PRINTER'S NO. 1232
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
800
Session of
2019
INTRODUCED BY HUGHES, FARNESE, STREET, COSTA, MUTH, L. WILLIAMS,
TARTAGLIONE AND HAYWOOD, OCTOBER 7, 2019
REFERRED TO BANKING AND INSURANCE, OCTOBER 7, 2019
AN ACT
Amending Title 7 (Banks and Banking) of the Pennsylvania
Consolidated Statutes, providing for community reinvestment,
for community reinvestment by banks and for community
reinvestment by nonbank entities.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 7 of the Pennsylvania Consolidated Statutes
is amended by adding a part to read:
PART III
COMMUNITY REINVESTMENT
Chapter
71. Community Reinvestment by Banks
72. Community Reinvestment by Nonbank Entities
CHAPTER 71
COMMUNITY REINVESTMENT BY BANKS
Sec.
7101. Definitions.
7102. Duties of banks.
7103. Duties of department.
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7104. Community reinvestment notice.
7105. Assessment of banks.
7106. Lists of banks by department.
7107. Transaction approval.
§ 7101. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Bank." A banking institution as defined under section 6102
(relating to definitions). The term does not include a special
purpose bank that does not perform commercial or retail banking
services in which credit is granted to the public in the
ordinary course of business, other than as an incident to its
specialized operations, including, but not limited to, banker's
banks and banks that engage only in providing cash management
controlled disbursement services or serving as correspondent
banks, trust companies or clearing agents.
"Community reinvestment laws." The Community Reinvestment
Act of 1977 (91 Stat. 1111, 12 U.S.C. § 2901 et seq.), and the
regulations adopted by the Federal financial supervisory
agencies as provided under 12 CFR Pts. 25 (relating to Community
Reinvestment Act and interstate deposit production regulations),
228 (relating to community reinvestment (Regulation BB)) and 345
(relating to community reinvestment), as applicable to the
specific type of bank.
"Department." The Department of Banking and Securities of
the Commonwealth.
"Federal financial supervisory agency." The Office of the
Comptroller of the Currency, the Board of Governors of the
Federal Reserve System, the Federal Deposit Insurance
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Corporation and any successor to such agencies, as applicable to
the specific type of bank.
§ 7102. Duties of banks.
(a) Local communities.--Each bank shall, in accordance with
the provisions of community reinvestment laws and without
excluding low-income neighborhoods and moderate-income
neighborhoods, delineate the local community or communities that
comprise the bank's entire community within this Commonwealth or
delineate one or more assessment areas, as applicable, within
which the department shall evaluate the bank's record of helping
to meet the credit needs of the entire community. The department
shall review the delineation for compliance with community
reinvestment laws and this subsection in connection with an
examination of the bank under section 401 of the act of May 15,
1933 (P.L.565, No.111), known as the Department of Banking and
Securities Code.
(b) Loan information.--Each bank shall collect and report
loan information in accordance with the applicable requirements
of community investment laws. Each bank shall file with the
department a copy of each disclosure statement prepared for the
bank by a Federal financial supervisory agency under community
investment laws within 30 business days of receiving the
statement.
(c) Public access.--Copies of the public section of the most
recent community reinvestment performance evaluation prepared by
the department under section 7105(b)(2) (relating to assessment
of banks) shall be provided to the public by mail, upon request.
A bank may charge a reasonable fee not to exceed the cost of
copying and mailing, if applicable.
(d) Public file.--Each bank shall maintain a public file in
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accordance with community reinvestment laws. Each bank shall
place a copy of the public section of the bank's most recent
community reinvestment performance evaluation prepared by the
department under section 7105(b)(2) in the public file within 30
business days of receipt from the department. The bank may also
include in the public file any response to the performance
evaluation. The bank shall make a copy of the public section of
the performance evaluation available to the public for
inspection upon request and at no cost at the bank's main office
and at each of its branches in this Commonwealth. A bank that
received a less than satisfactory rating during the bank's most
recent examination under section 7105 shall include in its
public file a description of the bank's current efforts to
improve performance in helping to meet the credit needs of the
entire community. The bank shall update the description
quarterly.
(e) Strategic plan.--The department may assess a bank's
record of helping to meet the credit needs of the bank's
assessment areas under a strategic plan under community
reinvestment laws, provided the strategic plan is filed with the
department concurrently with the strategic plan's submission by
the bank to a Federal financial supervisory agency for approval
under community reinvestment laws, and the strategic plan is
approved by the department.
§ 7103. Duties of department.
The department shall assess the record of each bank in
satisfying the bank's continuing and affirmative obligations to
help meet the credit needs of its local communities, including
low-income neighborhoods and moderate-income neighborhoods and
shall provide for the consideration of the records in connection
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with an application considered under in section 7105(c)
(relating to assessment of banks).
§ 7104. Community reinvestment notice.
(a) Public notice.--Except as provided in subsection (d),
each bank shall provide, in the public lobby of each of its
offices, a public notice substantially similar to the one
provided in this subsection and subsection (b). Bracketed
material shall be used only by a bank having more than one local
community.
COMMUNITY REINVESTMENT NOTICE
Community reinvestment requires the evaluation of our
performance in helping to meet the credit needs of this
community, and to take this evaluation into account when the
Pennsylvania Department of Banking and Securities decides on
certain applications submitted by us.
Your involvement is encouraged.
You should know that:
You may obtain our current Community Reinvestment Statement
for this community in this office. (Current Community
Reinvestment Statements for other communities served by us
are available at our main office, located at:
.....................................)
You may send signed, written comments about our Community
Reinvestment Statement or our performance in helping to meet
community credit needs to (title and address of bank
official) and to the Pennsylvania Department of Banking and
Securities (address). Your letter, together with any
responses by us, may be made public.
You may look at a file of all signed, written comments
received by us within the past two years, any response we
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have made to the comments and all Community Reinvestment
Statements in effect during the past two years at our office
located at (address). You also may look at the file about
this community at (name and address of designated office).
You may ask to look at any comments received by the
Department of Banking and Securities.
(b) Subsidiaries.--If the bank is a subsidiary of a holding
company, the following provision shall be included in the
community reinvestment notice required under subsection (a):
We are a subsidiary of (name of holding company), a
(bank/savings and loan) holding company. You may request
from the (Federal Reserve Bank) of (address) an
announcement of applications covered by the community
reinvestment statement filed by holding companies.
(c) Most recent evaluations.--Except as provided in
subsection (d)(2), within 30 business days of receiving its most
recent community reinvestment performance evaluation prepared by
the department or a Federal financial supervisory agency, each
bank shall add the following provision to the community
reinvestment notice required under subsection (a):
You may obtain the public section of our most recent
community reinvestment performance evaluation at (name
and address of main office and designated community
office).
(d) Additional notice.--
(1) On and after July 1, 2020, in addition to the public
notice required under community reinvestment laws, each bank
shall provide in the public lobby of its main office and each
of its branches in this Commonwealth a public notice
substantially similar to the following:
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COMMONWEALTH OF PENNSYLVANIA
COMMUNITY REINVESTMENT NOTICE
The Pennsylvania Department of Banking and Securities
evaluates our record of helping to meet the credit needs of
this community. The Department of Banking and Securities also
takes this record into account when deciding on certain
applications submitted by us.
Your involvement is encouraged.
In addition to the information that you are entitled to
receive under the Federal Community Reinvestment Act, as
listed in the "Community Reinvestment Act Notice" posted in
this lobby, you may review today the public section of our
most recent community reinvestment performance evaluation
prepared by the Pennsylvania Department of Banking and
Securities.
You may send written comments about our performance in
helping to meet community credit needs to the Pennsylvania
Department of Banking and Securities (address). Your letter,
together with any response by us, will be considered by the
Department of Banking and Securities in evaluating our
community reinvestment performance and may be made public.
You may ask to look at any comments received by the
Department of Banking and Securities.
(2) Notwithstanding the provisions of subsections (a),
(b) and (c), prior to July 1, 2020, a bank may use the form
of public notice provided under paragraph (1) in lieu of the
form of public notice provided under subsections (a), (b) and
(c), if the use is consistent with the form of public notice
required to be used by the bank under community reinvestment
laws.
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(e) Combination of notices.--The information, statements,
evaluations and notices required under this section and section
7102(e) (relating to duties of banks) may be combined with or
attached to the information, statements, evaluations and notices
required under community reinvestment laws.
§ 7105. Assessment of banks.
(a) Factors.--The department shall assess the record of the
performance of the bank in helping to meet the credit needs of
the bank's entire community, including low-income neighborhoods
and moderate-income neighborhoods. The department shall assess
the community reinvestment performance of a bank utilizing the
applicable methodology provided in community reinvestment laws.
In addition, the department shall consider the following in
assessing a bank's record of performance:
(1) The bank's record of offering escrow accounts for
purposes of paying property taxes.
(2) Efforts of the bank to work with delinquent
residential mortgage customers who are unemployed or
underemployed to facilitate a resolution of the delinquency.
(3) The fair housing efforts of the bank in
collaboration with State and local agencies.
(4) The bank's record relating to abusive practices that
result in the loss of affordable housing.
(5) Written comments received by the department.
(b) Community reinvestment performance evaluation.--
(1) Upon the conclusion of the assessment required under
subsection (a), the department shall prepare a written
evaluation of the bank's record of meeting the credit needs
of the bank's entire community, including low-income
neighborhoods and moderate-income neighborhoods. Each
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community reinvestment performance evaluation prepared under
this subsection shall have a public section and a
confidential section.
(2) The public section of the performance evaluation
shall:
(i) State the department's assessment of the
community reinvestment performance of the bank utilizing
the applicable methodology provided under community
reinvestment laws.
(ii) Discuss the facts supporting the assessment.
(iii) Contain the bank's rating and a statement
describing the basis for the rating. The rating shall be
one of the following:
(A) outstanding record of meeting community
credit needs;
(B) high satisfactory record of meeting
community credit needs;
(C) low satisfactory record of meeting community
credit needs;
(D) needs to improve record of meeting community
credit needs; or
(E) substantial noncompliance in meeting
community credit needs.
(3) The department shall provide a copy of the public
portion of the performance evaluation to the bank upon
completion of the evaluation.
(4) The confidential section of the performance
evaluation shall contain all references that identify any
customer of the bank, any employee or officer of the bank or
any person that has provided information in confidence to the
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department or to any Federal financial supervisory agency.
The confidential section shall also contain any statements
obtained or made by the department in the course of an
examination which, in the judgment of the department, are too
sensitive or speculative in nature to disclose to the bank or
the public. The confidential section may be disclosed, in
whole or in part, to the bank if the department determines
that the disclosure will promote the objectives of this
chapter, except that no disclosure shall identify a person
that has provided information in confidence to the department
or to any Federal financial supervisory agency.
(c) Consideration of applications.--In considering an
application for the establishment of a branch or other facility
with the ability to accept deposits, the relocation of the main
office or a branch office or a merger or consolidation with or
the acquisition of assets or stock or assumption of liabilities
of another bank, the department shall consider, but not be
limited to considering, the bank's record of performance. A
bank's record of performance in helping to meet the credit needs
of the bank's community may be the basis for denying or
conditioning such an application.
(d) Rules and regulations.--The department may promulgate
rules and regulations necessary to implement this section.
§ 7106. Lists of banks by department.
The department shall annually prepare and submit to the State
Treasurer a list of banks which have received a rating of low
satisfactory or lower in connection with the community
reinvestment performance evaluation prepared by the department
under section 7105 (relating to assessment of banks) or by a
Federal financial supervisory agency pursuant to community
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reinvestment laws, whichever evaluation is made available most
recently. No bank included on the list may receive deposits from
the State Treasurer. In preparing the list, the department may
rely on information received from a Federal financial
supervisory agency.
§ 7107. Transaction approval.
(a) Compliance requirement.--
(1) The department may not grant any approval under the
act of November 30, 1965 (P.L.847, No.356), known as the
Banking Code of 1965, unless the department finds that:
(i) Based on the most recent applicable performance
evaluation and any related information required by the
department, the entity has a record of compliance with
the requirements of community reinvestment laws, this
chapter, to the extent applicable, and applicable
consumer protection laws.
(ii) Except as otherwise provided in this
subsection, if the entity, and, in the case of an
approval, the bank or any subsidiary bank of the holding
company, received any overall rating other than an
assigned rating of high satisfactory or higher on its
most recent applicable community reinvestment performance
evaluation, the resulting entity will provide adequate
services to meet the banking needs of all community
residents, including low-income residents and moderate-
income residents, to the extent permitted by its charter,
in accordance with the strategic plan submitted by the
applicant to the department in a form and containing the
information as the department may require or, if
acceptable to the department, in accordance with an
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approved strategic plan prepared under community
reinvestment laws that is submitted by the applicant to
the department.
(2) Upon receiving the strategic plan, the department
shall make the plan available for public inspection and
comment at the department. The department shall transmit
notice of the plan's submission and availability for
inspection to the Legislative Reference Bureau for
publication in the Pennsylvania Bulletin and provide for
public comments. With the concurrence of the department, the
applicant shall publish, in the form of a legal advertisement
in a newspaper of general circulation, notice of the plan's
submission and availability for public inspection and
comment. The notice shall state that the inspection and
comment period will last for a period of 30 days from the
date of publication. The department shall not make the
finding until the expiration of the 30-day period.
(3) In making the finding, the department shall, unless
clearly inapplicable, consider, among other factors, whether
the plan:
(i) identifies specific unmet credit and consumer
banking needs in the local community;
(ii) specifies how credit and consumer banking needs
will be satisfied;
(iii) provides for sufficient distribution of
banking services among branches or satellite devices, or
both, located in low-income neighborhoods;
(iv) contains adequate assurances that banking
services will be offered on a nondiscriminatory basis;
and
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(v) demonstrates a commitment to extend credit for
housing, small business and consumer purposes in low-
income neighborhoods.
(4) The submission of the plan shall not be required in
the case of an approval under the Banking Code of 1965, if
the department requires the filing of the information in lieu
of a plan. If the department determines that an applicant is
an eligible entity, the department may exempt the applicant
from the requirement that the applicant file a plan or
require the information in lieu of a plan.
(5) The department shall not approve the transaction if
the transaction would result in a monopoly or would be in
furtherance of any combination or conspiracy to monopolize or
attempt to monopolize the business of banking in this
Commonwealth, or if the department determines that the effect
of the proposed transaction may be to substantially lessen
competition, would tend to create a monopoly or would be in
restraint of trade, unless the department finds that the
anticompetitive effects of the proposed transaction are
clearly outweighed in the public interest by the probable
effect of the transaction in meeting the convenience and
needs of the community to be served.
(b) Determination by department.--
(1) The department shall not make a determination
stating that the department does not disapprove an offer,
invitation, request, agreement or acquisition unless the
department finds that:
(i) Based on the most recent applicable performance
evaluation and any related information required by the
department, the acquiring person, if the person is a
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bank, and the acquiring person's subsidiaries, if the
person is a holding company, has a record of compliance
with the requirements of community reinvestment laws,
this chapter, to the extent applicable, and applicable
consumer protection laws.
(ii) Except as otherwise provided in this
subsection, if the bank or any banking subsidiary of the
holding company referred to in the acquisition statement
received any overall rating other than an assigned rating
of high satisfactory or higher on its most recent
applicable community reinvestment performance evaluation,
the bank or banking subsidiary shall provide adequate
services to meet the banking needs of all community
residents, including low-income residents and moderate-
income residents, to the extent permitted by its charter
or charters.
(2) If the acquiring person is not an individual, or if
the acquiring person is an individual who would be the
beneficial owner of 25% or more of any class of voting
securities of the bank or holding company referred to in the
acquisition statement, the finding as to the adequacy of
services to be provided shall be based on a plan submitted by
the acquiring person to the department, in a form and
containing the information as the department may require, or,
if acceptable to the department, in accordance with an
approved strategic plan prepared under community reinvestment
laws, or the relevant portion thereof, that is submitted by
the acquiring person to the department.
(3) Upon receiving the plan, the department shall make
the plan available for public inspection and comment at the
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department's office. The department shall transmit notice of
the plan's submission and the availability for inspection to
the Legislative Reference Bureau for publication in the
Pennsylvania Bulletin and provide for public comment. With
the concurrence of the department, the acquiring person shall
publish, in the form of a legal advertisement in a newspaper
of general circulation, notice of the plan's submission and
availability for public inspection and comment. The notice
shall state that the inspection and comment period will last
for a period of 30 days from the date of publication. The
department shall not make a finding until the expiration of
the 30-day period.
(4) (i) In making the finding, the department shall
consider, among other factors, whether the plan:
(A) identifies specific unmet credit and
consumer banking needs in the local community;
(B) specifies how the credit and consumer
banking needs will be satisfied;
(C) provides for sufficient distribution of
banking services among branches or satellite devices,
or both, located in low-income neighborhoods;
(D) contains adequate assurances that banking
services will be offered on a nondiscriminatory
basis; and
(E) demonstrates a commitment to extend credit
for housing, small business and consumer purposes in
low-income neighborhoods.
(ii) The department may exempt an acquiring person
from the requirement that the acquiring person file a
plan if the department determines that the bank or
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banking subsidiary referred to in the acquisition
statement is an eligible entity.
(5) If the acquiring person is an individual who would
be the beneficial owner of less than 25% of all classes of
voting securities of the bank or holding company referred to
in the acquisition statement, the department shall make the
finding as to adequacy of services to be provided based on
the commitment of the acquiring person to use the acquiring
person's best efforts to cause the bank or banking
subsidiaries of the holding company to provide the services.
The department shall not make a determination stating that
the department does not disapprove the offer, invitation,
request, agreement or acquisition if the offer, invitation,
request, agreement or acquisition would result in a monopoly
or would be in furtherance of any combination or conspiracy
to monopolize or attempt to monopolize the business of
banking in this Commonwealth, or if the department should
determine that the effect of the proposed offer, invitation,
request, agreement or acquisition may be to substantially
lessen competition, would tend to create a monopoly or would
be in restraint of trade, unless the department finds that
the anticompetitive effects of the proposed transaction are
clearly outweighed in the public interest by the probable
effect of the transaction in meeting the convenience and
needs of the community to be served.
(c) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Eligible entity." An entity which:
(1) Received a composite rating of one or two under the
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Uniform Financial Institutions Rating System as a result of
its most recent safety and soundness examination.
(2) Received a compliance rating of one or two on its
most recent compliance examination.
(3) Received a satisfactory or better rating on its most
recent community reinvestment performance evaluation.
(4) Is well capitalized, as defined in 12 CFR 324.403(b)
(1) (relating to capital measures and capital category
definitions).
(5) Is not subject to a cease and desist order, consent
order, prompt correction action directive, written agreement,
memorandum of understanding or other administrative agreement
with its primary Federal or State banking regulator.
(6) Is not subject to any formal or informal
administrative action by its primary Federal or State banking
regulator.
CHAPTER 72
COMMUNITY REINVESTMENT BY NONBANK ENTITIES
Sec.
7201. Definitions.
7202. Community reinvestment.
7203. Community reinvestment performance evaluation.
7204. Community reinvestment notice.
7205. Effect on certain approvals.
7206. Lists of nonbank entities by department.
§ 7201. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Assessment area." One or more of the geographic areas as
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delineated by a community credit union that:
(1) Consists of one or more metropolitan statistical
areas or one or more contiguous political subdivisions,
including, but not limited to, counties, cities or towns.
(2) Includes geographies in which the community credit
union has its principal office, subsidiary offices and share-
taking automated teller machines.
(3) Includes the surrounding geographies in which the
community credit union originates or purchases a substantial
portion of its loans.
"Community credit union." A Pennsylvania credit union which
has $10,000,000 or more in total assets and the membership of
which is limited to persons within a well-defined community,
neighborhood or rural district.
"Community reinvestment performance." The performance of a
nonbank entity in helping to meet the credit needs of the
community credit union's entire community, including low-income
neighborhoods and moderate-income neighborhoods.
"Mortgage broker." As defined under section 6102 (relating
to definitions).
"Mortgage lender." As defined under section 6102.
"Nonbank entity." A community credit union, a mortgage
broker and a mortgage lender.
§ 7202. Community reinvestment.
(a) General rule.--Each nonbank entity shall satisfy its
continuing and affirmative obligation to help meet the credit
needs of its community, including low-income neighborhoods and
moderate-income neighborhoods.
(b) Evaluation.--Not later than January 1, 2020, each
nonbank entity shall delineate one or more assessment areas
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within which the department shall evaluate the nonbank entity's
community reinvestment performance in this Commonwealth and
shall file the delineations with the department. An assessment
area shall consist only of whole geographies and may not reflect
illegal discrimination, arbitrarily exclude low-income
geographies or moderate-income geographies or extend
substantially beyond a consolidated metropolitan statistical
area boundary or beyond a state boundary, unless the assessment
area is located in a multistate metropolitan statistical area. A
nonbank entity may adjust the boundaries of its assessment areas
to include only the portion of a political subdivision that it
reasonably can be expected to serve. A nonbank entity shall
immediately file an amendment with the department reflecting an
adjustment of the boundaries of an assessment area.
(c) Periodic assessment.--The department shall assess
periodically the community reinvestment performance of a nonbank
entity. The department shall assess the community reinvestment
performance of the nonbank entity based on the following:
(1) The nonbank entity's record of helping to meet the
credit needs of its assessment area or areas through
qualified investments that benefit its assessment area or
areas or a broader Statewide or regional area that includes
its assessment area or areas.
(2) The nonbank entity's record of helping to meet the
credit needs of its assessment area or areas, by analyzing
both the availability and effectiveness of its systems for
delivering retail credit union services and the extent and
innovativeness of its community development services.
(3) The loan-to-share ratio given the nonbank entity's
size and financial condition, credit needs of the assessment
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area or areas, other lending-related activities, considering
seasonal variations, as used in 12 CFR 228.26 (relating to
small bank performance standards).
(4) The percentage of total loans and other lending-
related activities within the assessment area or areas.
(5) The record of lending and other lending-related
activities to borrowers of different income levels and
businesses and farms of different sizes.
(6) The geographic distribution of loans.
(7) The action taken in response to written complaints
with respect to community reinvestment performance.
(8) The efforts of the nonbank entity to work with
delinquent residential mortgage customers who are unemployed
or underemployed to facilitate a resolution of the
delinquency.
(9) The written comments received by the department.
(d) Performance evaluation.--
(1) Upon the completion of the assessment required under
subsection (c), the department shall prepare a written
evaluation of the nonbank entity's community reinvestment
performance.
(2) (i) The performance evaluation shall:
(A) State the department's assessment of the
community reinvestment performance of the nonbank
entity.
(B) Provide and discuss the facts supporting the
assessment.
(C) Contain the nonbank entity's rating and a
statement describing the basis for the rating. The
rating shall be one of the following:
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(I) outstanding record of meeting community
credit needs;
(II) high satisfactory record of meeting
community credit needs;
(III) low satisfactory record of meeting
community credit needs;
(IV) needs to improve record of meeting
community credit needs; or
(V) substantial noncompliance in meeting
community credit needs.
(ii) The department shall furnish a copy of the
performance evaluation to the nonbank entity upon its
completion.
§ 7203. Community reinvestment performance evaluation.
(a) Public access.--Each nonbank entity shall provide to the
public, by mail, upon request copies of the most recent
community reinvestment performance evaluation prepared by the
department under section 7202 (relating to community
reinvestment). A community credit union may charge a reasonable
fee not to exceed the cost of copying and mailing, if
applicable.
(b) Public file.--Each nonbank entity shall maintain a
public file in which it shall place, not later than 30 business
days after its receipt from the department, a copy of the
nonbank entity's most recent community reinvestment performance
evaluation prepared by the department under section 7202. The
nonbank entity may also include in the public file any response
to the performance evaluation that the nonbank entity makes. The
nonbank entity shall make a copy of the performance evaluation
available to the public for inspection upon request and at no
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cost at the nonbank entity's principal office and at each of its
subsidiary offices in this Commonwealth. A nonbank entity that
receives a rating of "low satisfactory record of meeting
community credit needs" or lower on its most recent evaluation
shall include in its public file a description of its current
efforts to improve its performance in helping to meet the credit
needs of the entire community. The nonbank entity shall update
the description quarterly until it receives a "high satisfactory
record of meeting community needs" or better rating from the
department.
§ 7204. Community reinvestment notice.
Each nonbank entity shall provide in the public lobby of its
principal office and each of its subsidiary offices in this
Commonwealth a public notice substantially similar to the
following:
COMMONWEALTH OF PENNSYLVANIA
COMMUNITY REINVESTMENT NOTICE
The Pennsylvania Department of Banking and Securities
evaluates our record of helping to meet the credit needs of
this community. The Pennsylvania Department of Banking and
Securities may also consider this record when deciding on
certain applications submitted by us.
Your involvement is encouraged.
You may review today our most recent community reinvestment
performance evaluation prepared by the Pennsylvania
Department of Banking and Securities.
You may send written comments about our community
reinvestment performance to the Pennsylvania Department of
Banking and Securities (address). Your comments, together
with any response by us, will be considered by the
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Pennsylvania Department of Banking and Securities in
evaluating our community reinvestment performance and may be
made public.
You may ask to look at any comments received by the
Pennsylvania Department of Banking and Securities.
§ 7205. Effect on certain approvals.
The following apply:
(1) The department may consider the community
reinvestment performance of a nonbank entity in connection
with the following:
(i) An approval of an amendment to the certificate
of incorporation under 17 Pa.C.S. (relating to credit
unions).
(ii) An approval of an expansion of its field of
membership under 17 Pa.C.S.
(iii) An approval of a merger under 17 Pa.C.S.
(2) The department may withhold approval of or condition
an issuance of approval of the amendment, expansion or merger
under this section.
§ 7206. Lists of nonbank entities by department.
The following apply:
(1) The department shall annually prepare and submit to
the State Treasurer a list of nonbank entities that the
department rated in a community reinvestment performance
evaluation prepared under section 7202 (relating to community
reinvestment) as follows:
(i) "low satisfactory record of meeting community
credit needs";
(ii) "needs to improve record of meeting community
credit needs"; or
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(iii) "substantial noncompliance in meeting
community credit needs."
(2) No nonbank entity included on the list may receive
money under the provisions of 17 Pa.C.S. (relating to credit
unions).
Section 2. This act shall take effect in 365 days.
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