§ 19-9-4 - Credit needs of local communities.
SECTION 19-9-4
§ 19-9-4 Credit needs of localcommunities. – (a) Each regulated institution, as defined in this chapter, to which theCommunity Reinvestment Act of 1977, 12 U.S.C. § 2901 et seq., and assubsequently amended from time to time, applies, shall file with the divisionof banking, a copy of each report and document that it is required to preparefor or file with one or more federal agencies pursuant to the provisions ofthat law and the rules and regulations promulgated thereunder. Each regulatedinstitution, as defined in this chapter, to which the Community ReinvestmentAct of 1977, 12 U.S.C. § 2901 et seq., and as subsequently amended fromtime to time, does not apply, shall file with the division of banking anyreports that it may require, but in substantially the same form as the reportsrequired to be filed pursuant to the Community Reinvestment Act by theregulated institutions to which the act applies. Where a regulated institutionhas filed these reports or documents with the division of banking, an update ofthe reports or documents shall be required whenever the regulated institutionrequests the director or the director's designee to take any action on anyapplication to which the provisions of this title apply.
(b) When taking any action on an application made by aregulated institution under this title, the director or the director's designeeshall take into account, among other factors, an assessment, in writing, of therecord of performance of the regulated institution in helping to meet thecredit needs of its entire community, consistent with the safe and soundoperation of the regulated institution and an assessment of the economic impactof the matter that is the subject of the application. The assessment and anywritten communications from the division of banking to a regulated institutionrelating to the assessment shall be made available to the public upon request.In making the assessment, the director or the director's designee shall reviewall reports and documents filed with the division of banking pursuant to thissection and any signed, written comments received by it or the division ofbanking which specifically relate to the regulated institution's performance inhelping to meet the credit needs of its community. In addition, the director orthe director's designee shall consider the following factors in assessing aregulated institution's record of performance:
(1) The most recent public Community Reinvestment Act ratingby the applicable federal banking regulatory agency;
(2) Any practices intended to discourage application fortypes of credit set forth in the regulated institution's Community ReinvestmentAct statement(s);
(3) The geographic distribution of the regulatedinstitution's credit extensions, credit applications, and credit denials;
(4) Evidence of prohibited discriminatory or other illegalcredit practices;
(5) The regulated institution's participation, includinginvestments, in local community development and redevelopment projects orprograms;
(6) The regulated institution's origination of residentialmortgage loans, housing rehabilitation loans, home improvement loans and smallbusiness or small farm loans within its community or the purchase of such loansoriginated in its community;
(7) The regulated institution's participation ingovernmental-insured, guaranteed, or subsidized loan programs for housing,small businesses, or small farms;
(8) The effect of the matter that is the subject of theapplication upon the economy of the neighborhood, city or town, region, orstate, including number of and types of jobs and tax base; and
(9) Other factors that, in the judgment of the director orthe director's designee, reasonably bear upon the extent to which a regulatedinstitution is helping to meet the credit needs and economy of the entirecommunity.
(c) In assessing the record of performance of a regulatedinstitution pursuant to the provision of subsection (b), the director or thedirector's designee may, where he or she deems it appropriate, if not otherwiserequired by law, provide for a public hearing when an objection to theregulated institution's application has been submitted.
(d) An assessment of a regulated institution's record ofperformance under subsection (b) may be the basis for denying an applicationunder the provisions of this section.
(e) When taking an action pursuant to subsection (b), thedirector or the director's designee shall request from the applicant regulatedinstitution, and from the appropriate federal bank regulatory authorities, anydocuments other than those required to be filed with the division of banking bythis section or by other applicable statutes or regulations.
(f) For the purposes of this section only and notwithstandingany other provision of this title or any other law to the contrary, the term"regulated institution" shall not include credit unions whose by-lawssignificantly limit the field of membership, as determined by the director orthe director's designee.
(g) The director or the director's designee is herebyauthorized and empowered to promulgate rules and regulations effectuating theprovisions of this section.