Section 185.260 Small Credit Union and Intermediate Small Credit Union Performance Standards

TITLE 38: FINANCIAL INSTITUTIONS

CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION

PART 185 CREDIT UNION COMMUNITY REINVESTMENT

SECTION 185.260 SMALL CREDIT UNION AND INTERMEDIATE SMALL CREDIT UNION PERFORMANCE STANDARDS

Section 185.260  Small Credit Union and Intermediate

Small Credit Union Performance Standards

a)         Performance criteria.

1)         Except

as set forth in Section 185.450, the Secretary evaluates the record of a small

credit union of helping to meet the credit needs of its assessment field

pursuant to all of the applicable assessment factors in Section 185.200 and

subsection (b).

2)         The

Secretary evaluates the record an intermediate small credit union, of helping

to meet the credit needs of its assessment field pursuant to all of the

applicable assessment factors in Section 185.200, subsections (b) and (c).

b)         Lending

test.  A small credit union and intermediate small credit union's lending performance

in home mortgage, small business, community development lending, consumer

lending, or any other type of lending, as applicable is evaluated pursuant to

the following criteria:

1)         the

credit union's loan-to-share ratio, adjusted for seasonal variation and, as

appropriate, other lending-related activities, such as loan originations for

sale to the secondary markets, community development loans, or qualified

investments;

2)         the

credit union's record of lending to and, as appropriate, engaging in other

lending-related activities for borrowers of different income levels and

businesses of different sizes;

3)         the

geographic distribution of the credit union's loans in the context of its

relevant field of membership;

4)         the

credit union's record of taking action, if warranted, in response to written

complaints about its performance in helping to meet credit needs in its assessment

field and its performance with regard to fair lending policies and practices;

and

5)         the

origination of loans to businesses with

on of the credit union's loans in the context of its

relevant field of membership;

4)         the

credit union's record of taking action, if warranted, in response to written

complaints about its performance in helping to meet credit needs in its assessment

field and its performance with regard to fair lending policies and practices;

and

5)         the

origination of loans to businesses with gross annual revenues of $1,000,000 or

less, particularly those in low-income and moderate-income neighborhoods.  This

subsection (b)(5) applies only to credit unions that make business loans.

c)         Community

development test.  An intermediate small credit union's community development

performance is also evaluated pursuant to the following criteria:

1)         the

number and amount of community development loans;

2)         the

extent to which the credit union provides community development services;

3)         the

credit union's responsiveness through such activities to community development

lending, investment, and service needs; and

4)         at

the election of the credit union, the number and amount of qualified

investments.

d)         Small

credit union and intermediate small credit union performance rating.  The

Secretary considers all of the applicable assessment factors in Section 185.200

and rates the performance of a credit union evaluated under this Section as

provided in 185.APPENDIX A (Ratings).