Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 46.00 - Community Reinvestment › Section 46.12 - Definitions

Current through Register 1525, July 5, 2024
For purposes of
				209 CMR
				46.00, the following definitions apply:
Affiliate
. Any company that controls,
				is controlled by, or is under common control with another company. The term
control
has the meaning 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.
Area Median Income
:
(a) the median family income for the MSA/CBSA, if a person or
				geography is located in an MSA/CBSA; or
(b) the statewide nonmetropolitan median family income, if a
				person or geography is located outside an MSA/CBSA.
Assessment Area
. A geographic area
				delineated in accordance with
				209 CMR
				46.41 or another delineation for certain
				credit unions made pursuant to
				209 CMR
				46.41(8).
Automated Teller Machine (ATM)
. An
				automated, unstaffed banking facility owned or operated by, or operated
				exclusively for, the institution at which deposits are received, cash
				dispersed, or money lent.
Branch
. A staffed banking facility
				established or acquired as a branch under Massachusetts law.
CBSA
. A core based statistical area as
				defined by the Director of the Office of Management and Budget.
CMSA
. A consolidated metropolitan
				statistical area as defined by the Director of the Office of Management and
				Budget.
Commissioner
. The Commissioner of
				Banks.
Community Development
:
(a) affordable housing (including multifamily rental housing)
				for low- and moderate-income individuals;
(b) community services targeted to low- and moderate-income
				individuals;
(c) 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
(d) activities that revitalize or stabilize the fishing
				industry.
(e) Activities that revitalize or stabilize -
1. Low- or moderate-income geographies;
2. Designated disaster areas; or
3. 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; or
4. Any other such area as determined by the Commissioner based
				on -
a. Rates of poverty, unemployment, and population loss;
				or
b.
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
:
(a) has as its primary purpose community development;
				and
(b) except in the case of a wholesale or limited purpose
				institution:
1. has not been reported or collected by the institution or an
				affiliate for consideration in the institution's assessment as a home mortgage,
				small business, small farm, 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
2. benefits the institution's assessment area(s) or a broader
				statewide or regional area that includes the institution's assessment area(s).
Community Development Service
. A
				service that:
(a) has as its primary purpose community development;
(b) is related to the provision of financial services;
				and
(c) has not been considered in the evaluation of the
				institution's retail banking services under
				209 CMR
				46.24(5).
Consumer Loan
. 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:
(a)
Motor Vehicle Loan
. A consumer
				loan extended for the purchase of and secured by a motor vehicle;
(b)
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 defined in
				209 CMR
				32.02:
Definitions and Rules of
				Construction
;
(c)
Home Equity Loan
. A consumer loan
				secured by a residence of the borrower;
(d)
Other Secured Consumer Loan
. A
				secured consumer loan that is not included in one of the other categories of
				consumer loans; and
(e)
Other Unsecured Consumer Loan
. An
				unsecured consumer loan that is not included in one of the other categories of
				consumer loans.
Credit Union
. A corporation chartered
				under M.G.L. c. 171. A credit union is also an
Institution
as defined in
				209 CMR
				46.00, except where otherwise specified by the
				provisions of
				209 CMR
				46.00.
Geography
. 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
. A
home
				improvement loan
or a
home purchase loan
as defined in
				12
				CFR 203.2:
The Home Mortgage
				Disclosure Act
.
Income Level
:
(a) 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.
(b) 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.
(c) 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.
(d) 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
. A bank or credit union
				chartered under the laws of the Commonwealth or an out-of-state bank, an
				out-of-state national bank or a foreign bank with a branch office in the
				Commonwealth; provided, however,
Institution
shall not
				include a credit union where otherwise specified under
				209 CMR
				46.00.
Limited Purpose Institution
. 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
				209
				CMR 46.25(2).
Loan Location
. A loan is located as
				follows:
(a) a consumer loan is located in the geography where the
				borrower resides;
(b) a home mortgage loan is located in the geography where the
				property to which the loan relates is located; and
(c) 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
. A staffed
				facility, other than a branch, that is open to the public and that provides
				lending-related services, such as loan information and applications.
MSA
. A metropolitan statistical area
				or a primary metropolitan statistical area as defined by the Director of the
				Office of Management and Budget.
Qualified Investment
. A lawful
				investment, deposit, membership share, or grant that has as its primary purpose
				community development, and lawful investments in the following:
(a) corporations for the purpose of micro-lending in the area
				of small business, small farms, and the fishing industry;
(b) corporations for the purpose of providing technical
				assistance to nonprofit housing corporations, small businesses and farms for
				the purpose of establishing creditworthiness;
(c) contributions to any private nonprofit organization
				organized for improving the social and economic conditions, such as community
				development programs, small business technical assistance, and educational
				institutions, in communities in which the institution has an office;
(d) 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 Commonwealth; and
(e) the small business capital access program (CAP), pursuant
				to M.G.L. c. 23A, § 57.
Small Institution
:
(a) An institution that, as of December
				31st of either of the prior two calendar years, had
				total assets of less than $1 billion.
(b)
Intermediate Small Institution
. A
				small institution with assets of at least $250 million as of December
				31st of both of the prior two calendar years and
				less than $1 billion as of December 31st of either
				of the prior two calendar years.
(c)
Adjustment
. The dollar figures in
				the small bank definition 209 CMR 46.12 shall be adjusted annually and
				published by the Commissioner, based on the year to year change in the average
				of the Consumer Price Index for Urban Wage Earners and Clerical Workers, not
				seasonally adjusted for each 12-month period ending in November, with rounding
				to the nearest million.
Small Business Loan
. A loan included
				in
Loans to Small Businesses
as defined in the
				instructions for preparation of the Consolidated Report of Condition and
				Income.
Small Farm Loan
. A loan included in
Loans to Small Farms
as defined in the instructions
				for preparation of the Consolidated Report of Condition and Income.
Wholesale Institution
. An institution
				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 institution is in effect, in accordance with
				209
				CMR
				46.25(2).