§__.11(c)(3) Special Purpose Institution Exclusivity
§§__.11(c)(3) & 195.11(c)(2) – 1 Q: Is the list of special purpose institutions exclusive? A1: No, there may be other examples of special purpose institutions. These institutions engage in specialized activities that do not involve granting credit to the public in the ordinary course of business. Special purpose institutions typically serve as correspondent banks, trust…
§__.11(c)(3) Special Purpose Institution Activities
§§__.11(c)(3) & 195.11(c)(2) – 2 Q: To be a special purpose institution, must an institution limit its activities in its charter? A2: No. A special purpose institution may, but is not required to, limit the scope of its activities in its charter, articles of association, or other corporate organizational documents. An institution that does not have legal…
§__.12(a) Affiliate Definition
§__.12(a) – 1 Q: Does the definition of “affiliate” include subsidiaries of an institution? A1: Yes, “affiliate” includes any company that controls, is controlled by, or is under common control with another company. An institution’s subsidiary is controlled by the institution and is, therefore, an affiliate. Source: Interagency Questions & Answers Regarding Community Reinvestment | July 2016
§__.12(f) Branch Definition
§__.12(f) – 1 Q: Do the definitions of “branch,” “automated teller machine (ATM)”, and “remote service facility (RSF)” include mobile branches, ATMs, and RSFs? A1: Yes. Staffed mobile offices that are authorized as branches are considered “Branches,” and mobile ATMs and RSFs are considered “ATMs” and “RSF.” §__.12(f) – 2 Q: Are loan production offices (LPO) branches for purposes of…
§__.12(g) Community Development v. Economic Development
§__.12(g) – 1 Q: Are community development activities limited to those that promote economic development? A1: No. Although the definition of “community development” includes activities that promote economic development by financing small businesses or farms, the rule does not limit community development loans and services and qualified investments to those activities. Community development also includes community- or tribal-based…
§__.12(g) Community Development Location
§__.12(g) – 2 Q: Must a community development activity occur inside a low- or moderate-income area, designated disaster area, or underserve or distressed nonmetropolitan middle-income area in order for an institution to receive CRA consideration for the activity? A2: No. Community development include activities, regardless of their location, that provide affordable housing for, or community services targeted to…
§__.12(g) Community Development in High-Cost Areas
§__.12(g) – 3 Q: Does the regulation provide flexibility in considering performance in high-cost areas? A3: Yes, the flexibility of the performance standards allows examiners to account in their evaluations for conditions in high-cost areas. Examiners consider lending and services to individuals and geographies of all income levels and businesses of all sizes and revenues. In addition the…
§__.12(g) Community Development Applicability
§__.12(g) – 4 Q: Can examples of community development activities discussed in a particular Q&A also apply to other types of community development activities not specifically discussed in that Q&A if they have a similar community development purpose? A4: Yes. The Interagency Question and Answers Regarding Community Reinvestment (Questions and Answers) provide examples of particular activities that may…
§__.12(g)(1) Affordable Housing Determination
§__.12(g)(1) – 1 Q: When determining whether a project is “affordable housing for low- or moderate-income individuals,” thereby meeting the definition of “community development,” will it be sufficient to use a formula that relates the cost of ownership, rental, or borrowing to the income levels in the area as the only factor, regardless of whether the…
§__.12(g)(2) Community Service Examples
§__.12(g)(2) – 1 Q: Community development includes community services targeted to low- or moderate-income individuals. What are examples of ways that an institution could determine that community services are offered to low- or moderate-income individuals? A1: Examples of ways in which an institution could determine that community services are targeted to low- or moderate-income persons include, but…