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6500 - FDIC Consumer Protection
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HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1977—TITLE VIII (COMMUNITY
REINVESTMENT)
AN ACT
To amend certain Federal laws pertaining to community
development, housing, and related programs.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled.
* * * * *
TITLE VIII—COMMUNITY REINVESTMENT
SEC. 801. This title may be cited as the "Community
Reinvestment Act of 1977".
[Codified to 12 U.S.C. 2901 note]
[Source: Section 801 of title VIII of the Act of October 12, 1977
(Pub. L. No. 95--128; 91 Stat. 1147), effective October 12,
1977]
SEC. 802. (a) The Congress finds that--
(1) regulated financial institutions are required by law to
demonstrate that their deposit facilities serve the convenience and
needs of the communities in which they are chartered to do business;
(2) the convenience and needs of communities include the need for
credit services as well as deposit services; and
(3) regulated financial institutions have continuing and
affirmative obligation to help meet the credit needs of the local
communities in which they are chartered.
(b) It is the purpose of this title to require each appropriate
Federal financial supervisory agency to use its authority when
examining financial institutions, to encourage such institutions to
help meet the credit needs of the local communities in which they are
chartered consistent with the safe and sound operation of such
institutions.
[Codified to 12 U.S.C. 2901]
[Source: Section 802 of title VIII of the Act of October 12, 1977
(Pub. L. No. 95--128; 91 Stat. 1147), effective October 12,
1977]
SEC. 803. For the purpose of this title--
(1) the term "appropriate Federal financial supervisory
agency" means--
(A) the Comptroller of the Currency with respect to national
banks;
(B) the Board of Governors of the Federal Reserve System with
respect to State chartered banks which are members of the Federal
Reserve System and bank holding companies;
(C) the Federal Deposit Insurance Corporation 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
(D)(2) section 8 of the
Federal Deposit Insurance Act, 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 Corporation) and a
savings and loan holding company; *
(2) the term "regulated financial institution" means an
insured depository institution (as defined in
section 3 of the Federal
Deposit Insurance Act);
(3) the term "application for a deposit facility" means an
application to the appropriate Federal financial supervisory agency
otherwise required under Federal law or regulations thereunder
for--
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(A) a charter for a national bank or Federal savings and loan
association;
(B) deposit insurance in connection with a newly chartered State
bank, savings bank, savings and loan association or similar
institution;
(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 institution;
(E) the merger or consolidation with, or the acquisition of the
assets, or the assumption of the liabilities of a regulated financial
institution requiring approval under section 18(c) of the Federal
Deposit Insurance Act or under regulations issued under the authority
of title IV of the National Housing Act; or
(F) the acquisition of shares in, or the assets of, a regulated
financial institution requiring approval under
section 3 of the Bank Holding
Company Act of 1956 or section 408(e) of the National Housing Act.
(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 "entire community" to
include its entire deposit customer base without regard to geographic
proximity.
[Codified to 12 U.S.C. 2902]
[Source: Section 803 of title VIII of the Act of October 12, 1977
(Pub. L. No. 95--128; 91 Stat. 1147), effective October 12, 1977; as
amended by section 1502 of title XV of the Act of November 10, 1978
(Pub. L. No. 95--630; 92 Stat. 3713), effective November 10, 1978; and
sections 744(q) of title VII and 1212(a) of title XII of the Act of
August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 440 and 526,
respectively), effective August 9, 1989]
SEC. 804. (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), 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 4 of the Bank Holding
Company Act of 1956 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 4(l)(1)(C) of the Bank
Holding Company Act of 1956, 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 4(l)(1)(C) of the Bank Holding Company Act of 1956 may
be
{{8-31-00 p.6988.27}}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 2 of the Bank Holding
Company Act of 1956.
(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 3(c) of the Federal
Deposit Insurance Act.
[Codified to 12 U.S.C. 2903]
[Source: Section 804 of title VIII of the Act of October 12, 1977
(Pub. L. No. 95--128; 91 Stat. 1148), effective October 12, 1977; as
amended by section 909(1) of title IX of the Act of October 28, 1992
(Pub. L. No. 102--550; 106 Stat. 3874), effective October 28, 1992;
section 103(b) of title I of the Act of November 12, 1999 (Pub. L. No.
106--102; 113 Stat. 1351), effective March 12, 2000]
SEC. 805. Each appropriate Federal financial supervisory 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
title.
[Codified to 12 U.S.C. 2904]
[Source: Section 805 of title VIII of the Act of October 12, 1977
(Pub. L. No. 95--128; 91 Stat. 1148), effective October 12,
1977]
SEC. 806. Regulations to carry out the purposes of this title shall
be published by each appropriate Federal financial supervisory agency
and shall take effect no later than 390 days after the date of
enactment of this title.
[Codified to 12 U.S.C. 2905]
[Source: Section 806 of title VIII of the Act of October 12, 1977
(Pub. L. No. 95--128; 91 Stat. 1148), effective October 12,
1977]
SEC. 807. WRITTEN EVALUATIONS.
(a) REQUIRED.--
(1) IN GENERAL.--Upon the conclusion of each examination
of an insured depository institution under section 804, the appropriate
Federal financial supervisory agency shall prepare a written evaluation
of the institution's record of meeting the credit needs of its entire
community, 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 evaluation shall--
(i) state the appropriate Federal financial supervisory agency's
conclusions for each assessment factor identified in the regulations
prescribed by the Federal financial supervisory agencies to implement
this Act;
(ii) discuss the facts and data supporting such conclusions;
and
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(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 presented
separately for each metropolitan area in which a regulated depository
institution maintains one or more domestic branch offices.
(2) ASSIGNED RATING.--The institution's rating referred
to in paragraph (1)(C) shall be 1 of the following:
(A) "Outstanding record of meeting community credit needs."
(B) "Satisfactory record of meeting community credit
needs."
(C) "Needs to improve record of meeting community credit
needs."
(D) "Substantial noncompliance in meeting 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 evaluation shall contain all references that
identify any customer of the institution, any employee or officer of
the institution, or any person or organization that has provided
information in confidence to a Federal or State financial supervisory
agency.
(2) Topics not suitable for disclosure.--The confidential
section shall also contain any statements obtained or made by the
appropriate 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 institution or the public.
(3) DISCLOSURE TO DEPOSITORY INSTITUTION.--The
confidential section may be disclosed, in whole or in part, to the
institution, if the appropriate Federal financial supervisory agency
determines that such disclosure will promote the objectives of this
Act. However, disclosure under this paragraph shall not identify a
person or organization that has provided information in confidence to a
Federal or State financial supervisory agency.
(d) INSTITUTIONS WITH INTERSTATE BRANCHES.--
(1) STATE-BY-STATE EVALUATION.--In the case of a
regulated financial institution that maintains domestic branches in 2
or more States, the appropriate Federal financial supervisory agency
shall prepare--
(A) a written evaluation of the entire institution's record of
performance under this title, 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 institution's
record of performance within such State under this title, as required
by subsections (a), (b), and (c).
(2) MULTISTATE METROPOLITAN AREAS.--In the case of a
regulated financial institution that maintains domestic branches in 2
or more States within a multistate metropolitan area, the appropriate
Federal financial supervisory agency shall prepare a separate written
evaluation of the institution's record of performance within such
metropolitan area under this title, 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
nonmetropolitan area; and
(B) describe how the Federal financial supervisory agency has
performed the examination of the institution, including a list of the
individual branches examined.
(e) DEFINITIONS.--For purposes of this section the
following definitions shall apply:
(1) DOMESTIC BRANCH.--The term "domestic branch"
means any branch office or other facility of a regulated financial
institution that accepts deposits, located in any State.
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(2) METROPOLITAN AREA.--The term "metropolitan
area" means any primary metropolitan statistical area, metropolitan
statistical area, or consolidated metropolitan 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 3 of the Federal
Deposit Insurance Act.
[Codified to 12 U.S.C. 2906]
[Source: Section 807 of title VIII of the Act of October 12, 1977
(Pub. L. No. 95--128; 91 Stat. 1147), effective October 12, 1977, as
added by section 1212(b) of title XII of the Act of August 9, 1989
(Pub. L. No. 101--73; 103 Stat. 526), effective August 9, 1989; amended
by section 222 of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2306), effective December 19, 1991; section 110 of
title I of the Act of September 29, 1994 (Pub. L. No. 103--328; 108
Stat. 2364), effective September 29, 1994]
SEC. 808. OPERATION OF BRANCH FACILITIES BY MINORITIES 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
contribution 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 title.
(b) DEFINITIONS.--For purposes of this section--
(1) MINORITY DEPOSITORY INSTITUTION.--The term
"minority institution" means a depository institution (as defined
in section 3(c) of the Federal
Deposit Insurance Act)--
(A) more than 50 percent of the ownership or control of which is
held by 1 or more minority individuals; and
(B) more than 50 percent of the net profit or loss of which
accrues to 1 or more minority individuals.
(2) WOMEN'S DEPOSITORY INSTITUTION.--The term
"women's depository institution" means a depository institution
(as defined in section 3(c) of
the Federal Deposit Insurance Act)--
(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 management 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 Financial Institutions
Reform, Recovery and Enforcement Act of 1989.
[Codified to 12 U.S.C. 2907]
[Source: Section 808 of title VIII of the Act of October 12, 1977
(Pub. L. No. 95--128; 91 Stat. 1147), effective October 12, 1977, as
added by section 402(b) of title IV of the Act of December 12, 1991
(Pub. L. No. 102--233; 105 Stat. 1775), effective December 12, 1991; as
amended by section 909(2) of title IX of the Act of October 28, 1992
(Pub. L. No. 102--550; 106 Stat. 3874), effective October 28,
1992]
SEC. 809. SMALL BANK REGULATORY RELIEF.
(a) IN GENERAL.--Except as provided in subsections (b) and
(c), any regulated financial institution with aggregate assets of not
more than $250,000,000 shall be subject to routine examination under
this title--
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(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 804;
(2) not more than once every 48 months for an institution that
has received a rating of "satisfactory record of meeting community
credit needs" at its most recent examination under section 804; and
(3) as deemed necessary by the appropriate Federal financial
supervisory agency, for an institution that has received a rating of
less than "satisfactory record of meeting community credit needs"
at its most recent examination under section 804.
(b) No Exception From CRA Examinations in Connection With
Applications for Deposit Facilities.--A regulated financial
institution described in subsection (a) shall remain subject to
examination under this title in connection with an application for a
deposit facility.
(c) DISCRETION.--A regulated financial institution
described in subsection (a) may be subject to more frequent or less
frequent examinations for reasonable cause under such circumstances as
may be determined by the appropriate Federal financial supervisory
agency.
[Codified to 12 U.S.C. 2908]
[Source: Section 809 of title VIII of the Act of October 12, 1977
(Pub. L. No. 95-128; 91 Stat. 1147), effective October 12, 1997, as
added by section 712 of the Act of November 12, 1997 (Pub. L. No.
106-102; 113 Stat. 1469), effective November 12, 1999]
[The page following this is 6989.]
{{4-28-00 p.6989}}
COMPETITIVE EQUALITY BANKING ACT OF 1987
* * * * *
TITLE XII—MISCELLANEOUS PROVISIONS
* * * * *
SEC. 1204. ADJUSTABLE RATE MORTGAGE CAPS.
(a) IN GENERAL.--Any adjustable rate mortgage loan
originated by a creditor shall include a limitation on the maximum
interest rate that may apply during the term of the mortgage loan.
(b) REGULATIONS.--The Board of Governors of the Federal
Reserve System shall prescribe regulations to carry out the purposes of
this section.
(c) ENFORCEMENT.--Any violation of this section shall be
treated as a violation of the Truth in Lending Act and shall be subject
to administrative enforcement under section 108 or civil damages under
section 130 of such Act, or both.
(d) DEFINITIONS.--For the purpose of this section--
(1) the term "creditor" means a person who regularly
extends credit for personal, family, or household purposes; and
(2) the term "adjustable rate mortgage loan" means any loan
secured by a lien on a one- to four-family dwelling unit, including a
condominium unit, cooperative housing unit, or mobile home, where the
loan is made pursuant to an agreement under which the creditor may,
from time to time, adjust the rate of interest.
(e) EFFECTIVE DATE.--This section shall take effect upon
the expiration of 120 days after the date of enactment of this Act.
[Codified to 12 U.S.C. 3806]
[Source: Section 1204 of title XII of the Act of August 10, 1987
(Pub. L. No. 100--86; 101 Stat. 662), effective December 8, 1987]
[The page following this is 6991.]
*Editor's Note: So in statute as enacted. Should probably read:
"(D) the Director of Office of Thrift Supervision, in the case of a
savings association (the deposits of which are insured by the Federal
Deposit Insurance Corporation) and a savings holding company;" Go Back to Text
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