I
104TH CONGRESS
1ST SESSION
H. R. 317
To amend the Community Reinvestment Act of 1977 to reduce onerous
recordkeeping and reporting requirements for regulated financial institu-
tions, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1995
Mr. MCCOLLUM introduced the following bill; which was referred to the
Committee on Banking and Financial Services
A BILL
To amend the Community Reinvestment Act of 1977 to
reduce onerous recordkeeping and reporting requirements
for regulated financial institutions, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Community Reinvest-
ment Improvement Act of 1995’’.
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SEC. 2. MODIFIED EVALUATIONS.
The Community Reinvestment Act of 1977 (12
U.S.C. 2901 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 809. MODIFIED EVALUATIONS.
‘‘(a) SCOPE.—In lieu of being evaluated under section
804 and receiving a written evaluation under section 807,
an institution’s record of meeting the credit needs of its
entire community with respect to any calendar year shall
be evaluated pursuant to this section if the institution—
‘‘(1) has not been found to be in violation of
section 701(a) of the Equal Credit Opportunity Act,
or any other provision of such Act, during the five-
year period preceding such calendar year;
‘‘(2) has not received a rating of ‘needs to im-
prove’ or ‘substantial noncompliance’ from the su-
pervisory agency in the most recent evaluation of the
institution under section 807;
‘‘(3) has not been disqualified from evaluation
under this section by the supervisory agency pursu-
ant to a provision of this section; and
‘‘(4) has, as of the December 31 preceding the
beginning of such calendar year, total assets of less
than $500,000,000.
The dollar amount in this subsection shall be adjusted an-
nually after December 31, 1994, by the annual percentage
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increase in the Consumer Price Index for Urban Wage
Earners and Clerical Workers published by the Bureau of
Labor Statistics.
‘‘(b) MODIFIED EVALUATION.—An institution which
is described in subsection (a) with respect to any calendar
year shall, during such year—
‘‘(1) maintain internal policies to help meet the
credit needs of its local community consistent with
the safe and sound operation of such institution;
‘‘(2) declare in writing to the supervisory agen-
cy, at such time as the agency shall prescribe by reg-
ulation, that the institution—
‘‘(A) is an institution described in sub-
section (a); and
‘‘(B) is in compliance with this subsection;
‘‘(3) display any notices as required by the su-
pervisory agency concerning the institution’s compli-
ance with the requirements of this Act; and
‘‘(4) make available for public inspection the
following information regarding the record of such
institution in meeting the credit needs of its entire
community—
‘‘(A) an identification of the community it
serves;
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‘‘(B) a list of the types of credit offered by
the institution;
‘‘(C) public comments received during such
year or any of the two years immediately pre-
ceding such year regarding the institution’s
service of the entire community’s credit needs;
and
‘‘(D) copies of any declaration submitted
under subparagraph (2).
‘‘(c) REGULATORY EVALUATION.—
‘‘(1) IN
GENERAL.—The supervisory agency
shall conduct an evaluation of an institution’s com-
pliance with this section in connection with its exam-
ination of such institution, or every two years,
whichever is more frequent.
‘‘(2) NOTICE.—Upon commencing a compliance
evaluation pursuant to the section, the supervisory
agency shall provide public notice stating that it is
conducting such evaluation of the institution.
‘‘(3) 
PROCEDURE.—In 
performing 
periodic
evaluations of institutions pursuant to subsection (c)
of this section, the supervisory agency—
‘‘(A) shall review the institution’s existing
business records and shall not require the insti-
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tution to produce documentation other than ex-
isting business records, and
‘‘(B) shall review any additional informa-
tion provided by the institution or other inter-
ested parties.
‘‘(4) DISQUALIFICATION.—In addition to any
administrative enforcement action authorized under
any other provision of law, if the supervisory agency
determines after an evaluation under this subsection
that the institution is not in compliance with this
section, then the supervisory agency may determine
that the institution shall be disqualified from evalua-
tion under this section for such period as the agency
may determine to be appropriate.
‘‘(e) PENALTIES.—In addition to any criminal or civil
penalty or any administrative enforcement action author-
ized under any other provision of law, if the supervisory
agency finds that an institution has intentionally submit-
ted false information to the supervisory agency or other-
wise willfully violated the requirements of subsection (b),
the institution shall be disqualified from evaluation under
this section such period, not to exceed ten years, as the
agency may determine to be appropriate.
‘‘(f) DEFINITIONS.—
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‘‘(1) ‘Institution’ means a regulated financial
institution meeting the requirements of subsection
(a).
‘‘(2) ‘Supervisory agency’ means the appro-
priate Federal financial supervisory agency of a reg-
ulated financial institution.’’.
SEC. 3. EVALUATION EXEMPTION.
The Community Reinvestment Act of 1977 (12
U.S.C. 2901 et seq.) is amended by inserting after section
809 (as added by section 2 of this Act) the following new
section:
‘‘SEC. 810. EVALUATION EXEMPTION.
‘‘A regulated financial institution shall not be subject
to the evaluation requirements of this title or any regula-
tions issued under this title if—
‘‘(1) the main office and each branch of such
institution is located in an incorporated city or town,
or an unincorporated place recognized by the Census
Bureau that has a population of not more than
twenty-five thousand persons; and
‘‘(2) the aggregate assets of the institution and
any company which is a depository holding company
with respect to such institution (as defined in section
3(w) of the Federal Deposit Insurance Act) are less
than $100,000,000.
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The dollar amount in this section shall be adjusted annu-
ally after December 31, 1995, by the annual percentage
increase in the Consumer Price Index for Urban Wage
Earners and Clerical Workers published by the Bureau of
Labor Statistics.’’.
SEC. 4. SAFE HARBOR.
The Community Reinvestment Act of 1977 (12
U.S.C. 2901 et seq.) is amended by inserting after section
810 (as added by section 3 of this Act) the following new
section:
‘‘SEC. 811. SAFE HARBOR.
‘‘Notwithstanding section 804(2), an application for
a deposit facility by a regulated financial institution shall
not be denied on the basis of such institution’s compliance
with this Act if such institution in the previous twenty-
four months—
‘‘(1) has received a rating of ‘Outstanding’ or
‘Satisfactory’ from the appropriate Federal financial
supervisory agency in an evaluation of the institu-
tion under section 807 conducted, or
‘‘(2) has been found to be in compliance with
section 809 in a regulatory review conducted under
section 809(c),
unless such institution’s compliance has materially dete-
riorated since such evaluation.’’.