Form FR H-6 FR H-6 Notifications Related to Community Development and Publi

FR H-6
OMB Number 7100–0278
Expires September 2011

Board of Governors of the Federal Reserve System

Notice of Public Welfare Investments by State Member Banks to
the Federal Reserve System
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.
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
www.federalreserve.gov/CommunityAffairs/cdi/default.htm
• Federal Reserve Bank of San Francisco Center on Community Development Investments www.sf.frb.org/cdinvestments/
index.html
• Office of the Comptroller of the Currency Part 24 Community Development Investments www.occ.treas.gov/cdd/pt24toppage.htm

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 Statutes (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 low-income 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;
Small Business Development—Investing in one or
more small businesses3 located in a low- or moderateincome 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;
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 blocknumbered 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.
3. Small business means a business that meets the size-eligibility
standards of 13 CFR 121.108(a).

FR H-6
Page 3

Checklist for Notice of Public Welfare Investments by State Member Banks that
Do Not Require Prior Approval—Continued
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

Notice of Public Welfare Investments by State Member Banks to
the Federal Reserve System—Continued
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

Notice of Public Welfare Investments by State Member Banks to
the Federal Reserve System—Continued
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 Applications Function
33 Liberty Street
New York, New York 10045

District 8
Federal Reserve Bank of St. Louis
Attn: Banking Supervision Applications Manager
P.O. Box 14831
St. Louis, Missouri 63178

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, 13th Floor
P.O. Box 27622
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