Section 185.240 Service Test

TITLE 38: FINANCIAL INSTITUTIONS

CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION

PART 185 CREDIT UNION COMMUNITY REINVESTMENT

SECTION 185.240 SERVICE TEST

Section 185.240  Service Test

a)         Scope

of test.  The service test evaluates a credit union's record of helping to meet

the credit needs of its assessment field by analyzing both the availability and

effectiveness of a credit union's systems for delivering retail banking

services and the extent and innovativeness of its community development

services.

Credit unions that provide all or a

majority of their services via mobile and other digital channels must fulfill

their obligation to meet the financial service needs of their assessment fields,

including low-income to moderate-income neighborhoods, consistent with their

common bond.

b)         Areas

benefited.  Community development services must benefit a credit union's assessment

field.

c)         Affiliate

service.  At a credit union's option, the Secretary will consider, in the

assessment of a credit union's service performance, a community development

service provided by an affiliate of the credit union, if the community

development service is not claimed by any other institution

and in this regard the credit union shall monitor and

keep records of whether such claims exist

.

d)         Performance

criteria − Retail Banking Services.  The Secretary evaluates the

availability and effectiveness of a credit union's systems for delivering

retail banking services, considering all of the applicable assessment factors

in Section 185.200 and pursuant to the following criteria:

1)         the current distribution of the credit union's branches among

low-, moderate-, middle-, and upper-income geographies, if applicable;

2)         in

the context of its current distribution of the credit union's branches, the

credit union's record of opening and closing branches, particularly branches

located in low- and moderate-income geographies or primarily serving low- and

moderate-

the current distribution of the credit union's branches among

low-, moderate-, middle-, and upper-income geographies, if applicable;

2)         in

the context of its current distribution of the credit union's branches, the

credit union's record of opening and closing branches, particularly branches

located in low- and moderate-income geographies or primarily serving low- and

moderate- income individuals;

3)         the

availability and effectiveness of alternative systems for delivering retail

banking services (e.g., ATMs, surcharge-free ATMs within its network, ATMs not

owned or operated by or exclusively for the credit union, banking by telephone

or computer, loan production offices, bank-at-work or bank-by-mail programs) in

low- and moderate-income geographies and to low- and moderate-income

individuals;

4)         the

range of services provided in low-, moderate-, middle-, and upper- income

geographies, if applicable, and the degree to which the services are tailored

to meet the needs of those geographies; and

5)         The credit union's record of effectively

marketing its retail banking services and products to unbanked or underbanked

persons and offering retail banking services and products targeted to meet the

needs of unbanked and underbanked persons. In determining whether a credit union

offers retail banking services and products targeted to meet the needs of

unbanked and underbanked persons, the Department shall consider:

A)        whether the credit union

is BankOn certified or

offers

accounts substantially and materially similar to BankOn certified accounts; or

B)        whether the credit union offers financial

services and products to users of alternative financial products or services,

provided that, that the credit union has affirmatively and reasonably

demonstrated that:

i)          the credit union offers such accounts or such

financial services and products in conjunction with focused and sustained

marketing efforts reasonably designed to reach unbanked and un

the credit union offers financial

services and products to users of alternative financial products or services,

provided that, that the credit union has affirmatively and reasonably

demonstrated that:

i)          the credit union offers such accounts or such

financial services and products in conjunction with focused and sustained

marketing efforts reasonably designed to reach unbanked and underbanked

persons;

ii)         unbanked and underbanked persons may

reasonably conveniently obtain or use such accounts or such financial services

and products; and

iii)        the credit union offers such accounts or such

financial services and products at a cost to the unbanked and underbanked

persons that is significantly lower than would otherwise be incurred by the

users of alternative financial products or services.

e)         Performance

criteria − Community Development Services.  The Secretary evaluates

community development services considering all of the applicable assessment

factors in Section 185.200 and pursuant to the following criteria:

1)         the

extent to which the credit union provides community development services; and

2)         the

innovativeness and responsiveness of community development services.

f)         Service

performance rating.  The Secretary rates a credit union's service performance

as provided in 185.APPENDIX A (Ratings).