12 C.F.R. § 563e.25 Community development test for wholesale or limited purpose savings associations.
Title 12 - Banks and Banking
(a) Scope of test. The OTS assesses a wholesale or limited purpose savings association's record of helping to meet the credit needs of its assessment area(s) under the community development test through its community development lending, qualified investments, or community development services. (b) Designation as a wholesale or limited purpose savings association. In order to receive a designation as a wholesale or limited purpose savings association, a savings association shall file a request, in writing, with the OTS, at least three months prior to the proposed effective date of the designation. If the OTS approves the designation, it remains in effect until the savings association requests revocation of the designation or until one year after the OTS notifies the savings association that the OTS has revoked the designation on its own initiative. (c) Performance criteria. The OTS evaluates the community development performance of a wholesale or limited purpose savings association pursuant to the following criteria: (1) The number and amount of community development loans (including originations and purchases of loans and other community development loan data provided by the savings association, such as data on loans outstanding, commitments, and letters of credit), qualified investments, or community development services; (2) The use of innovative or complex qualified investments, community development loans, or community development services and the extent to which the investments are not routinely provided by private investors; and (3) The savings association's responsiveness to credit and community development needs. (d) Indirect activities. At a savings association's option, the OTS will consider in its community development performance assessment: (1) Qualified investments or community development services provided by an affiliate of the savings association, if the investments or services are not claimed by any other institution; and (2) Community development lending by affiliates, consortia and third parties, subject to the requirements and limitations in §563e.22 (c) and (d). (e) Benefit to assessment area(s)—(1) Benefit inside assessment area(s). The OTS considers all qualified investments, community development loans, and community development services that benefit areas within the savings association's assessment area(s) or a broader statewide or regional area that includes the savings association's assessment area(s). (2) Benefit outside assessment area(s). The OTS considers the qualified investments, community development loans, and community development services that benefit areas outside the savings association's assessment area(s), if the savings association has adequately addressed the needs of its assessment area(s). (f) Community development performance rating. The OTS rates a savings association's community development performance as provided in Appendix A of this part.
Title 12: Banks and Banking
PART 563e—COMMUNITY REINVESTMENT
Subpart B—Standards for Assessing Performance
§ 563e.25 Community development test for wholesale or limited purpose savings associations.
