Disclosure and Reporting of CRA-Related Agreements

§ 207.4

12 CFR Ch. II (1–1–06 Edition)

providing housing and other services in
low- and moderate-income neighborhoods, veterans organization, community theater group, or youth organization, sends a fundraising letter to insured depository institutions and to
other businesses in its community. The
letter encourages all businesses in the
community to meet their obligation to
assist in making the local community
a better place to live and work by supporting the fundraising efforts of the
NGEP.
(iv) Example 4. A NGEP discusses
with an insured depository institution
or affiliate whether particular loans,
services, investments, community development activities, or other activities are generally eligible for consideration by a Federal banking agency
under the CRA. The NGEP and insured
depository institution or affiliate do
not discuss the adequacy of the CRA
performance of the insured depository
institution or affiliate.
(v) Example 5. A NGEP engaged in the
sale or purchase of loans in the secondary market sends a general offering
circular to financial institutions offering to sell or purchase a portfolio of
loans. An insured depository institution that receives the offering circular
discusses with the NGEP the types of
loans included in the loan pool, whether such loans are generally eligible for
consideration under the CRA, and
which loans are made to borrowers in
the institution’s local community. The
NGEP and insured depository institution do not discuss the adequacy of the
institution’s CRA performance.
(d) Multiparty covered agreements. (1)
A NGEP that is a party to a covered
agreement that involves multiple
NGEPs is not required to comply with
the requirements of this part if—
(i) The NGEP has not had a CRA
communication; and
(ii) No representative of the NGEP
identified in paragraph (b)(4) of this
section has knowledge at the time of
the agreement that another NGEP that
is a party to the agreement has had a
CRA communication.
(2) An insured depository institution
or affiliate that is a party to a covered
agreement that involves multiple insured depository institutions or affiliates is not required to comply with the

disclosure and annual reporting requirements in §§ 207.6 and 207.7 if—
(i) No NGEP that is a party to the
agreement has had a CRA communication concerning the insured depository
institution or any affiliate; and
(ii) No representative of the insured
depository institution or any affiliate
identified in paragraph (b)(3) of this
section has knowledge at the time of
the agreement that an NGEP that is a
party to the agreement has had a CRA
communication concerning any other
insured depository institution or affiliate that is a party to the agreement.
§ 207.4

Fulfillment of the CRA.

(a) List of factors that are in fulfillment
of the CRA. Fulfillment of the CRA, for
purposes of this part, means the following list of factors—
(1) Comments to a Federal banking
agency or included in CRA public file.
Providing or refraining from providing
written or oral comments or testimony
to any Federal banking agency concerning the performance under the
CRA of an insured depository institution or CRA affiliate that is a party to
the agreement or an affiliate of a party
to the agreement or written comments
that are required to be included in the
CRA public file of any such insured depository institution; or
(2) Activities given favorable CRA consideration. Performing any of the following activities if the activity is of
the type that is likely to receive favorable consideration by a Federal banking agency in evaluating the performance under the CRA of the insured depository institution that is a party to
the agreement or an affiliate of a party
to the agreement—
(i) Home-purchase, home-improvement, small business, small farm, community development, and consumer
lending, as described in § 228.22 of Regulation BB (12 CFR 228.22), including
loan purchases, loan commitments, and
letters of credit;
(ii) Making investments, deposits, or
grants,
or
acquiring
membership
shares, that have as their primary purpose community development, as described in § 228.23 of Regulation BB (12
CFR 228.23);

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Federal Reserve System

§ 207.6

(iii) Delivering retail banking services, as described in § 228.24(d) of Regulation BB (12 CFR 228.24(d));
(iv) Providing community development services, as described in § 228.24(e)
of Regulation BB (12 CFR 228.24(e));
(v) In the case of a wholesale or limited-purpose insured depository institution, community development lending, including originating and purchasing loans and making loan commitments and letters of credit, making
qualified investments, or providing
community development services, as
described in § 228.25(c) of Regulation BB
(12 CFR 228.25(c));
(vi) In the case of a small insured depository institution, any lending or
other activity described in § 228.26(a) of
Regulation BB (12 CFR 228.26(a)); or
(vii) In the case of an insured depository institution that is evaluated on
the basis of a strategic plan, any element of the strategic plan, as described
in § 228.27(f) of Regulation BB (12 CFR
228.27(f)).
(b) Agreements relating to activities of
CRA affiliates. An insured depository
institution or affiliate that is a party
to a covered agreement that concerns
any activity described in paragraph (a)
of this section of a CRA affiliate must,
prior to the time the agreement is entered into, notify each NGEP that is a
party to the agreement that the agreement concerns a CRA affiliate.
§ 207.5 Related agreements considered
a single agreement.
The following rules must be applied
in determining whether an agreement
is a covered agreement under § 207.2.
(a) Agreements entered into by same
parties. All written agreements to
which an insured depository institution or an affiliate of the insured depository institution is a party shall be
considered to be a single agreement if
the agreements—
(1) Are entered into with the same
NGEP;
(2) Were entered into within the same
12-month period; and
(3) Are each in fulfillment of the
CRA.
(b) Substantively related contracts. All
written contracts to which an insured
depository institution or an affiliate of
the insured depository institution is a

party shall be considered to be a single
agreement, without regard to whether
the other parties to the contracts are
the same or whether each such contract is in fulfillment of the CRA, if
the contracts were negotiated in a coordinated fashion and a NGEP is a
party to each contract.
§ 207.6 Disclosure of covered agreements.
(a) Applicability date. This section applies only to covered agreements entered into after November 12, 1999.
(b) Disclosure of covered agreements to
the public—(1) Disclosure required. Each
NGEP and each insured depository institution or affiliate that enters into a
covered agreement must promptly
make a copy of the covered agreement
available to any individual or entity
upon request.
(2) Nondisclosure of confidential and
proprietary information permitted. In responding to a request for a covered
agreement from any individual or entity under paragraph (b)(1) of this section, a NGEP, insured depository institution, or affiliate may withhold from
public disclosure confidential or proprietary information that the party believes the relevant supervisory agency
could withhold from disclosure under
the Freedom of Information Act (5
U.S.C. 552 et seq.) (FOIA).
(3) Information that must be disclosed.
Notwithstanding paragraph (b)(2) of
this section, a party must disclose any
of the following information that is
contained in a covered agreement—
(i) The names and addresses of the
parties to the agreement;
(ii) The amount of any payments,
fees, loans, or other consideration to be
made or provided by any party to the
agreement;
(iii) Any description of how the funds
or other resources provided under the
agreement are to be used;
(iv) The term of the agreement (if the
agreement establishes a term); and
(v) Any other information that the
relevant supervisory agency determines is not properly exempt from public disclosure.
(4) Request for review of withheld information. Any individual or entity may
request that the relevant supervisory

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§ 207.6

12 CFR Ch. II (1–1–06 Edition)

agency review whether any information in a covered agreement withheld
by a party must be disclosed. Any requests for agency review of withheld
information must be filed, and will be
processed in accordance with, the relevant supervisory agency’s rules concerning the availability of information
(see § 261.12 of the Board’s Rules Regarding the Availability of Information
(12 CFR 261.12)).
(5) Duration of obligation. The obligation to disclose a covered agreement to
the public terminates 12 months after
the end of the term of the agreement.
(6) Reasonable copy and mailing fees.
Each NGEP and each insured depository institution or affiliate may charge
an individual or entity that requests a
copy of a covered agreement a reasonable fee not to exceed the cost of copying and mailing the agreement.
(7) Use of CRA public file by insured depository institution or affiliate. An insured depository institution and any
affiliate of an insured depository institution may fulfill its obligation under
this paragraph (b) by placing a copy of
the covered agreement in the insured
depository institution’s CRA public file
if the institution makes the agreement
available in accordance with the procedures set forth in § 228.43 of Regulation
BB (12 CFR 228.43).
(c) Disclosure by NGEPs of covered
agreements to the relevant supervisory
agency. (1) Each NGEP that is a party
to a covered agreement must provide
the following within 30 days of receiving a request from the relevant supervisory agency—
(i) A complete copy of the agreement;
and
(ii) In the event the NGEP proposes
the withholding of any information
contained in the agreement in accordance with paragraph (b)(2) of this section, a public version of the agreement
that excludes such information and an
explanation justifying the exclusions.
Any public version must include the information described in paragraph (b)(3)
of this section.
(2) The obligation of a NGEP to provide a covered agreement to the relevant supervisory agency terminates 12
months after the end of the term of the
covered agreement.

(d) Disclosure by insured depository institution or affiliate of covered agreements
to the relevant supervisory agency—(1) In
general. Within 60 days of the end of
each calendar quarter, each insured depository institution and affiliate must
provide each relevant supervisory
agency with—
(i)(A) A complete copy of each covered agreement entered into by the insured depository institution or affiliate
during the calendar quarter; and
(B) In the event the institution or affiliate proposes the withholding of any
information contained in the agreement in accordance with paragraph
(b)(2) of this section, a public version of
the agreement that excludes such information (other than any information
described in paragraph (b)(3) of this
section) and an explanation justifying
the exclusions; or
(ii) A list of all covered agreements
entered into by the insured depository
institution or affiliate during the calendar quarter that contains—
(A) The name and address of each insured depository institution or affiliate
that is a party to the agreement;
(B) The name and address of each
NGEP that is a party to the agreement;
(C) The date the agreement was entered into;
(D) The estimated total value of all
payments, fees, loans and other consideration to be provided by the institution or any affiliate of the institution
under the agreement; and
(E) The date the agreement terminates.
(2) Prompt filing of covered agreements
contained in list required. (i) If an insured depository institution or affiliate
files a list of the covered agreements
entered into by the institution or affiliate pursuant to paragraph (d)(1)(ii) of
this section, the institution or affiliate
must provide any relevant supervisory
agency a complete copy and public
version of any covered agreement referenced in the list within 7 calendar
days of receiving a request from the
agency for a copy of the agreement.
(ii) The obligation of an insured depository institution or affiliate to provide a covered agreement to the relevant supervisory agency under this
paragraph (d)(2) terminates 36 months

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Federal Reserve System

§ 207.7

after the end of the term of the agreement.
(3) Joint filings. In the event that 2 or
more insured depository institutions or
affiliates are parties to a covered
agreement, the insured depository institution(s) and affiliate(s) may jointly
file the documents required by this
paragraph (d). Any joint filing must
identify the insured depository institution(s) and affiliate(s) for whom the filings are being made.
§ 207.7 Annual reports.
(a) Applicability date. This section applies only to covered agreements entered into on or after May 12, 2000.
(b) Annual report required. Each
NGEP and each insured depository institution or affiliate that is a party to
a covered agreement must file an annual report with each relevant supervisory agency concerning the disbursement, receipt, and uses of funds or
other resources under the covered
agreement.
(c) Duration of reporting requirement—
(1) NGEPs. A NGEP must file an annual
report for a covered agreement for any
fiscal year in which the NGEP receives
or uses funds or other resources under
the agreement.
(2) Insured depository institutions and
affiliates. An insured depository institution or affiliate must file an annual
report for a covered agreement for any
fiscal year in which the institution or
affiliate—
(i) provides or receives any payments, fees, or loans under the covered
agreement that must be reported under
paragraphs (e)(1)(iii) and (iv) of this
section; or
(ii) has data to report on loans, investments, and services provided by a
party to the covered agreement under
the covered agreement under paragraph (e)(1)(vi) of this section.
(d) Annual reports filed by NGEP—(1)
Contents of report. The annual report
filed by a NGEP under this section
must include the following—
(i) The name and mailing address of
the NGEP filing the report;
(ii) Information sufficient to identify
the covered agreement for which the
annual report is being filed, such as by
providing the names of the parties to
the agreement and the date the agree-

ment was entered into or by providing
a copy of the agreement;
(iii) The amount of funds or resources
received under the covered agreement
during the fiscal year; and
(iv) A detailed, itemized list of how
any funds or resources received by the
NGEP under the covered agreement
were used during the fiscal year, including the total amount used for—
(A) Compensation of officers, directors, and employees;
(B) Administrative expenses;
(C) Travel expenses;
(D) Entertainment expenses;
(E) Payment of consulting and professional fees; and
(F) Other expenses and uses (specify
expense or use).
(2) More detailed reporting of uses of
funds or resources permitted—(i) In general. If a NGEP allocated and used
funds received under a covered agreement for a specific purpose, the NGEP
may fulfill the requirements of paragraph (d)(1)(iv) of this section with respect to such funds by providing—
(A) A brief description of each specific purpose for which the funds or
other resources were used; and
(B) The amount of funds or resources
used during the fiscal year for each
specific purpose.
(ii) Specific purpose defined. A NGEP
allocates and uses funds for a specific
purpose if the NGEP receives and uses
the funds for a purpose that is more
specific and limited than the categories listed in paragraph (d)(1)(iv) of
this section.
(3) Use of other reports. The annual report filed by a NGEP may consist of or
incorporate a report prepared for any
other purpose, such as the Internal
Revenue Service Return of Organization Exempt From Income Tax on
Form 990, or any other Internal Revenue Service form, state tax form, report to members or shareholders, audited or unaudited financial statements, audit report, or other report, so
long as the annual report filed by the
NGEP contains all of the information
required by this paragraph (d).
(4) Consolidated reports permitted. A
NGEP that is a party to 2 or more covered agreements may file with each
relevant supervisory agency a single
consolidated annual report covering all

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§ 207.7

12 CFR Ch. II (1–1–06 Edition)

the covered agreements. Any consolidated report must contain all the information required by this paragraph (d).
The information reported under paragraphs (d)(1)(iv) and (d)(2) of this section may be reported on an aggregate
basis for all covered agreements.
(5) Examples of annual report requirements for NGEPs—(i) Example 1. A NGEP
receives an unrestricted grant of $15,000
under a covered agreement, includes
the funds in its general operating budget and uses the funds during its fiscal
year. The NGEP’s annual report for the
fiscal year must provide the name and
mailing address of the NGEP, information sufficient to identify the covered
agreement, and state that the NGEP
received $15,000 during the fiscal year.
The report must also indicate the total
expenditures made by the NGEP during
the fiscal year for compensation, administrative expenses, travel expenses,
entertainment expenses, consulting
and professional fees, and other expenses and uses. The NGEP’s annual report may provide this information by
submitting an Internal Revenue Service Form 990 that includes the required
information. If the Internal Revenue
Service Form does not include information for all of the required categories listed in this part, the NGEP
must report the total expenditures in
the remaining categories either by providing that information directly or by
providing another form or report that
includes the required information.
(ii) Example 2. An organization receives $15,000 from an insured depository institution under a covered agreement and allocates and uses the $15,000
during the fiscal year to purchase computer equipment to support its functions. The organization’s annual report
must include the name and address of
the organization, information sufficient to identify the agreement, and a
statement that the organization received $15,000 during the year. In addition, since the organization allocated
and used the funds for a specific purpose that is more narrow and limited
than the categories of expenses included in the detailed, itemized list of
expenses, the organization would have
the option of providing either the total
amount it used during the year for
each category of expenses included in

paragraph (d)(1)(iv) of this section, or a
statement that it used the $15,000 to
purchase computer equipment and a
brief description of the equipment purchased.
(iii) Example 3. A community group
receives $50,000 from an insured depository institution under a covered agreement. During its fiscal year, the community group specifically allocates and
uses $5,000 of the funds to pay for a particular business trip and uses the remaining $45,000 for general operating
expenses. The group’s annual report for
the fiscal year must include the name
and address of the group, information
sufficient to identify the agreement,
and a statement that the group received $50,000. Because the group did
not allocate and use all of the funds for
a specific purpose, the group’s annual
report must provide the total amount
of funds it used during the year for
each category of expenses included in
paragraph (d)(1)(iv) of this section. The
group’s annual report also could state
that it used $5,000 for a particular business trip and include a brief description
of the trip.
(iv) Example 4. A community development organization is a party to two
separate covered agreements with two
unaffiliated insured depository institutions. Under each agreement, the organization receives $15,000 during its fiscal year and uses the funds to support
its activities during that year. If the
organization elects to file a consolidated annual report, the consolidated
report must identify the organization
and the two covered agreements, state
that the organization received $15,000
during the fiscal year under each
agreement, and provide the total
amount that the organization used during the year for each category of expenses included in paragraph (d)(1)(iv)
of this section.
(e) Annual report filed by insured depository institution or affiliate—(1) General. The annual report filed by an insured depository institution or affiliate
must include the following—
(i) The name and principal place of
business of the insured depository institution or affiliate filing the report;
(ii) Information sufficient to identify
the covered agreement for which the
annual report is being filed, such as by

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Federal Reserve System

§ 207.8

providing the names of the parties to
the agreement and the date the agreement was entered into or by providing
a copy of the agreement;
(iii) The aggregate amount of payments, aggregate amount of fees, and
aggregate amount of loans provided by
the insured depository institution or
affiliate under the covered agreement
to any other party to the agreement
during the fiscal year;
(iv) The aggregate amount of payments, aggregate amount of fees, and
aggregate amount of loans received by
the insured depository institution or
affiliate under the covered agreement
from any other party to the agreement
during the fiscal year;
(v) A general description of the terms
and conditions of any payments, fees,
or loans reported under paragraphs
(e)(1)(iii) and (iv) of this section, or, in
the event such terms and conditions
are set forth—
(A) In the covered agreement, a
statement identifying the covered
agreement and the date the agreement
(or a list identifying the agreement)
was filed with the relevant supervisory
agency; or
(B) In a previous annual report filed
by the insured depository institution
or affiliate, a statement identifying
the date the report was filed with the
relevant supervisory agency; and
(vi) The aggregate amount and number of loans, aggregate amount and
number of investments, and aggregate
amount of services provided under the
covered agreement to any individual or
entity not a party to the agreement—
(A) By the insured depository institution or affiliate during its fiscal year;
and
(B) By any other party to the agreement, unless such information is not
known to the insured depository institution or affiliate filing the report or
such information is or will be contained in the annual report filed by another party under this section.
(2) Consolidated reports permitted—(i)
Party to multiple agreements. An insured
depository institution or affiliate that
is a party to 2 or more covered agreements may file a single consolidated
annual report with each relevant supervisory agency concerning all the
covered agreements.

(ii) Affiliated entities party to the same
agreement. An insured depository institution and its affiliates that are parties to the same covered agreement
may file a single consolidated annual
report relating to the agreement with
each relevant supervisory agency for
the covered agreement.
(iii) Content of report. Any consolidated annual report must contain all
the information required by this paragraph (e). The amounts and data required to be reported under paragraphs
(e)(1)(iv) and (vi) of this section may be
reported on an aggregate basis for all
covered agreements.
(f) Time and place of filing—(1) General. Each party must file its annual report with each relevant supervisory
agency for the covered agreement no
later than six months following the end
of the fiscal year covered by the report.
(2) Alternative method of fulfilling annual reporting requirement for a NGEP—
(i) A NGEP may fulfill the filing requirements of this section by providing
the following materials to an insured
depository institution or affiliate that
is a party to the agreement no later
than six months following the end of
the NGEP’s fiscal year—
(A) A copy of the NGEP’s annual report required under paragraph (d) of
this section for the fiscal year; and
(B) Written instructions that the insured depository institution or affiliate
promptly forward the annual report to
the relevant supervisory agency or
agencies on behalf of the NGEP.
(ii) An insured depository institution
or affiliate that receives an annual report from a NGEP pursuant to paragraph (f)(2)(i) of this section must file
the report with the relevant supervisory agency or agencies on behalf of
the NGEP within 30 days.
§ 207.8 Release of information under
FOIA.
The Board will make covered agreements and annual reports available to
the public in accordance with the Freedom of Information Act (5 U.S.C. 552 et
seq.) and the Board’s Rules Regarding
the Availability of Information (12 CFR
part 261). A party to a covered agreement may request confidential treatment of proprietary and confidential
information in a covered agreement or

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