Once an investor invests in the Fund, the adviser then begins a comprehensive effort to find qualifying investments in the investors assessment area. In addition, we have two different ways for banks to invest in The Fund.
Traditional investment in mutual fund. After getting prospectus, an investor will fill out an application and wire funds to The Fund trustee at the end of the month.
An investor can subscribe to the fund by depositing 5% of the subscription with The Fund. The remaining 95% funding can be called by The Fund as loans in the investors assessment area are found and purchased.
We should also note that at least two banks have received investment test credit in their CRA exams for investing in the Fund, even though there were no loans in the Fund in these banks’ assessment areas. There is considerable variability in how different CRA examiners look at things, so we can’t guarantee how a different examiner, in different circumstances would react in a similar situation, but we do have at least two precedents to help make the case. We can direct you to each bank’s CRA exam results if you are interested.