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#157927 - 02/07/04 04:58 PM Commerical RE 60 months or less
Ninky Offline
Gold Star
Joined: Nov 2002
Posts: 357
I am so confused (and new to CRA reporting). Our examiner told us to exclude loans for Nonfarm Nonresidential property, construction and land development with maturities of 60 months or less. Is that no longer true? I just read a thread that has me totally confused.

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#157928 - 02/11/04 08:40 PM Re: Commerical RE 60 months or less

What is the title and date of the thread that was confusing? I'd like to check it out. Your question prompted me to go back and read the call report instructions (ugh!). The exclusion for construction loans used to be applicable to loans with an original maturity of 60 months or less. I don't see that wording anymore. Perhaps that is the change... there is no longer a limitation on the maturity; rather, all construction loans are excluded. Keep in mind that construction loan data can be collected as "other loan data" and made available to examiners when they are on-site. Or... if they meet the definition of community development they can be reported in that category.

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#157929 - 02/12/04 05:28 PM Re: Commerical RE 60 months or less
Geoz Offline
100 Club
Joined: Apr 2003
Posts: 148
What about construction or land development, business purpose loans that are NOT secured by real estate? Can these be reported in RC-C, Part II? Unusual, yes - but what if? My bank has an internal type code for these loan types so I want to make sure we're picking them up correctly for CRA reporting. Thanks!

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#157930 - 02/12/04 08:36 PM Re: Commerical RE 60 months or less
mac Offline
New Poster
Joined: Feb 2004
Posts: 8
Commercial and industrial loans "made to finance construction that are not secured by real estate" are reported in RC-C, Part I, Item 4.... which is one of the two line items included in the definition of small business loan for CRA purposes. While unsecured "land develpment" loans for commercial purposes aren't specifically detailed as an example, I didn't see it included in another category and would tend to think it is also reportable in RC-C, Part I, Item 4, and, threfore, a small business loan for CRA purposes (provided the dollar limit test is met).

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