For purposes of this part,
the following definitions apply:
Affiliate means any company that controls, is controlled by, or is under common
control with another company. The term “control” has the
meaning given to that term in 12 U.S.C. 1841(a)(2), as implemented
by the Board in 12 CFR part 225, and a company is under common control
with another company if both companies are directly or indirectly
controlled by the same company.
Affordable housing means activities described in section 228.13(b).
Area median income means:
(1) The median family income for the MSA
(as defined in this section), if an individual, family, household,
or census tract is located in an MSA that has not been subdivided
into metropolitan divisions, or for the metropolitan division, if
an individual, family, household, or census tract is located in an
MSA that has been subdivided into metropolitan divisions; or
(2) The statewide nonmetropolitan
median family income, if an individual, family, household, or census
tract is located in a nonmetropolitan area.
Assets means a bank’s total assets as reported
in Schedule RC of the Consolidated Reports of Condition and Income
as filed under 12 U.S.C. 161, 324, 1464, or 1817, as applicable (Call
Report), or Schedule RAL of the Report of Assets and Liabilities of
U.S. Branches and Agencies of Foreign Banks as filed under 12 U.S.C.
1817(a), 3102(b), or 3105(c)(2), as applicable.
Bank means a state member bank as that term is defined in
section 3(d)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1813(d)(2)),
except as provided in section 228.11(c)(3), and includes an uninsured
state branch (other than a limited branch) of a foreign bank described
in section 228.11(c)(2).
Branch means a
staffed banking facility, whether shared or unshared, that the Board
approved or authorized as a branch and that is open to, and accepts
deposits from, the general public.
Census tract means a census tract delineated by the U.S. Census Bureau.
Closed-end home mortgage loan has the same meaning
given to the term “closed-end mortgage loan” in 12 CFR
1003.2, excluding loan transactions set forth in 12 CFR 1003.3(c)(1)
through (10) and (13) and multifamily loans as defined in this section.
Combination of loan dollars and loan count means, when applied to a particular ratio, the average of:
(1) The ratio calculated using loans measured
in dollar volume; and
(2) The ratio calculated using loans measured in number of loans.
Community development means activities
described in section 228.13(b) through (l).
Community Development Financial Institution (CDFI) means an
entity that satisfies the definition in section 103(5)(A) of the Community
Development Banking and Financial Institutions Act of 1994 (12 U.S.C.
4702(5)) and is certified by the U.S. Department of the Treasury’s
Community Development Financial Institutions Fund as meeting the requirements
set forth in 12 CFR 1805.201(b).
Community development
investment means a lawful investment, including a legally binding
commitment to invest, that is reported on Schedule RC-L of the Call
Report or on Schedule L of the Report of Assets and Liabilities of
U.S. Branches and Agencies of Foreign Banks, as applicable; deposit;
membership share; grant; or monetary or in-kind donation that supports
community development, as described in section 228.13.
Community development loan means a loan, including
a legally binding commitment to extend credit, such as a standby letter
of credit, that supports community development, as described in section
228.13. A community development loan does not include any home mortgage
loan considered under the Retail Lending Test in section 228.22, with
the exception of one-to-four family home mortgage loans for rental
housing with affordable rents in nonmetropolitan areas under section
228.13(b)(3).
Community development services means the performance of volunteer services by a bank’s or
its affiliate’s board members or employees, performed on behalf
of the bank, where those services:
(1) Support community development, as described
in section 228.13; and
(2) Are related to the provision of financial services, which include
credit, deposit, and other personal and business financial services,
or services that reflect a board member’s or an employee’s
expertise at the bank or affiliate, such as human resources, information
technology, and legal services.
Consumer
loan means a loan to one or more individuals for household, family,
or other personal expenditures and that is one of the following types
of loans:
(1) Automobile loan, as reported in Schedule RC-C of the Call Report;
(2) Credit card loan, as reported
as “credit card” in Schedule RC-C of the Call Report;
(3) Other revolving
credit plan, as reported in Schedule RC-C of the Call Report;
and
(4) Other consumer
loan, as reported in Schedule RC-C of the Call Report.
County means any county, county equivalent,
or statistically equivalent entity as used by the U.S. Census Bureau
pursuant to title 13 of the U.S. Code.
Deposit
location means:
(1) For banks that collect, maintain, and
report deposits data as provided in section 228.42, the address on
file with the bank for purposes of the Customer Identification Program
required by 31 CFR 1020.220 or another documented address at which
the depositor resides or is located.
(2) For banks that do not collect, maintain,
and report deposits data as provided in section 228.42, the county
of the bank facility to which the deposits are assigned in the FDIC’s
Summary of Deposits.
Depository institution means any institution subject to the CRA, as described in section
228.11 and 12 CFR 25.11 and 345.11.
Deposits has the following meanings:
(1) For banks that collect, maintain, and
report deposits data as provided in section 228.42, deposits means deposits in domestic offices of individuals, partnerships,
and corporations, and of commercial banks and other depository institutions
in the United States as defined in Schedule RC-E of the Call Report;
deposits does not include U.S. government deposits, state and local
government deposits, domestically held deposits of foreign governments
or official institutions, or domestically held deposits of foreign
banks or other foreign financial institutions; and
(2) For banks that do not collect, maintain,
and report deposits data as provided in section 228.42, deposits means a bank’s deposits as reported in the FDIC’s Summary
of Deposits as required under 12 CFR 304.3(c).
Digital delivery system means a channel through
which banks offer retail banking services electronically, such as
online banking or mobile banking.
Distressed
or underserved nonmetropolitan middle-income census tract means
a census tract publicly designated as such by the Board, the Federal
Deposit Insurance Corporation (FDIC), and the Office of the Comptroller
of the Currency (OCC), based on the criteria in paragraphs (1) and
(2) of this definition, compiled in a list, and published annually
by the Federal Financial Institutions Examination Council (FFIEC).
(1) A nonmetropolitan middle-income census
tract is designated as distressed if it is in a county that meets
one or more of the following criteria:
(i) An unemployment
rate of at least 1.5 times the national average;
(ii) A poverty rate of 20 percent or
more; or
(iii) A
population loss of 10 percent or more between the previous and most
recent decennial census or a net population loss of five percent or
more over the five-year period preceding the most recent census.
(2) A nonmetropolitan
middle-income census tract is designated as underserved if it meets
the criteria for population size, density, and dispersion that indicate
the area’s population is sufficiently small, thin, and distant
from a population center that the census tract is likely to have difficulty
financing the fixed costs of meeting essential community needs. The
criteria for these designations are based on the Urban Influence Codes
established by the U.S. Department of Agriculture’s Economic
Research Service numbered “7,” “10,” “11,”
or “12.”
Evaluation period means the period, generally in calendar years, during which a bank
conducted the activities that the Board evaluates in a CRA examination,
in accordance with the Board’s guidelines and procedures.
Facility-based assessment area means a geographic
area delineated pursuant to section 228.16.
High Opportunity Area means an area identified by the Federal
Housing Finance Agency for purposes of the Duty to Serve Underserved
Markets regulation in 12 CFR part 1282, subpart C.
Home mortgage loan means a closed-end home mortgage loan or
an open-end home mortgage loan as these terms are defined in this
section.
Income level includes:
(1) Low-income, which means:
(i) For individuals, families, or households, income that is less
than 50 percent of the area median income; or
(ii) For a census tract, a median family
income that is less than 50 percent of the area median income.
(2) Moderate-income, which means:
(i) For individuals, families, or households,
income that is at least 50 percent and less than 80 percent of the
area median income; or
(ii) For a census tract, a median family income that is at least
50 percent and less than 80 percent of the area median income.
(3) Middle-income, which means:
(i) For individuals, families, or households,
income that is at least 80 percent and less than 120 percent of the
area median income; or
(ii) For a census tract, a median family income that is at least
80 percent and less than 120 percent of the area median income.
(4) Upper-income, which means:
(i) For individuals, families, or households,
income that is 120 percent or more of the area median income; or
(ii) For a census
tract, a median family income that is 120 percent or more of the area
median income.
Intermediate
bank means a bank, excluding a bank designated as a limited purpose
bank pursuant to section 228.26, that had assets of at least $600
million as of December 31 in both of the prior two calendar years
and less than $2 billion as of December 31 in either of the prior
two calendar years. The Board adjusts and publishes the figures in
this definition annually, based on the year-to-year change in the
average of the Consumer Price Index for Urban Wage Earners and Clerical
Workers, not seasonally adjusted, for each 12-month period ending
in November, with rounding to the nearest million.
Large bank means a bank, excluding a bank designated as a
limited purpose bank pursuant to section 228.26, that had assets of
at least $2 billion as of December 31 in both of the prior two calendar
years. The Board adjusts and publishes the figure in this definition
annually, based on the year-to-year change in the average of the Consumer
Price Index for Urban Wage Earners and Clerical Workers, not seasonally
adjusted, for each 12-month period ending in November, with rounding
to the nearest million.
Large depository institution means any depository institution, excluding depository institutions
designated as limited purpose banks or savings associations pursuant
to 12 CFR 25.26(a) and depository institutions designated as limited
purpose banks pursuant to section 228.26(a) or 12 CFR 345.26(a), that
meets the asset size threshold of a large bank.
Limited purpose bank means a bank that is not in the business
of extending closed-end home mortgage loans, small business loans,
small farm loans, or automobile loans evaluated under section 228.22
to retail customers, except on an incidental and accommodation basis,
and for which a designation as a limited purpose bank is in effect,
pursuant to section 228.26.
Loan location. A loan is located as follows:
(1) A consumer loan is located in the census
tract where the borrower resides at the time that the borrower submits
the loan application;
(2) A home mortgage loan or a multifamily loan is located in the
census tract where the property securing the loan is located; and
(3) A small business loan
or small farm loan is located in the census tract where the main business
facility or farm is located or where the borrower will otherwise apply
the loan proceeds, as indicated by the borrower.
Low-cost education loan means any private education
loan, as defined in section 140(a)(7) of the Truth in Lending Act
(15 U.S.C. 1650(a)(8)) (including a loan under a state or local education
loan program), originated by the bank for a student at an “institution
of higher education,” as generally defined in sections 101 and
102 of the Higher Education Act of 1965 (20 U.S.C. 1001 and 1002),
implemented in 34 CFR part 600, with interest rates and fees no greater
than those of comparable education loans offered directly by the U.S.
Department of Education. Such rates and fees are specified in section
455 of the Higher Education Act of 1965 (20 U.S.C. 1087e).
Low-income credit union (LICU) has the same meaning
given to that term in 12 CFR 701.34.
Low-Income
Housing Tax Credit (LIHTC) means a federal tax credit for housing
persons of low income pursuant to section 42 of the Internal Revenue
Code of 1986 (26 U.S.C. 42).
Major product line means a product line that the Board evaluates in a particular Retail
Lending Test Area, pursuant to section 228.22(d)(2) and paragraphs
II.b.1 and II.b.2 of appendix A to this part.
Majority automobile lender means a bank for which more than 50
percent of its home mortgage loans, multifamily loans, small business
loans, small farm loans, and automobile loans were automobile loans,
as determined pursuant to paragraph II.b.3 of appendix A to this part.
Metropolitan area means any MSA.
Metropolitan division has the same meaning as
that term is defined by the Director of the Office of Management and
Budget.
Military bank means a bank whose
business predominantly consists of serving the needs of military personnel
who serve or have served in the U.S. Armed Forces (including the U.S.
Air Force, U.S. Army, U.S. Coast Guard, U.S. Marine Corps, U.S. Navy,
and U.S. Space Force) or their dependents. A bank whose business predominantly
consists of serving the needs of military personnel or their dependents
means a bank whose most important customer group is military personnel
or their dependents.
Minority depository institution
(MDI) means:
(1) For purposes of activities conducted
pursuant to 12 U.S.C. 2907(a), “minority depository institution”
as defined in 12 U.S.C. 2907(b)(1); and
(2) For all other purposes:
(i) “Minority
depository institution” as defined in 12 U.S.C. 2907(b)(1);
(ii) “Minority
depository institution” as defined in section 308 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA)
(12 U.S.C. 1463 note); or
(iii) A depository institution considered
to be a minority depository institution by the appropriate federal
banking agency. For purposes of this paragraph (2)(iii), “appropriate
federal banking agency” has the meaning given to it in 12 U.S.C.
1813(q).
Mission-driven
nonprofit organization means an organization described in section
501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3))
and exempt from taxation under section 501(a) of the Internal Revenue
Code that benefits or serves primarily low- or moderate-income individuals
or communities, small businesses, or small farms.
MSA means a metropolitan statistical area delineated by the
Director of the Office of Management and Budget, pursuant to 44 U.S.C.
3504(e)(3) and (10), 31 U.S.C. 1104(d), and Executive Order 10253
(June 11, 1951).
Multifamily loan means
an extension of credit that is secured by a lien on a “multifamily
dwelling” as defined in 12 CFR 1003.2.
Multistate MSA means an MSA that crosses a state boundary.
Nationwide area means the entire United States
and its territories.
Native land area means:
(1) All land within the limits of any Indian
reservation under the jurisdiction of the United States, as described
in 18 U.S.C. 1151(a);
(2) All dependent Indian communities within the borders of the United
States whether within the original or subsequently acquired territory
thereof, and whether within or without the limits of a state, as described
in 18 U.S.C. 1151(b);
(3) All Indian allotments, the Indian titles to which have not been
extinguished, including rights-of-way running through the same, as
defined in 18 U.S.C. 1151(c);
(4) Any land held in trust by the United
States for tribes or Native Americans or tribally-held restricted
fee land;
(5) Reservations
established by a state government for a tribe or tribes recognized
by the state;
(6) Any
Native village, as defined in 43 U.S.C. 1602(c), in Alaska;
(7) Lands that have the status
of Hawaiian Home Lands as defined in section 204 of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108), as amended;
(8) Areas defined by the U.S. Census Bureau
as Alaska Native Village Statistical Areas, Oklahoma Tribal Statistical
Areas, Tribal-Designated Statistical Areas, or American Indian Joint-Use
Areas; and
(9) Land areas
of state-recognized Indian tribes and heritage groups that are defined
and recognized by individual states and included in the U.S. Census
Bureau’s annual Boundary and Annexation Survey.
New Markets Tax Credit (NMTC) means a federal
tax credit pursuant to section 45D of the Internal Revenue Code of
1986 (26 U.S.C. 45D).
Nonmetropolitan area means any area that is not located in an MSA.
Open-end home mortgage loan has the same meaning as given
to the term “open-end line of credit” in 12 CFR 1003.2,
excluding loan transactions set forth in 12 CFR 1003.3(c)(1) through
(10) and (13) and multifamily loans as defined in this section.
Operations subsidiary means an organization
designed to serve, in effect, as a separately incorporated department
of the bank, performing, at locations at which the bank is authorized
to engage in business, functions that the bank is empowered to perform
directly.
Other delivery system means a
channel, other than branches, remote services facilities, or digital
delivery systems, through which banks offer retail banking services.
Outside retail lending area means the geographic
area delineated pursuant to section 228.18.
Persistent
poverty county means a county that has had poverty rates of 20
percent or more for 30 years, as publicly designated by the Board,
FDIC, and OCC, compiled in a list, and published annually by the FFIEC.
Product line means a bank’s loans in
one of the following, separate categories in a particular Retail Lending
Test Area:
(1) Closed-end home mortgage
loans;
(2) Small business
loans;
(3) Small farm
loans; and
(4) Automobile
loans, if a bank is a majority automobile lender or opts to have its
automobile loans evaluated pursuant to section 228.22.
Remote service facility means an automated,
virtually staffed, or unstaffed banking facility owned or operated
by, or operated exclusively for, a bank, such as an automated teller
machine (ATM), interactive teller machine, cash dispensing machine,
or other remote electronic facility, that is open to the general public
and at which deposits are accepted, cash dispersed, or money lent.
Reported loan means:
(1) A home mortgage loan or a multifamily
loan reported by a bank pursuant to the Home Mortgage Disclosure Act,
as implemented by 12 CFR part 1003; or
(2) A small business loan or a small farm
loan reported by a bank pursuant to section 228.42.
Retail banking products means credit and deposit
products or programs that facilitate a lending or depository relationship
between the bank and consumers, small businesses, or small farms.
Retail banking services means retail financial
services provided by a bank to consumers, small businesses, or small
farms and include a bank’s systems for delivering retail financial
services.
Retail lending assessment area means a geographic area delineated pursuant to section 228.17.
Retail Lending Test Area means a facility-based
assessment area, a retail lending assessment area, or an outside retail
lending area.
Small bank means a bank, excluding
a bank designated as a limited purpose bank pursuant to section 228.26,
that had assets of less than $600 million as of December 31 in either
of the prior two calendar years. The Board adjusts and publishes the
dollar figure in this definition annually based on the year-to-year
change in the average of the Consumer Price Index for Urban Wage Earners
and Clerical Workers, not seasonally adjusted, for each 12-month period
ending in November, with rounding to the nearest million.
Small business means a business, other than a farm,
that had gross annual revenues for its preceding fiscal year of $5
million or less.
Small business loan means,
notwithstanding the definition of “small business” in
this section, a loan included in “loans to small businesses”
as reported in Schedule RC-C of the Call Report.
Small farm means a farm that had gross annual revenues for
its preceding fiscal year of $5 million or less.
Small farm loan means, notwithstanding the definition of “small
farm” in this section, a loan included in “loans to small
farms” as reported in Schedule RC-C of the Call Report.
State means a U.S. state or territory, and includes
the District of Columbia.
Targeted census tract means:
(1) A low-income census
tract or a moderate-income census tract; or
(2) A distressed or underserved nonmetropolitan
middle-income census tract.
Tribal
government means the recognized governing body of any Indian or
Alaska Native tribe, band, nation, pueblo, village, community, component
band, or component reservation, individually identified (including
parenthetically) in the list most recently published pursuant to section
104 of the Federally Recognized Indian Tribe List Act of 1994 (25
U.S.C. 5131).
Women’s depository institution
(WDI) means “women’s depository institution”
as defined in 12 U.S.C. 2907(b)(2).
