Minnesota Administrative Rules

2660.0090 DEVELOPMENTAL LOANS.

Subpart 1.

Requirements.

An association located in this state owned by an interstate holding company shall provide a level of developmental loans as defined by the commissioner. A developmental loan includes, but is not limited to: (1) loans for low and moderate income housing, loans to community development corporations, loans to woman- and minority-owned businesses, student education loans, and alternative energy or energy conservation loans; and (2) loans within distressed areas and on any Indian reservation for any commercial nonreal estate purpose, home loans, home improvement loans, and operating loans to family farmers. The commissioner shall annually designate distressed areas. A distressed area may be made for a geographic region smaller than a county within the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. The determination of a distressed area should be made on the area's unemployment rate, economic conditions, and credit needs.

Subp. 2.

Mandatory factors to consider.

The commissioner shall consider the following factors in determining an acceptable level of developmental loans in the community by an applicant through its acquiree:

A.

the level of developmental loans, in terms of number and amount, held by the acquiree at the end of:

(1)

its last calendar quarter immediately before the date of the application; and

(2)

each of the last two calendar years immediately before the date of the application;

B.

the projected level of developmental loans, in terms of number and amount, held at the end of each of the next three calendar years from the date of application;

C.

any developmental investments for the classifications listed under developmental loans held at the time periods described in items A and B;

D.

any developmental loans or developmental investments originated by the acquiree that have been or will be participated in or sold to other institutions during the time periods described in items A and B;

E.

the acquiree's financial condition at the close of the time periods described in items A and B;

F.

the association's asset quality at the close of the time periods described in items A and B;

G.

the economic condition of the community during the time periods described in items A and B;

H.

the asset mix of the association and the socioeconomic makeup of the community in terms of socially and economically disadvantaged persons;

I.

the extent of loans made by the acquiree in its Community Reinvestment Act territories during the time periods described in items A and B; and

J.

the volume of developmental loans made in the community during the time periods described in items A and B.

Statutory Authority:

MS s 45.023; 51A.58

History:

14 SR 2893

Published Electronically:

September 14, 2007