reserves with the Federal Reserve Banks do not have a sufficient connection to community development to be qualified investments. However, FHLB member institutions may receive CRA consideration as a community development service for technical assistance they provide on behalf of applicants and recipients of funding from the FHLB’s Affordable Housing Program. See Q&A §__.12(i) – 3.

 

Source: Interagency Questions & Answers Regarding Community Reinvestment | July 2016

Last modified April 28, 2023