12 U.S.C. § 2903 — Financial institutions; evaluation

Page 1474 TITLE 12—BANKS AND BANKING § 2903 1 So in original. The period probably should be a semicolon. 2 See References in Text note below. insured by the Federal Deposit Insurance Corporation); (B) the Board of Governors of the Federal Reserve System with respect to State char- tered banks which are members of the Fed- eral Reserve System, bank holding compa- nies, and savings and loan holding compa- nies; (C) the Federal Deposit Insurance Corpora- tion with respect to State chartered banks and savings banks which are not members of the Federal Reserve System and the deposits of which are insured by the Corporation, and State savings associations (the deposits of which are insured by the Federal Deposit In- surance Corporation).1 (2) the term ‘‘regulated financial institu- tion’’ means an insured depository institution (as defined in section 1813 of this title); and (3) the term ‘‘application for a deposit facil- ity’’ means an application to the appropriate Federal financial supervisory agency other- wise required under Federal law or regulations thereunder for— (A) a charter for a national bank or Fed- eral savings and loan association; (B) deposit insurance in connection with a newly chartered State bank, savings bank, savings and loan association or similar insti- tution; (C) the establishment of a domestic branch or other facility with the ability to accept deposits of a regulated financial institution; (D) the relocation of the home office or a branch office of a regulated financial insti- tution; (E) the merger or consolidation with, or the acquisition of the assets, or the assump- tion of the liabilities of a regulated financial institution requiring approval under section 1828(c) of this title or under regulations issued under the authority of title IV 2 of the National Housing Act [12 U.S.C. 1724 et seq.]; or (F) the acquisition of shares in, or the as- sets of, a regulated financial institution re- quiring approval under section 1842 of this title or section 408(e) 2 of the National Hous- ing Act [12 U.S.C. 1730a(e)]. (4) A financial institution whose business predominately consists of serving the needs of military personnel who are not located within a defined geographic area may define its ‘‘en- tire community’’ to include its entire deposit customer base without regard to geographic proximity. (Pub. L. 95–128, title VIII, § 803, Oct. 12, 1977, 91 Stat. 1147; Pub. L. 95–630, title XV, § 1502, Nov. 10, 1978, 92 Stat. 3713; Pub. L. 101–73, title VII, § 744(q), title XII, § 1212(a), Aug. 9, 1989, 103 Stat. 440, 526; Pub. L. 111–203, title III, § 358(1), July 21, 2010, 124 Stat. 1548.) Editorial Notes REFERENCES IN TEXT The National Housing Act, referred to in par. (3)(E), (F), is act June 27, 1934, ch. 847, 48 Stat. 1246. Title IV of the National Housing Act which was classified gen- erally to subchapter IV (§ 1724 et seq.) of chapter 13 of this title, was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363. Section 408 of the National Housing Act, which was classified to section 1730a of this title, was also repealed by section 407 of Pub. L. 101–73. For complete classification of this Act to the Code, see section 1701 of this title and Tables. AMENDMENTS Par. (1)(A). Pub. L. 111–203, § 358(1)(A)(i), inserted ‘‘and Federal savings associations (the deposits of which are insured by the Federal Deposit Insurance Corporation)’’ after ‘‘banks’’. Par. (1)(B). Pub. L. 111–203, § 358(1)(A)(ii), substituted ‘‘, bank holding companies, and savings and loan hold- ing companies’’ for ‘‘and bank holding companies’’. Par. (1)(C). Pub. L. 111–203, § 358(1)(A)(iii), substituted ‘‘, and State savings associations (the deposits of which are insured by the Federal Deposit Insurance Corpora- tion).’’ for ‘‘; and’’. Par. (2). Pub. L. 111–203, § 358(1)(B), struck out par. (2) relating to the Director of the Office of Thrift Super- vision which read as follows: ‘‘section 1818 of this title, by the Director of the Office of Thrift Supervision, in the case of a savings association (the deposits of which are insured by the Federal Deposit Insurance Corpora- tion) and a savings and loan holding company;’’. 1989—Par. (1)(D). Pub. L. 101–73, § 744(q), directed the general amendment of par. (1)(D) but then set out ‘‘(2)’’ followed by the text of the new provisions. Prior to amendment, par. (1)(D) read as follows: ‘‘the Federal Home Loan Bank Board with respect to institutions the deposits of which are insured by the Federal Sav- ings and Loan Insurance Corporation and to savings and loan holding companies;’’. Par. (2). Pub. L. 101–73, § 1212(a), substituted ‘‘insured depository institution (as defined in section 1813 of this title)’’ for ‘‘insured bank as defined in section 1813 of this title or an insured institution as defined in section 401 of the National Housing Act’’. 1978—Par. (4). Pub. L. 95–630 added par. (4). 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. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–630 effective Nov. 10, 1978, see section 1505 of Pub. L. 95–630, set out as a note under section 27 of this title. § 2903. Financial institutions; evaluation (a) In general In connection with its examination of a finan- cial institution, the appropriate Federal finan- cial supervisory agency shall— (1) assess the institution’s record of meeting the credit needs of its entire community, in- cluding low- and moderate-income neighbor- hoods, consistent with the safe and sound op- eration of such institution; and (2) take such record into account in its eval- uation of an application for a deposit facility by such institution. (b) Majority-owned institutions In assessing and taking into account, under subsection (a), the record of a nonminority- owned and nonwomen-owned financial institu- tion, the appropriate Federal financial super- visory agency may consider as a factor capital investment, loan participation, and other ven- Page 1475 TITLE 12—BANKS AND BANKING § 2905 1 See References in Text note below. 1 So in original. tures undertaken by the institution in coopera- tion with minority- and women-owned financial institutions and low-income credit unions pro- vided that these activities help meet the credit needs of local communities in which such insti- tutions 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 certifi- cation is filed by such holding company under section 1843(l)(1)(C) 1 of this title, not all of the subsidiary insured depository in- stitutions 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 in- sured depository institutions Any insured depository institution acquired by a bank holding company during the 12- month period preceding the date of the sub- mission to the Board of the declaration and certification under section 1843(l)(1)(C) 1 of this title may be excluded for purposes of para- graph (1) during the 12-month period beginning on the date of such acquisition if— (A) the bank holding company has sub- mitted an affirmative plan to the appro- priate 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 commu- nity credit needs’’, or better, at the next ex- amination of the institution; and (B) the plan has been accepted by such agency. (3) Definitions For purposes of this subsection, the fol- lowing definitions shall apply: (A) Bank holding company; financial holding company The terms ‘‘bank holding company’’ and ‘‘financial holding company’’ have the mean- ings 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. (d) Low-cost education loans In assessing and taking into account, under subsection (a), the record of a financial institu- tion, the appropriate Federal financial super- visory agency shall consider, as a factor, low- cost education loans provided by the financial institution to low-income borrowers. (Pub. L. 95–128, title VIII, § 804, Oct. 12, 1977, 91 Stat. 1148; Pub. L. 102–550, title IX, § 909(1), Oct. 28, 1992, 106 Stat. 3874; Pub. L. 106–102, title I, § 103(b), Nov. 12, 1999, 113 Stat. 1350; Pub. L. 110–315, title X, § 1031(a), Aug. 14, 2008, 122 Stat. 3488.) Editorial Notes REFERENCES IN TEXT Section 1843(l)(1)(C) of this title, referred to in subsec. (c)(1)(A), (2), was redesignated section 1843(l)(1)(D) of this title by Pub. L. 111–203, title VI, § 606(a)(2), July 21, 2010, 124 Stat. 1607. AMENDMENTS 2008—Subsec. (d). Pub. L. 110–315 added subsec. (d). 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). Statutory Notes and Related Subsidiaries 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. REGULATIONS Pub. L. 110–315, title X, § 1031(b), Aug. 14, 2008, 122 Stat. 3488, provided that: ‘‘Not later than 1 year after the date of enactment of this Act [Aug. 14, 2008], each appropriate Federal financial supervisory agency shall issue rules in final form to implement section 804(d) of the Community Reinvestment Act of 1977 [12 U.S.C. 2903(d)], as added by this section.’’ § 2904. Report to Congress Each appropriate Federal financial super- visory agency shall include in its annual report to the Congress a section outlining the actions it has taken to carry out its responsibilities under this chapter. (Pub. L. 95–128, title VIII, § 805, Oct. 12, 1977, 91 Stat. 1148.) § 2905. Regulations Regulations to carry out the purposes of this chapter shall be published by each appropriate Federal financial supervisory agency, except that the Comptroller of the Currency shall pre- scribe regulations applicable to savings associa- tions and the Board of Governors shall prescribe regulations applicable to insured State member banks, bank holding companies and savings and loan holding companies,,1 and shall take effect no later than 390 days after October 12, 1977. (Pub. L. 95–128, title VIII, § 806, Oct. 12, 1977, 91 Stat. 1148; Pub. L. 111–203, title III, § 358(2), July 21, 2010, 124 Stat. 1548.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203 inserted ‘‘, except that the Comptroller of the Currency shall prescribe regulations