N.Y. Comp. Codes R. & Regs. tit. 3 § 76.11

Current through Register Vol. 46, No. 53, December 31, 2024

Section 76.11 - Community development test for wholesale or limited purpose banking institutions

(a) Scope of test. The Banking Department assesses a wholesale or limited purpose banking institution'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 banking institution. In order to receive a designation as a wholesale or limited purpose banking institution, a banking institution shall file a request, in writing, with the appropriate Federal regulatory authority in compliance with its rules and regulations regarding such designations. If the appropriate Federal regulatory authority approves the designation, it remains in effect until the banking institution requests revocation of the designation or until one year after the appropriate Federal regulatory authority notifies the banking institution that the designation has been revoked on its own initiative.

(c) Performance criteria. The Banking Department evaluates the community development performance of a wholesale or limited purpose banking institution pursuant to criteria which may include the following:

(1) the number and amount of community development loans (including originations and purchases of loans and other community development loan data provided by the banking institution, 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 banking institution's responsiveness to credit and community development needs.

(d) Indirect activities. At a banking institution's option, the Banking Department will consider in its community development performance assessment:

(1) qualified investments or community development services provided by an affiliate of the banking institution, 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 set forth in section 76.8(c) and (d) of this Part.

(e) Benefit to assessment area(s). Benefits to assessment area(s) are set forth below:

(1) Benefit inside assessment area(s). The Banking Department considers all qualified investments, community development loans, and community development services that benefit areas within the banking institution's assessment area(s) or a broader statewide or regional area that includes the banking institution's assessment area(s).

(2) Benefit outside assessment area(s). The Banking Department considers the qualified investments, community development loans, and community development services that benefit areas outside the banking institution's assessment area(s), but within New York State, if the banking institution has adequately addressed the needs of its assessment area(s).

N.Y. Comp. Codes R. & Regs. Tit. 3 § 76.11