12 U.S.C. § 2906 — Written evaluations

Page 1476 TITLE 12—BANKS AND BANKING § 2906 1 So in original. Probably should be paragraph ‘‘(1)(A)(iii)’’. applicable to savings associations and the Board of Governors shall prescribe regulations applicable to in- sured State member banks, bank holding companies and savings and loan holding companies,’’ after ‘‘super- visory agency’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the trans- fer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress. § 2906. Written evaluations (a) Required (1) In general Upon the conclusion of each examination of an insured depository institution under sec- tion 2903 of this title, the appropriate Federal financial supervisory agency shall prepare a written evaluation of the institution’s record of meeting the credit needs of its entire com- munity, including low- and moderate-income neighborhoods. (2) Public and confidential sections Each written evaluation required under paragraph (1) shall have a public section and a confidential section. (b) Public section of report (1) Findings and conclusions (A) Contents of written evaluation The public section of the written evalua- tion shall— (i) state the appropriate Federal finan- cial supervisory agency’s conclusions for each assessment factor identified in the regulations prescribed by the Federal fi- nancial supervisory agencies to implement this chapter; (ii) discuss the facts and data supporting such conclusions; and (iii) contain the institution’s rating and a statement describing the basis for the rating. (B) Metropolitan area distinctions The information required by clauses (i) and (ii) of subparagraph (A) shall be pre- sented separately for each metropolitan area in which a regulated depository institution maintains one or more domestic branch of- fices. (2) Assigned rating The institution’s rating referred to in para- graph (1)(C) 1 shall be 1 of the following: (A) ‘‘Outstanding record of meeting com- munity credit needs’’. (B) ‘‘Satisfactory record of meeting com- munity credit needs’’. (C) ‘‘Needs to improve record of meeting community credit needs’’. (D) ‘‘Substantial noncompliance in meet- ing community credit needs’’. Such ratings shall be disclosed to the public on and after July 1, 1990. (c) Confidential section of report (1) Privacy of named individuals The confidential section of the written eval- uation shall contain all references that iden- tify any customer of the institution, any em- ployee or officer of the institution, or any per- son or organization that has provided informa- tion in confidence to a Federal or State finan- cial supervisory agency. (2) Topics not suitable for disclosure The confidential section shall also contain any statements obtained or made by the ap- propriate Federal financial supervisory agency in the course of an examination which, in the judgment of the agency, are too sensitive or speculative in nature to disclose to the insti- tution or the public. (3) Disclosure to depository institution The confidential section may be disclosed, in whole or part, to the institution, if the appro- priate Federal financial supervisory agency determines that such disclosure will promote the objectives of this chapter. However, disclo- sure under this paragraph shall not identify a person or organization that has provided infor- mation in confidence to a Federal or State fi- nancial supervisory agency. (d) Institutions with interstate branches (1) State-by-State evaluation In the case of a regulated financial institu- tion that maintains domestic branches in 2 or more States, the appropriate Federal financial supervisory agency shall prepare— (A) a written evaluation of the entire in- stitution’s record of performance under this chapter, as required by subsections (a), (b), and (c); and (B) for each State in which the institution maintains 1 or more domestic branches, a separate written evaluation of the institu- tion’s record of performance within such State under this chapter, as required by sub- sections (a), (b), and (c). (2) Multistate metropolitan areas In the case of a regulated financial institu- tion that maintains domestic branches in 2 or more States within a multistate metropolitan area, the appropriate Federal financial super- visory agency shall prepare a separate written evaluation of the institution’s record of per- formance within such metropolitan area under this chapter, as required by subsections (a), (b), and (c). If the agency prepares a written evaluation pursuant to this paragraph, the scope of the written evaluation required under paragraph (1)(B) shall be adjusted accordingly. (3) Content of State level evaluation A written evaluation prepared pursuant to paragraph (1)(B) shall— (A) present the information required by subparagraphs (A) and (B) of subsection (b)(1) separately for each metropolitan area in which the institution maintains 1 or more domestic branch offices and separately for the remainder of the nonmetropolitan area of the State if the institution maintains 1 or more domestic branch offices in such non- metropolitan area; and (B) describe how the Federal financial su- pervisory agency has performed the exam- ination of the institution, including a list of the individual branches examined. Page 1477 TITLE 12—BANKS AND BANKING § 2908 1 So in original. Probably should be ‘‘minority depository insti- tution’’. (e) Definitions For purposes of this section the following defi- nitions shall apply: (1) Domestic branch The term ‘‘domestic branch’’ means any branch office or other facility of a regulated financial institution that accepts deposits, lo- cated in any State. (2) Metropolitan area The term ‘‘metropolitan area’’ means any primary metropolitan statistical area, metro- politan statistical area, or consolidated met- ropolitan statistical area, as defined by the Director of the Office of Management and Budget, with a population of 250,000 or more, and any other area designated as such by the appropriate Federal financial supervisory agency. (3) State The term ‘‘State’’ has the same meaning as in section 1813 of this title. (Pub. L. 95–128, title VIII, § 807, as added Pub. L. 101–73, title XII, § 1212(b), Aug. 9, 1989, 103 Stat. 527; amended Pub. L. 102–242, title II, § 222, Dec. 19, 1991, 105 Stat. 2306; Pub. L. 103–328, title I, § 110, Sept. 29, 1994, 108 Stat. 2364.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (b)(1)(A)(i) and (c)(3), was in the original ‘‘this Act’’ and was translated as reading ‘‘this title’’, meaning title VIII of Pub. L. 95–128, known as the Community Reinvestment Act of 1977, to reflect the probable intent of Congress. AMENDMENTS 1994—Subsec. (b)(1). Pub. L. 103–328, § 110(b), redesig- nated existing provisions as subpar. (A) and former sub- pars. (A) to (C) as cls. (i) to (iii), respectively, of sub- par. (A), inserted subpar. (A) heading, and added sub- par. (B). Subsecs. (d), (e). Pub. L. 103–328, § 110(a), added sub- secs. (d) and (e). 1991—Subsec. (a)(1). Pub. L. 102–242, § 222(b)(1), sub- stituted ‘‘financial supervisory’’ for ‘‘depository insti- tutions regulatory’’. Subsec. (b)(1)(A). Pub. L. 102–242, § 222(b)(2), sub- stituted ‘‘financial supervisory’’ for ‘‘depository insti- tutions regulatory’’ in two places. Subsec. (b)(1)(B). Pub. L. 102–242, § 222(a), inserted ‘‘and data’’ after ‘‘facts’’. Subsec. (c). Pub. L. 102–242, § 222(b)(3), substituted ‘‘fi- nancial supervisory’’ for ‘‘depository institutions regu- latory’’ wherever appearing. § 2907. Operation of branch facilities by minori- ties and women (a) In general In the case of any depository institution which donates, sells on favorable terms (as determined by the appropriate Federal financial supervisory agency), or makes available on a rent-free basis any branch of such institution which is located in any predominantly minority neighborhood to any minority depository institution or women’s depository institution, the amount of the con- tribution or the amount of the loss incurred in connection with such activity may be a factor in determining whether the depository institution is meeting the credit needs of the institution’s community for purposes of this chapter. (b) Definitions For purposes of this section— (1) Minority depository institution The term ‘‘minority institution’’ 1 means a depository institution (as defined in section 1813(c) of this title)— (A) more than 50 percent of the ownership or control of which is held by 1 or more mi- nority individuals; and (B) more than 50 percent of the net profit or loss of which accrues to 1 or more minor- ity individuals. (2) Women’s depository institution The term ‘‘women’s depository institution’’ means a depository institution (as defined in section 1813(c) of this title)— (A) more than 50 percent of the ownership or control of which is held by 1 or more women; (B) more than 50 percent of the net profit or loss of which accrues to 1 or more women; and (C) a significant percentage of senior man- agement positions of which are held by women. (3) Minority The term ‘‘minority’’ has the meaning given to such term by section 1204(c)(3) of the Finan- cial Institutions Reform, Recovery and En- forcement Act of 1989. (Pub. L. 95–128, title VIII, § 808, as added Pub. L. 102–233, title IV, § 402(b), Dec. 12, 1991, 105 Stat. 1775; amended Pub. L. 102–550, title IX, § 909(2), Oct. 28, 1992, 106 Stat. 3874.) Editorial Notes REFERENCES IN TEXT Section 1204(c)(3) of the Financial Institutions Re- form, Recovery and Enforcement Act of 1989, referred to in subsec. (b)(3), is section 1204(c)(3) of Pub. L. 101–73, which is set out as a note under section 1811 of this title. AMENDMENTS 1992—Subsec. (a). Pub. L. 102–550 substituted ‘‘may be a factor in determining whether the depository institu- tion is’’ for ‘‘shall be treated as’’. § 2908. Small bank regulatory relief (a) In general Except as provided in subsections (b) and (c), any regulated financial institution with aggre- gate assets of not more than $250,000,000 shall be subject to routine examination under this chap- ter— (1) not more than once every 60 months for an institution that has achieved a rating of ‘‘outstanding record of meeting community credit needs’’ at its most recent examination under section 2903 of this title; (2) not more than once every 48 months for an institution that has received a rating of