Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 185 - CREDIT UNION COMMUNITY REINVESTMENT › Subpart A - GENERAL › Section 185.20 - 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 MSA/CBSA, if a person or
				  geography is located in an MSA/CBSA; or
the statewide nonmetropolitan median family income, if a
				  person or geography is located outside an MSA/CBSA.
"Assessment field" means the persons delineated in accordance
				  with Section 400 as subject to the ILCRA evaluation.
"Automated teller machine" or "ATM" means an automated,
				  unstaffed banking facility owned or operated by, or operated exclusively for,
				  the credit union at which deposits are received, cash dispersed, or money
				  lent.
"Branch" means a staffed facility established or acquired as
				  a branch under Illinois law.
"CBSA" means a core based statistical area as defined by the
				  Director of the Office of Management and Budget.
"Community development" means:
Affordable housing (including multifamily rental housing) for
				  low- and moderate-income individuals;
Community services targeted to low- and 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; or
distressed or underserved nonmetropolitan middle-income
				  geographies designated by the Board of Governors of the Federal Reserve System,
				  the Federal Deposit Insurance Corporation, and the 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;
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; and
Any other such area as determined by the Secretary 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.
"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 credit
				  union:
has not been reported or collected by the credit union or an
				  affiliate for consideration in the credit union's assessment as a home mortgage
				  or consumer loan, unless it is a multifamily dwelling loan (as described in
				  Appendix A to 12 CFR 203, the Consumer Financial Protection Bureau's
				  implementing regulations for the Home Mortgage Disclosure Act); and
directly or indirectly benefits the credit union's assessment
				  field.
"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 credit
				  union's retail banking services under Section 185.240(d).
"Community Reinvestment Act" unless context indicates
				  otherwise means the Illinois Community Reinvestment Act ("ILCRA").
"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 or small business loan. Consumer loans include the
				  following categories of loans:
Motor vehicle loan, a consumer loan extended for the purchase
				  of and secured by a motor vehicle;
Credit card loan, 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, a secured consumer loan that is
				  not included in one of the other categories of consumer loans; and
Other unsecured consumer loan, an unsecured consumer loan
				  that is not included in one of the other categories of consumer loans.
"Credit union" means a corporation chartered as a
				  cooperative, non-profit association, incorporated under the Illinois Credit
				  Union Act [205 ILCS 305].
"Department" means the Illinois Department of Financial and
				  Professional Regulation.
"Field of membership" means the members or persons eligible
				  to join a credit union consisting of members or persons:
within one or more of the following common bonds:
				  association, occupation or community as defined in 205 ILCS 305; and
as otherwise authorized under 205 ILCS 305.
"Fiscal year" means the fiscal year for the State of Illinois
				  (starts July 1 and ends June 30).
"Geography" means a census tract or a block numbering area
				  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
				  12 CFR
				  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, an individual income that is less than 50% of the
				  area median income, or a median family income that is less than 50%, in the
				  case of a geography.
Moderate-income, an individual income that is at least 50%
				  and less than 80% of the area median income, or a median family income that is
				  at least 50% and less than 80%, in the case of a geography.
Middle-income, an individual income that is at least 80% and
				  less than 120% of the area median income, or a median family income that is at
				  least 80% and less than 120%, in the case of a geography.
Upper-income, an individual income that is 120% or more of
				  the area median income, or a median family income that is 120% or more, in the
				  case of a geography.
"Institution", unless context indicates otherwise, means a
				  credit union.
"Limited purpose institution or limited purpose credit union"
				  means an institution 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 institution is in effect, in accordance with
				  Section 185.250(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 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 credit
				  union, other than a branch, that is open to the public or members 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.
"MSA" means a metropolitan statistical area or a primary
				  metropolitan statistical area as defined by the United States Director of the
				  Office of Management and Budget.
"Person" means any individual, partnership, joint venture,
				  trust, estate, firm, corporation, cooperative society or association, or any
				  other form of business association or legal entity.
"Public lobby" means an area generally accessible to a credit
				  union's members or some of a credit union's members which allows for easy
				  reading of notices in the place of business.
"Qualified investment" means a lawful investment, deposit,
				  membership share, or grant that has as its primary purpose community
				  development, and lawful investments include the following:
corporations for the purpose of micro-lending in the area of
				  small business and small farms;
corporations for the purpose of providing technical
				  assistance to nonprofit housing corporations, small businesses and farms for
				  the purpose of establishing creditworthiness;
contributions to any private nonprofit organization organized
				  for improving the social and economic conditions, such as community development
				  and redevelopment programs, small business technical assistance, and
				  educational institutions, in communities in which the credit union has an
				  office; and
contributions for the purpose of relieving suffering or
				  distress resulting from disaster or other calamity, such as hurricane or flood,
				  occurring in any part of the State; and
contributions to community development and redevelopment
				  programs.
"Secretary" means the Secretary or Acting Secretary of the
				  Financial and Professional Regulation and his or her authorized
				  representatives.
"Small credit union" means a credit union that, as of
				  December 31 of either of the prior two calendar years, had total assets of less
				  than $391 million. "Intermediate small credit union" means a credit union with
				  assets of at least $391 million as of December 31 of both of the prior two
				  calendar years and less than $1.564 billion as of December 31 of either of the
				  prior two calendar years. The asset-size thresholds (dollar figures) for small
				  credit unions and intermediate small credit unions shall be automatically
				  adjusted to remain consistent with the asset-size thresholds in effect for
				  small banks and intermediate small banks as published by the Federal Deposit
				  Insurance Corporation. The Secretary shall publish each adjustment of the
				  asset-size thresholds for small credit unions and intermediate small credit
				  unions on the Department's website. "Very Small Credit Union" means a credit
				  union that is eligible for the Very Small Credit Union Examination Procedures
				  set forth in 185.Appendix D pursuant to Section 185.450.
"Small business loan" means a loan to a business with gross
				  annual revenues of $1,000,000.00. For purposes of this Part, small business
				  loan includes small farm loans.
"Special Credit Program" means any credit program offered by
				  a credit union 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 CFR
				  1002.8, and the Illinois Human Rights Act
				  [775 ILCS 5/4-104(C)].
"Substantial majority" means a portion of the credit union'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 a person who does not have a checking
				  or savings account with an insured bank, savings bank, or credit union.
"Underbanked person" means a person that has a checking or
				  savings account with an insured depository institution but that used
				  alternative financial products or services in the past 12 months.
"Wholesale credit union" means a credit union 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
				  credit union is in effect, in accordance with Section
				  185.250(b).