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U.S. Code as of:
01/19/04
Section 2903. Financial institutions; evaluation
(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) of
this section, 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 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 certification is filed by such holding
company under section 1843(l)(1)(C) of this title, 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 1843(l)(1)(C) of this title may be 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 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.
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