§2907 — Title 12 Banks and Banking | U.S. Code

Summary

Banks that give, sell cheaply (as decided by the appropriate federal financial regulator), or let a branch be used rent-free in a mostly-minority neighborhood to a minority or women’s depository institution can have the value of that gift or the loss they take counted when regulators decide if the bank is meeting its community’s credit needs. Minority institution: a bank more than 50 percent owned or controlled by one or more minority individuals and with over 50 percent of its net profit or loss going to them. Women’s depository institution: similar rules for women plus many top managers are women. "Minority" is as defined in section 1204(c)(3) of the Financial Institutions Reform, Recovery and Enforcement Act of 1989.

Title 12, §2907

Banks and Banking — Source: USLM XML via OLRC

(a)In the case of any depository institution which donates, sells on favorable terms (as determined by the appropriate Federal financial supervisory agency), or makes available on a rent-free basis any branch of such institution which is located in any predominantly minority neighborhood to any minority depository institution or women’s depository institution, the amount of the contribution or the amount of the loss incurred in connection with such activity may be a factor in determining whether the depository institution is meeting the credit needs of the institution’s community for purposes of this chapter.

(b)For purposes of this section—

(1)The term “minority institution” 11 So in original. Probably should be “minority depository institution”. means a depository institution (as defined in section 1813(c) of this title)—

(A)more than 50 percent of the ownership or control of which is held by 1 or more minority individuals; and

(B)more than 50 percent of the net profit or loss of which accrues to 1 or more minority individuals.

(2)The term “women’s depository institution” means a depository institution (as defined in section 1813(c) of this title)—

(A)more than 50 percent of the ownership or control of which is held by 1 or more women;

(B)more than 50 percent of the net profit or loss of which accrues to 1 or more women; and

(C)a significant percentage of senior management positions of which are held by women.

(3)The term “minority” has the meaning given to such term by section 1204(c)(3) of the Financial Institutions Reform, Recovery and Enforcement Act of 1989.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1204(c)(3) of the Financial Institutions Reform, Recovery and

Enforcement

Act of 1989, referred to in subsec. (b)(3), is section 1204(c)(3) of Pub. L. 101–73, which is set out as a note under section 1811 of this title.

Amendments

1992—Subsec. (a). Pub. L. 102–550 substituted “may be a factor in determining whether the depository institution is” for “shall be treated as”.

§2907 Operation of Branch Facilities by Minorities and Women