Section 345.230 Investment Test

Section

345.230  Investment Test

a)         Scope of test.  The investment test evaluates

a bank's record of helping to meet the credit needs of its assessment area

through qualified investments that benefit its assessment area or a broader

statewide or regional area that includes the bank's assessment area.

b)         Exclusion.  Activities considered under the

lending or service tests may not be considered under the investment test.

c)         Affiliate investment.  At a bank's option, the

Secretary will consider, in its assessment of a bank's investment performance,

a qualified investment made by an affiliate of the bank, if the qualified

investment is not claimed by any other institution.  If a bank has established

a foundation, the Secretary will consider, at the bank's option, qualified

investments and donations of the foundation if those investments or donations

have the primary purpose of community development.

d)         Disposition of branch premises.  Donating,

selling on favorable terms, or making available on a rent-free basis a branch

of the bank that is located in a predominantly minority neighborhood to a

minority depository institution or women's depository institution (as these

terms are defined in 12 U.S.C. 2907(b)) will be considered as a qualified

investment.

e)         Performance criteria.  The Secretary evaluates

the investment performance of a bank considering the assessment factors in

Section 345.200 and pursuant to the following criteria:

1)         The dollar amount of qualified investments;

2)         The innovativeness or complexity of qualified

investments;

3)         The responsiveness of qualified investments to

credit and community development needs; and

4)         The degree to which the qualified investments

are not routinely provided by private investors.

f)         Investment performance rating. The Secretary

rates a bank's investment performance as provided in Section 345.APPENDIX A.