---
kind: "range"
citation: "12 U.S.C. §§ 2901–2908"
title: "12"
from: "2901"
to: "2908"
count: 8
release: "119-102"
url: "https://uscodex.org/usc/12/2901..2908"
---

# §2901. Congressional findings and statement of purpose

- (a) The Congress finds that—
  - (1) [regulated financial institutions](/usc/12/2902.md?p=2) are required by law to demonstrate that their [deposit](/usc/12/5301.md?p=18-A) 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](/usc/12/5481.md?p=7) services as well as [deposit](/usc/12/5301.md?p=18-A) services; and
  - (3) [regulated financial institutions](/usc/12/2902.md?p=2) have continuing and affirmative obligation to help meet the [credit](/usc/12/5481.md?p=7) needs of the local communities in which they are chartered.
- (b) It is the purpose of this chapter to require each [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1) to use its authority when examining [financial institutions](/usc/12/1715k.md?p=h-1-C), to encourage such institutions to help meet the [credit](/usc/12/5481.md?p=7) needs of the local communities in which they are chartered consistent with the safe and sound operation of such institutions.

# §2902. Definitions


For the purposes of this chapter—

- (1) the term “appropriate Federal financial supervisory agency” means—
  - (A) the Comptroller of the Currency with respect to [national banks](/usc/12/221a.md?p=a) and [Federal savings associations](/usc/12/1462.md?p=3) (the [deposits](/usc/12/5301.md?p=18-A) of which are insured by the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2));
  - (B) the [Board](/usc/12/221a.md?p=a) of Governors of the Federal Reserve System with respect to [State](/usc/12/1707.md?p=d) chartered [banks](/usc/12/221a.md?p=a) which are [members](/usc/12/1426a.md?p=g-1) of the Federal Reserve System, [bank holding companies](/usc/12/1813.md?p=w-2), and [savings and loan holding companies](/usc/12/1813.md?p=w-3);
  - (C) the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2) with respect to [State](/usc/12/1707.md?p=d) chartered [banks](/usc/12/221a.md?p=a) and savings [banks](/usc/12/221a.md?p=a) which are not [members](/usc/12/1426a.md?p=g-1) of the Federal Reserve System and the [deposits](/usc/12/5301.md?p=18-A) of which are insured by the [Corporation](/usc/12/2277a.md?p=2), and [State savings associations](/usc/12/1861.md?p=b-9) (the [deposits](/usc/12/5301.md?p=18-A) of which are insured by the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2)).[^1]
- (2) the term “regulated financial institution” means an [insured depository institution](/usc/12/24a.md?p=g-2) (as defined in [section 1813 of this title](/usc/12/1813.md)); and
- (3) the term “application for a deposit facility” means an application to the [appropriate Federal financial supervisory agency](#1) otherwise required under Federal law or regulations thereunder for—
  - (A) a charter for a [national bank](/usc/12/221a.md?p=a) or Federal savings and loan [association](/usc/12/1828.md?p=s-4-E-i);
  - (B) [deposit](/usc/12/5301.md?p=18-A) insurance in connection with a newly chartered [State bank](/usc/12/1835a.md?p=e-1), savings [bank](/usc/12/1426a.md?p=g-1), savings and loan [association](/usc/12/1828.md?p=s-4-E-i) or similar institution;
  - (C) the establishment of a domestic branch or other facility with the ability to accept [deposits](/usc/12/5301.md?p=18-A) of a [regulated financial institution](#2);
  - (D) the relocation of the home [office](/usc/12/2279bb.md?p=4) or a branch [office](/usc/12/2279bb.md?p=4) of a [regulated financial institution](#2);
  - (E) the merger or consolidation with, or the acquisition of the assets, or the assumption of the liabilities of a [regulated financial institution](#2) requiring approval under [section 1828(c) of this title](/usc/12/1828.md?p=c) or under regulations issued under the authority of title IV[^2] of the National Housing Act [[12 U.S.C. 1724](https://uscode.house.gov/view.xhtml?req=(/us/usc/t12/s1724)) et seq.]; or
  - (F) the acquisition of shares in, or the assets of, a [regulated financial institution](#2) requiring approval under [section 1842 of this title](/usc/12/1842.md) or section 408(e)[^2] of the National Housing Act [[12 U.S.C. 1730a(e)](https://uscode.house.gov/view.xhtml?req=(/us/usc/t12/s1730a/e))].
- (4) A [financial institution](/usc/12/1715k.md?p=h-1-C) 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](/usc/12/5301.md?p=18-A) customer base without regard to geographic proximity.

# §2903. Financial institutions; evaluation

- (a) **In general—** In connection with its examination of a [financial institution](/usc/12/1715k.md?p=h-1-C), the [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1) shall—
  - (1) assess the institution’s record of meeting the [credit](/usc/12/5481.md?p=7) needs of its entire community, [including](/usc/12/25b.md?p=a-3) 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](/usc/12/2902.md?p=3) by such institution.
- (b) **Majority-owned institutions—** In assessing and taking into account, under [subsection (a)](#a), the record of a nonminority-owned and nonwomen-owned [financial institution](/usc/12/1715k.md?p=h-1-C), the [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1) may consider as a factor [capital](/usc/12/51c.md) investment, loan [participation](/usc/12/2206a.md?p=a-1), and other ventures undertaken by the institution in cooperation with minority- and [women](/usc/12/2907.md?p=b-2)-owned [financial institutions](/usc/12/1715k.md?p=h-1-C) and low-income [credit unions](/usc/12/3423.md?p=a-1-E) provided that these activities help meet the [credit](/usc/12/5481.md?p=7) needs of local communities in which such institutions and [credit unions](/usc/12/3423.md?p=a-1-E) are chartered.
- (c) **Financial holding company requirement—**
  - (1) **In general—** An election by a [bank holding company](/usc/12/1813.md?p=w-2) to become a [financial holding company](#c-3-A) under [section 1843 of this title](/usc/12/1843.md) shall not be effective if—
    - (A) the [Board](#c-3-B) finds that, as of the date the declaration of such election and the certification is filed by such [holding company](/usc/12/1828.md?p=s-4-E-i) under [section 1843(l)(1)(C)](/usc/12/1843.md?p=l-1-C)[^1] of this title, not all of the [subsidiary](/usc/12/24a.md?p=g-1) [insured depository institutions](/usc/12/24a.md?p=g-2) of the [bank holding company](/usc/12/1813.md?p=w-2) had achieved a rating of “satisfactory record of meeting community [credit](/usc/12/5481.md?p=7) needs”, or better, at the most recent examination of each such institution; and
    - (B) the [Board](#c-3-B) notifies the [company](/usc/12/24a.md?p=g-1) 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](/usc/12/24a.md?p=g-2) acquired by a [bank holding company](/usc/12/1813.md?p=w-2) during the 12-month period preceding the date of the submission to the [Board](#c-3-B) of the declaration and certification under [section 1843(l)(1)(C)](/usc/12/1843.md?p=l-1-C)[^1] of this title may be excluded for purposes of [paragraph (1)](#c-1) during the 12-month period beginning on the date of such acquisition if—
    - (A) the [bank holding company](/usc/12/1813.md?p=w-2) has submitted an affirmative plan to the [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1) to take such action as may be necessary in order for such institution to achieve a rating of “satisfactory record of meeting community [credit](/usc/12/5481.md?p=7) needs”, or better, at the next examination of the institution; and
    - (B) the plan has been accepted by such [agency](/usc/12/1422.md?p=12).
  - (3) **Definitions—** For purposes of this subsection, the following definitions shall apply:
    - (A) **Bank holding company; financial holding company—** The terms “[bank holding company](/usc/12/1813.md?p=w-2)” and “financial holding company” have the meanings given those terms in [section 1841 of this title](/usc/12/1841.md).
    - (B) **Board—** The term “Board” means the Board of Governors of the Federal Reserve System.
    - (C) **Insured depository institution—** The term “[insured depository institution](/usc/12/24a.md?p=g-2)” has the meaning given the term in [section 1813(c) of this title](/usc/12/1813.md?p=c).
- (d) **Low-cost education loans—** In assessing and taking into account, under [subsection (a)](#a), the record of a [financial institution](/usc/12/1715k.md?p=h-1-C), the [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1) shall consider, as a factor, low-cost education loans provided by the [financial institution](/usc/12/1715k.md?p=h-1-C) to low-income borrowers.

# §2904. Report to Congress


Each [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1) 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.


# §2905. Regulations


Regulations to carry out the purposes of this chapter shall be published by each [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1), except that the Comptroller of the Currency shall prescribe regulations applicable to [savings associations](/usc/12/1861.md?p=b-5) and the [Board](/usc/12/221a.md?p=a) of Governors shall prescribe regulations applicable to insured [State member banks](/usc/12/5301.md?p=18-A), [bank holding companies](/usc/12/1813.md?p=w-2) and [savings and loan holding companies](/usc/12/1813.md?p=w-3),,[^1] and shall take effect no later than 390 days after October 12, 1977.


# §2906. Written evaluations

- (a) **Required—**
  - (1) **In general—** Upon the conclusion of each examination of an [insured depository institution](/usc/12/24a.md?p=g-2) under [section 2903 of this title](/usc/12/2903.md), the [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1) shall prepare a written evaluation of the institution’s record of meeting the [credit](/usc/12/5481.md?p=7) needs of its entire community, [including](/usc/12/25b.md?p=a-3) low- and moderate-income neighborhoods.
  - (2) **Public and confidential sections—** Each written evaluation required under [paragraph (1)](#a-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](/usc/12/1707.md?p=d) the [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1)’s conclusions for each assessment factor identified in the regulations prescribed by the Federal financial supervisory [agencies](/usc/12/1422.md?p=12) to implement this chapter;
      - (ii) discuss the facts and data supporting such conclusions; and
      - (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)](#b-1-A-i) and [(ii)](#b-1-A-ii) of subparagraph (A) shall be presented separately for each [metropolitan area](#e-2) in which a regulated [depository institution](/usc/12/24a.md?p=g-2) maintains one or more [domestic branch](#e-1) [offices](/usc/12/2279bb.md?p=4).
  - (2) **Assigned rating—** The institution’s rating referred to in paragraph (1)(C)[^1] shall be 1 of the following:
    - (A) “Outstanding record of meeting community [credit](/usc/12/5481.md?p=7) needs”.
    - (B) “Satisfactory record of meeting community [credit](/usc/12/5481.md?p=7) needs”.
    - (C) “Needs to improve record of meeting community [credit](/usc/12/5481.md?p=7) needs”.
    - (D) “Substantial noncompliance in meeting community [credit](/usc/12/5481.md?p=7) 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](/usc/12/1715z–4a.md?p=a-2) or organization that has provided information in confidence to a Federal or [State](/usc/12/1707.md?p=d) financial supervisory [agency](/usc/12/1422.md?p=12).
  - (2) **Topics not suitable for disclosure—** The confidential section shall also contain any statements obtained or made by the [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1) in the course of an examination which, in the judgment of the [agency](/usc/12/1422.md?p=12), 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 part, to the institution, if the [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1) determines that such disclosure will promote the objectives of this chapter. However, disclosure under this paragraph shall not identify a [person](/usc/12/5481.md?p=19) or organization that has provided information in confidence to a Federal or [State](/usc/12/1707.md?p=d) financial supervisory [agency](/usc/12/1422.md?p=12).
- (d) **Institutions with interstate branches—**
  - (1) **State-by-State evaluation—** In the case of a [regulated financial institution](/usc/12/2902.md?p=2) that maintains [domestic branches](#e-1) in 2 or more [States](/usc/12/1707.md?p=d), the [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1) shall prepare—
    - (A) a written evaluation of the entire institution’s record of performance under this chapter, as required by subsections [(a)](#a), [(b)](#b), and [(c)](#c); and
    - (B) for each [State](/usc/12/1707.md?p=d) in which the institution maintains 1 or more [domestic branches](#e-1), a separate written evaluation of the institution’s record of performance within such [State](/usc/12/1707.md?p=d) under this chapter, as required by subsections [(a)](#a), [(b)](#b), and [(c)](#c).
  - (2) **Multistate metropolitan areas—** In the case of a [regulated financial institution](/usc/12/2902.md?p=2) that maintains [domestic branches](#e-1) in 2 or more [States](/usc/12/1707.md?p=d) within a multistate [metropolitan area](#e-2), the [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1) shall prepare a separate written evaluation of the institution’s record of performance within such [metropolitan area](#e-2) under this chapter, as required by subsections [(a)](#a), [(b)](#b), and [(c)](#c). If the [agency](/usc/12/1422.md?p=12) prepares a written evaluation pursuant to this paragraph, the scope of the written evaluation required under [paragraph (1)(B)](#d-1-B) shall be adjusted accordingly.
  - (3) **Content of State level evaluation—** A written evaluation prepared pursuant to [paragraph (1)(B)](#d-1-B) shall—
    - (A) present the information required by subparagraphs [(A)](#b-1-A) and [(B)](#b-1-B) of subsection (b)(1) separately for each [metropolitan area](#e-2) in which the institution maintains 1 or more [domestic branch](#e-1) [offices](/usc/12/2279bb.md?p=4) and separately for the remainder of the nonmetropolitan area of the [State](/usc/12/1707.md?p=d) if the institution maintains 1 or more [domestic branch](#e-1) [offices](/usc/12/2279bb.md?p=4) in such nonmetropolitan area; and
    - (B) describe how the Federal financial supervisory [agency](/usc/12/1422.md?p=12) has performed the examination of the institution, [including](/usc/12/25b.md?p=a-3) 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](/usc/12/2279bb.md?p=4) or other facility of a [regulated financial institution](/usc/12/2902.md?p=2) that accepts [deposits](/usc/12/5301.md?p=18-A), located in any [State](/usc/12/1707.md?p=d).
  - (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](/usc/12/2279bb.md?p=3) of the [Office](/usc/12/2279bb.md?p=4) 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](/usc/12/2902.md?p=1).
  - (3) **State—** The term “[State](/usc/12/1707.md?p=d)” has the same meaning as in [section 1813 of this title](/usc/12/1813.md).

# §2907. Operation of branch facilities by minorities and women

- (a) **In general—** In the case of any [depository institution](/usc/12/24a.md?p=g-2) which donates, sells on favorable terms (as determined by the [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1)), or makes available on a rent-free basis any branch of such institution which is located in any predominantly [minority](#b-3) neighborhood to any [minority](#b-3) [depository institution](/usc/12/24a.md?p=g-2) or [women](#b-2)’s [depository institution](/usc/12/24a.md?p=g-2), 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](/usc/12/24a.md?p=g-2) is meeting the [credit](/usc/12/5481.md?p=7) needs of the institution’s community for purposes of this chapter.
- (b) **Definitions—** For purposes of this section—
  - (1) **Minority depository institution—** The term “minority institution”[^1] means a [depository institution](/usc/12/24a.md?p=g-2) (as defined in [section 1813(c) of this title](/usc/12/1813.md?p=c))—
    - (A) more than 50 percent of the ownership or [control](/usc/12/24a.md?p=g-1) of which is held by 1 or more [minority](#b-3) individuals; and
    - (B) more than 50 percent of the net profit or loss of which accrues to 1 or more [minority](#b-3) individuals.
  - (2) **Women’s depository institution—** The term “women’s [depository institution](/usc/12/24a.md?p=g-2)” means a [depository institution](/usc/12/24a.md?p=g-2) (as defined in [section 1813(c) of this title](/usc/12/1813.md?p=c))—
    - (A) more than 50 percent of the ownership or [control](/usc/12/24a.md?p=g-1) of which is held by 1 or more [women](#b-2);
    - (B) more than 50 percent of the net profit or loss of which accrues to 1 or more [women](#b-2); and
    - (C) a significant percentage of senior management positions of which are held by [women](#b-2).
  - (3) **Minority—** The term “minority” has the meaning given to such term by section 1204(c)(3) of the [Financial Institutions](/usc/12/1715k.md?p=h-1-C) Reform, Recovery and Enforcement Act of 1989.

# §2908. Small bank regulatory relief

- (a) **In general—** Except as provided in subsections [(b)](#b) and [(c)](#c), any [regulated financial institution](/usc/12/2902.md?p=2) with aggregate assets of not more than $250,000,000 shall be subject to routine examination under this chapter—
  - (1) not more than once every 60 months for an institution that has achieved a rating of “outstanding record of meeting community [credit](/usc/12/5481.md?p=7) needs” at its most recent examination under [section 2903 of this title](/usc/12/2903.md);
  - (2) not more than once every 48 months for an institution that has received a rating of “satisfactory record of meeting community [credit](/usc/12/5481.md?p=7) needs” at its most recent examination under [section 2903 of this title](/usc/12/2903.md); and
  - (3) as deemed necessary by the [appropriate Federal financial supervisory agency](/usc/12/2902.md?p=1), for an institution that has received a rating of less than “satisfactory record of meeting community [credit](/usc/12/5481.md?p=7) needs” at its most recent examination under [section 2903 of this title](/usc/12/2903.md).
- (b) **No exception from CRA examinations in connection with applications for deposit facilities—** A [regulated financial institution](/usc/12/2902.md?p=2) described in [subsection (a)](#a) shall remain subject to examination under this chapter in connection with an [application for a deposit facility](/usc/12/2902.md?p=3).
- (c) **Discretion—** A [regulated financial institution](/usc/12/2902.md?p=2) described in [subsection (a)](#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](/usc/12/2902.md?p=1).