Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 345 - BANK COMMUNITY REINVESTMENT › Subpart A - GENERAL › Section 345.20 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
For purposes of this Part, the following definitions
				  apply:
"Affiliate" means any company that controls, is controlled
				  by, or is under common control with another company. The term "control" has the
				  meaning given to that term in
				  12 U.S.C.
				  1841(a)(2), and a company is
				  under common control with another company if both companies are directly or
				  indirectly controlled by the same company.
"Alternative financial products or services" means financial
				  products or services offered by persons other than an insured depository
				  institution at a higher cost than comparable services offered by an insured
				  depository institution.
"Area median income"means:
the median family income for the Metropolitan Statistical
				  Area (MSA), if a person or geography is located in an MSA, or for the
				  metropolitan division, if a person or geography is located in an MSA that has
				  been subdivided into metropolitan divisions; or
the statewide nonmetropolitan median family income, if a
				  person or geography is located outside an MSA.
"Assessment area" means a geographic area delineated in
				  accordance with Section 345.400.
"Bank" means a bank that has a charter issued under the
				  Illinois Banking Act [205 ILCS 5], a savings bank that has a charter issued
				  under the Savings Bank Act [205 ILCS 205], and an FDIC-insured banking office
				  of a foreign banking corporation issued a certificate of authority under the
				  Foreign Banking Office Act [205 ILCS 645].
"Branch" means a staffed banking facility defined as a branch
				  under Section 2 of the Illinois Banking Act [205 ILCS 5/2] or Section 1007.20
				  of the Illinois Savings Bank Act [205 ILCS 205/1007.20], and a branch of a
				  banking office of a foreign banking corporation issued a certificate of
				  authority under the Foreign Banking Office Act [205 ILCS 645], whether shared
				  or unshared, including, for example, a mini-branch in a grocery store or a
				  branch operated in conjunction with any other local business or nonprofit
				  organization.
"Community development" means:
Affordable housing (including multifamily rental housing) for
				  low- or moderate-income individuals;
Community services targeted to low- or moderate-income
				  individuals;
Activities that promote economic development by financing
				  businesses or farms that meet the size eligibility standards of the Small
				  Business Administration's Development Company or Small Business Investment
				  Company programs (13 CFR
				  121.301) or have gross annual revenues of $1
				  million or less; or
Activities that revitalize or stabilize -
Low-or moderate-income geographies;
Designated disaster areas;
Distressed or underserved nonmetropolitan middle-income
				  geographies designated by the Board of Governors of the Federal Reserve System,
				  FDIC, and Office of the Comptroller of the Currency, based on -
Rates of poverty, unemployment, and population loss;
				  or
Population size, density, and dispersion. Activities
				  revitalize and stabilize geographies designated based on population size,
				  density, and dispersion if they help to meet essential community needs,
				  including needs of low- and moderate-income individuals; or
Unbanked or underbanked geographies; and
Activities targeted to directly and tangibly -
Increase climate resilience in low-income to moderate-income
				  neighborhoods; or
Mitigate environmental harm in low-income to moderate-income
				  neighborhoods.
"Community development loan" means a loan that:
Has as its primary purpose community development; and
Except in the case of a wholesale or limited purpose
				  bank:
Has not been reported or collected by the bank or an
				  affiliate for consideration in the bank's assessment as a home mortgage, small
				  business, small farm, or consumer loan, unless the loan is for a multifamily
				  dwelling (as defined in 12
				  CFR 1003.2(n)); and
Benefits the bank's assessment area or a broader statewide or
				  regional area that includes the bank's assessment area.
"Community development service" means a service that:
Has as its primary purpose community development;
Is related to the provision of financial services; and
Has not been considered in the evaluation of the bank's
				  retail banking services under Section 345.240(d).
"Consumer loan" means a loan to one or more individuals for
				  household, family, or other personal expenditures. A consumer loan does not
				  include a home mortgage, small business, or small farm loan. Consumer loans
				  include the following categories of loans:
Motor vehicle loan, which is a consumer loan extended for the
				  purchase of and secured by a motor vehicle;
Credit card loan, which is a line of credit for household,
				  family, or other personal expenditures that is accessed by a borrower's use of
				  a "credit card," as this term is defined in
				  12 CFR
				  1026.2;
Other secured consumer loan, which is a secured consumer loan
				  that is not included in one of the other categories of consumer loans;
				  and
Other unsecured consumer loan, which is an unsecured consumer
				  loan that is not included in one of the other categories of consumer
				  loans.
"Department" means the Illinois Department of Financial and
				  Professional Regulation.
"FDIC" means the Federal Deposit Insurance
				  Corporation.
"Geography" means a census tract delineated by the United
				  States Bureau of the Census in the most recent decennial census.
"Home mortgage loan" means a closed-end mortgage loan or an
				  open-end line of credit as these terms are defined under Section 1003.2 and
				  that is not an excluded transaction under
				  12 CFR
				  1003.3(c)(1) through (10) and
				  (13).
"Income level" includes:
Low-income, which means an individual income that is less
				  than 50 percent of the area median income or a median family income that is
				  less than 50 percent in the case of a geography.
Moderate-income, which means an individual income that is at
				  least 50 percent and less than 80 percent of the area median income or a median
				  family income that is at least 50 and less than 80 percent in the case of a
				  geography.
Middle-income, which means an individual income that is at
				  least 80 percent and less than 120 percent of the area median income or a
				  median family income that is at least 80 and less than 120 percent in the case
				  of a geography.
Upper-income, which means an individual income that is 120
				  percent or more of the area median income or a median family income that is 120
				  percent or more in the case of a geography.
"Limited purpose bank" means a bank that offers only a narrow
				  product line (such as credit card or motor vehicle loans) to a regional or
				  broader market and for which a designation as a limited purpose bank is in
				  effect, in accordance with Section 345.250(b).
"Loan location" means a loan is located as follows:
A consumer loan is located in the geography where the
				  borrower resides;
A home mortgage loan is located in the geography where the
				  property to which the loan relates is located; and
A small business or small farm loan is located in the
				  geography where the main business facility or farm is located or where the loan
				  proceeds otherwise will be applied, as indicated by the borrower.
"Loan production office" means a staffed facility of a bank,
				  other than a branch, that is open to the public and that provides
				  lending-related services, such as loan information and applications.
"Metropolitan division" means a metropolitan division as
				  defined by the United States Director of the Office of Management and
				  Budget.
"Metropolitan Statistical Area" or "MSA" means a metropolitan
				  statistical area as defined by the United States Director of the Office of
				  Management and Budget.
"Nonmetropolitan area" means any area that is not located in
				  an MSA.
"Qualified investment" means a lawful investment, deposit,
				  membership share, or grant that has as its primary purpose community
				  development.
"Remote Service Facility" or "RSF" means an automated,
				  unstaffed banking facility owned or operated by, or operated exclusively for,
				  the bank, such as an automated teller machine, cash dispensing machine,
				  point-of-sale terminal, or other remote electronic facility, at which deposits
				  are received, cash dispersed, or money lent.
"Small Bank" means a bank that is a small bank under federal
				  administrative rules established by the bank's primary federal financial
				  supervisory agency pursuant to the federal Community Reinvestment Act and an
				  intermediate small bank means a bank that is an intermediate small bank under
				  federal administrative rules established by the bank's primary federal
				  financial supervisory agency pursuant to the federal Community Reinvestment
				  Act.
"Small business loan" means a loan included in "loans to
				  small businesses" as defined in the instructions for preparation of the
				  Consolidated Report of Condition and Income (Federal Financial Institution
				  Examination Council (FFIEC) 031 and 041).
"Small farm loan" means a loan included in "loans to small
				  farms" as defined in the instructions for preparation of the Consolidated
				  Report of Condition and Income (FFIEC 031 and 041).
"Special credit program" means any credit program offered by
				  a bank to meet special social needs which is in conformity with and explicitly
				  authorized by the Equal Credit Opportunity Act (15 U.S.C.
				  1691(c)) and Regulation B
				  (12 C.F.R.
				  1002.8).
"Substantial majority" means a portion of the bank's lending
				  activity so significant by number and dollar volume of loans that the lending
				  test evaluation would not meaningfully reflect its lending performance if
				  consumer loans were excluded.
"Unbanked person" means an individual that does not have a
				  checking or savings account with an insured depository institution.
"Underbanked person" means an individual that has a checking
				  or saving account with an insured depository institution but that used
				  financial products or services from a person other than an insured depository
				  institution in the past 12 months.
"Very Small Bank" means a bank that is eligible for the Very
				  Small Bank Examination Procedure set forth in Section 345.450(b).
"Wholesale bank" means a bank that is not in the business of
				  extending home mortgage, small business, small farm, or consumer loans to
				  retail customers, and for which a designation as a wholesale bank is in effect,
				  in accordance with Section 345.250(b).