The Fund will then determine what new investments would be practical, innovative and add value to the targeted communities. The Fund intends that each investment will fill a capital gap and not simply replace existing funding. Through this process, the Fund will create an actively managed bond portfolio. The portfolio will be comprised of privately placed securities supporting affordable housing, education, small business loan securitizations and other job creating investments in the target regions. Large institutions' CRA performance is typically evaluated under the lending, investment and service tests.
Examiners consider large institutions' qualified investments under the investment test.
See 60 Fed. See 60 Fed. Qualified investments may also be considered to determine if a small institution merits an outstanding CRA rating. See 60 Fed. The community development test, which is appropriate for institutions designated as wholesale and limited purpose institutions, evaluates, inter alia , the number and amount of qualified investments.