§ 2903. — Financial institutions; evaluation.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC2903]
TITLE 12--BANKS AND BANKING
CHAPTER 30--COMMUNITY REINVESTMENT
Sec. 2903. Financial institutions; evaluation
(a) In general
In connection with its examination of a financial institution, the
appropriate Federal financial supervisory agency shall--
(1) assess the institution's record of meeting the credit needs
of its entire community, including low- and moderate-income
neighborhoods, consistent with the safe and sound operation of such
institution; and
(2) take such record into account in its evaluation of an
application for a deposit facility by such institution.
(b) Majority-owned institutions
In assessing and taking into account, under subsection (a) of this
section, the record of a nonminority-owned and nonwomen-owned financial
institution, the appropriate Federal financial supervisory agency may
consider as a factor capital investment, loan participation, and other
ventures undertaken by the institution in cooperation with minority- and
women-owned financial institutions and low-income credit unions provided
that these activities help meet the credit needs of local communities in
which such institutions and credit unions are chartered.
(c) Financial holding company requirement
(1) In general
An election by a bank holding company to become a financial
holding company under section 1843 of this title shall not be
effective if--
(A) the Board finds that, as of the date the declaration of
such election and the certification is filed by such holding
company under section 1843(l)(1)(C) of this title, not all of
the subsidiary insured depository institutions of the bank
holding company had achieved a rating of ``satisfactory record
of meeting community credit needs'', or better, at the most
recent examination of each such institution; and
(B) the Board notifies the company of such finding before
the end of the 30-day period beginning on such date.
(2) Limited exclusions for newly acquired insured depository
institutions
Any insured depository institution acquired by a bank holding
company during the 12-month period preceding the date of the
submission to the Board of the declaration and certification under
section 1843(l)(1)(C) of this title may be excluded for purposes of
paragraph (1) during the 12-month period beginning on the date of
such acquisition if--
(A) the bank holding company has submitted an affirmative
plan to the appropriate Federal financial supervisory agency to
take such action as may be necessary in order for such
institution to achieve a rating of ``satisfactory record of
meeting community credit needs'', or better, at the next
examination of the institution; and
(B) the plan has been accepted by such agency.
(3) Definitions
For purposes of this subsection, the following definitions shall
apply:
(A) Bank holding company; financial holding company
The terms ``bank holding company'' and ``financial holding
company'' have the meanings given those terms in section 1841 of
this title.
(B) Board
The term ``Board'' means the Board of Governors of the
Federal Reserve System.
(C) Insured depository institution
The term ``insured depository institution'' has the meaning
given the term in section 1813(c) of this title.
(Pub. L. 95-128, title VIII, Sec. 804, Oct. 12, 1977, 91 Stat. 1148;
Pub. L. 102-550, title IX, Sec. 909(1), Oct. 28, 1992, 106 Stat. 3874;
Pub. L. 106-102, title I, Sec. 103(b), Nov. 12, 1999, 113 Stat. 1350.)
Amendments
1999--Subsec. (c). Pub. L. 106-102 added subsec. (c).
1992--Pub. L. 102-550 designated existing provisions as subsec. (a),
inserted heading, and added subsec. (b).
Effective Date of 1999 Amendment
Amendment by Pub. L. 106-102 effective 120 days after Nov. 12, 1999,
see section 161 of Pub. L. 106-102, set out as a note under section 24
of this title.
Section Referred to in Other Sections
This section is referred to in sections 1831u, 1842, 2906, 2908 of
this title.
