Form FR H-6 FR H-6 Notice of Public Welfare Investments by State Member Ban

FR H-6
OMB Number 7100–0278
Expires September 2008

Board of Governors of the Federal Reserve System

Notice of Public Welfare Investments
by State Member Banks to the Federal Reserve System
Section 208.22 of Regulation H (12 CFR 208.22) permits
Federal Reserve member banks to make certain public welfare investments. Investments that meet the requirements
specified in section 208.22(b) of Regulation H may be made
without prior regulatory approval. To assist it in determining
if a proposed public welfare investment may be made without
prior regulatory approval, a bank, at its option, may use the
checklist attached to this form.
For a public welfare investment not requiring prior
approval, the investing bank must notify the appropriate
Reserve Bank of the investment within 30 days of making the
investment. Such a notice must identify the amount of the
investment and the entity in which the investment is made.
To fulfill this notice requirement, a bank may use this form,
or may provide the required information by way of a letter or
other submission on bank letterhead.
For a public welfare investment requiring prior approval,
the investing bank should not use this form. Instead, the
investing bank must submit (by way of a letter or other submission on bank letterhead) the information specified in section
208.22(d) of Regulation H to the Reserve Bank of which it

is a member. The Board is required to act on a request for
prior approval within 60 days of submission of the required
information, unless the Board notifies the requesting member
bank that a longer time period will be required to review and
act on the request.
Examples of permissible community development and
public welfare investments can be found in the Federal
Reserve System’s Directory of Community Development
Investments at www.federalreserve.gov/dcca/directory/.
Additional information on community development
investments by financial institutions can be found at the
following sites:
• Federal Reserve Board of Governors Regulatory Guidance and Resource Information on Community Development Investments http://www.federalreserve.gov/
CommunityAffairs/cdi/default.htm
• Federal Reserve Bank of San Francisco Center on Community Development Investments http://www.sf.frb.org/
cdinvestments/index.html
• Office of the Comptroller of the Currency Part 24 Community Development Investments http://www.occ.treas.
gov/cdd/pt24toppage.htm

REMINDER
For investments that do not meet one or more of the following criteria,
the investing bank must submit a request for prior approval to the Federal Reserve.
Such a request must include the information specified in section 208.22(d) of Regulation H,
and must be submitted (by way of a letter or other submission on bank letterhead) to
the Federal Reserve Bank of which the investing bank is a member.

FR H-6
Page 2

Checklist for Notice of Public Welfare Investments
by State Member Banks that Do Not Require Prior Approval
Regulation H does not require that this checklist be submitted to the Federal Reserve System. A bank may choose to
use this checklist, however, as an aid in determining if a proposed public welfare investment may be made without prior
regulatory approval. If the bank or the proposed investment does not meet the requirements described in this form, then
the bank must submit a request for prior approval of the investment. Such a request must include the information specified
in section 208.22(d) of Regulation H, and must be submitted (by way of a letter or other submission on bank letterhead) to
the appropriate Federal Reserve Bank, as listed on the final page of this form.

To Make a Public Welfare Investment without Prior Board Approval:
1. The investing bank must meet all of the following
requirements:
The bank is well-capitalized or adequately capitalized
under 12 CFR 208.43(b)(1) and (2);
The bank has received a composite CAMELS rating
of “1” or “2” as of its most recent examination;
The bank has received an overall rating of “1” or “2”
as of its most recent consumer compliance examination; and
The bank is not subject to any written agreement,
cease-and-desist order, capital directive, promptcorrective-action directive, or memorandum of understanding issued by the Board or by a Federal Reserve
Bank.

2. The proposed investment must meet all of the following
requirements:
The investment is permitted by state law;
The investment will not expose the bank to liability
beyond the amount of the investment;
The investment will not cause the bank’s aggregate
public welfare and community development investments to exceed 5 percent of the bank’s capital stock
and surplus; and
The investment is in a corporation, limited partnership, or other entity.

3. The proposed investment must meet one or more of the
following requirements:
The Board has determined that an investment in
that entity or class of entities is a public welfare
investment under paragraph 23 of Section 9 of the
Federal Reserve Act (12 U.S.C. 338a) or community
development investment under Regulation Y (12 CFR
225.127, see also 12 CFR 225.28(12)); OR

The Comptroller of the Currency has determined by
order or regulation that an investment in that entity by
a national bank is a public welfare investment under
section 5136 of the Revised Statues (12 U.S.C. 24
(Eleventh)); OR
The entity in which the investment is to be made
is a community development financial institution as
defined in section 103(5) of the Community Development Banking and Financial Institutions Act of 1994
(12 U.S.C. 4702(5)); OR
The entity in which the investment is to be made
engages, directly or indirectly, solely in or makes
loans solely for the purposes of one or more of the
following community development activities:
Residential Property—Investing in, developing,
rehabilitating, managing, selling, or renting residential property where the majority of the units
will be occupied by low- and moderate-income
persons,1 or if the property is a “qualified lowincome building” as defined in section 42(c)(2) of
the Internal Revenue Code, 26 U.S.C. 42 (c)(2);
Nonresidential Real Property—Investing in,
developing, rehabilitating, managing, selling or
renting nonresidential real property or other
assets located in a low- or moderate-income area2
and targeted toward low- and moderate-income
persons;

1. Low- and moderate-income persons are defined in 42 U.S.C.
5302(a)(20)(A) as families and individuals whose incomes do not
exceed 80 percent of the median income of the area involved, as
determined by the Secretary of Housing and Urban Development with
adjustments for smaller and larger families.
2. Low- or moderate-income area is defined as one or more census
tracts in a Metropolitan Statistical Area (MSA) where the median family
income adjusted for the family size in each census tract is less than
80 percent of the median family income adjusted for family size of
the MSA. If the area is not in a MSA, the definition is one or
more census tracts or block-numbered areas where the median family
income adjusted for family sizes in each census tract or block numbered area is less than 80 percent of the median family income
adjusted for the family size of the state.

FR H-6
Page 3

Checklist for Notice of Public Welfare Investments
by State Member Banks that Do Not Require Prior Approval—Continued
Small Business Development—Investing in one
or more small businesses3 located in a lowor moderate-income area to stimulate economic
development;
Job Training or Placement—Investing in, developing or otherwise assisting job training or placement facilities or programs that will be targeted
towards low- and moderate-income persons;

3. Small business means a business that meets the size-eligibility standards of 13 CFR 121.108(a)

Employment Opportunities—Investing in an
entity located in a low- or moderate-income area
if the entity creates long-term employment opportunities, a majority of which (based on full-time
equivalent positions) will be held by low- and
moderate-income persons;
Technical Assistance—Providing technical
assistance, credit counseling, research, and
program development assistance to low- and
moderate-income persons, small businesses, or
nonprofit corporations to help achieve community
development.

FR H-6
Page 4

REMINDER
Notice must be made to the Federal Reserve within 30 days of making the investment.

Information About the Investing Bank

Bank Contact Information

Bank Name

Name and Title of Contact Person for the Investment

RSSD—Bank's ID#

Street

City

Mailing Address

State

Zip Code

City

State

Zip Code

Telephone Number

Fax Number

E-mail Address

Information About the Investment
Name and Location of the Investment

Amount of the Investment

OPTIONAL: Description of the Investment (Please detail how the investment fulfills the definition of public welfare or community development. Use additional paper if
necessary.)

FR H-6
Page 5

Please submit these forms to your Federal Reserve Bank District
District 1
Federal Reserve Bank of Boston
Supervision, Regulation and Credit Department
Attn: Analytics Unit
P.O. Box 55882
Boston, Massachusetts 02205

District 7
Federal Reserve Bank of Chicago
Supervision & Regulation
Attn: Applications Dept.
230 South La Salle Street
Chicago, Illinois 60604-1413

District 2
Federal Reserve Bank of New York
Attn: Bank Supervision Legal & Compliance Risk Dept.
33 Liberty Street
New York, New York 10045

District 8
Federal Reserve Bank of St. Louis
Attn: Community Affairs Office
P.O. Box 442
St. Louis, Missouri 63166

District 3
Federal Reserve Bank of Philadelphia
Attn: Supervision, Regulation & Credit—
Regulatory Applications
Ten Independence Mall
Philadelphia, Pennsylvania 19106

District 9
Federal Reserve Bank of Minneapolis
Banking Supervision Department
Attn: Applications Manager
P.O. Box 291
90 Hennepin Avenue
Minneapolis, Minnesota 55480

District 4
Federal Reserve Bank of Cleveland
Supervision & Regulation Department
Attn: Consumer Affairs, 5th Floor
P.O. Box 6387
Cleveland, Ohio 44101

District 10
Federal Reserve Bank of Kansas City
Attn: Applications Department
925 Grand Boulevard
Kansas City, Missouri 64198

District 5
Federal Reserve Bank of Richmond
Banking Supervision & Regulation
Attn: Consumer Affairs, 5th Floor
P.O. Box 85029
Richmond, Virginia 23261

District 11
Federal Reserve Bank of Dallas
Banking Supervision Department
Attn: Applications Division, 6th Floor
2200 N. Pearl Street
Dallas, Texas 75201

District 6
Federal Reserve Bank of Atlanta
Division of Supervision & Regulation
Attn: Community Affairs, 8th Floor
1000 Peachtree Street, NE
Atlanta, Georgia 30309-4470

District 12
Federal Reserve Bank of San Francisco
Banking Supervision & Regulation
Attn: Applications Unit, 9th Floor
101 Market Street
San Francisco, California 94105