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#167033 - 03/05/04 09:39 PM CRA credit?
beegee Offline
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Joined: Feb 2004
Posts: 1,092
South
We have partnered with a local non-profit on an Affordable Housing Program. The FHLB has committed $XXX to the non-profit for help with closing costs. We are on the hook if the loan goes bad within a certain timeframe.

Would this be considered for the Investment Test?

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CRA
#167034 - 03/05/04 10:02 PM Re: CRA credit?
Pale Rider Offline
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Posts: 34,318
under the Lone Star
You can only get credit under the service test for dollars the bank spent, donated, invested, etc. Acting as sponsor at the FHLB will get you service test credit. If a loan goes bad and your bank eats the loss, that could be an investment test credit. Don't you just love CRA !
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Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.


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#167035 - 03/05/04 10:04 PM Re: CRA credit?
Pale Rider Offline
10K Club
Pale Rider
Joined: Aug 2002
Posts: 34,318
under the Lone Star
Oops, obviously, my first reference to "service test" credit should have read "investment test" credit.
_________________________
Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.


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