Rhode Island § 19-9-4 - Community Obligations and Banking Offenses

§ 19-9-4. Credit needs of local communities.

(a) Each regulated institution, as defined in this chapter, to which the Community Reinvestment Act of 1977, 12 U.S.C. § 2901 et seq., and as subsequently amended from time to time, applies, shall file with the division of banking, a copy of each report and document that it is required to prepare for or file with one or more federal agencies pursuant to the provisions of that law and the rules and regulations promulgated thereunder. Each regulated institution, as defined in this chapter, to which the Community Reinvestment Act of 1977, 12 U.S.C. § 2901 et seq., and as subsequently amended from time to time, does not apply, shall file with the division of banking any reports that it may require, but in substantially the same form as the reports required to be filed pursuant to the Community Reinvestment Act by the regulated institutions to which the act applies. Where a regulated institution has filed these reports or documents with the division of banking, an update of the reports or documents shall be required whenever the regulated institution requests the director, or the director’s designee, to take any action on any application to which the provisions of this title apply.

(b) When taking any action on an application made by a regulated institution under this title, the director, or the director’s designee, shall take into account, among other factors, an assessment, in writing, of the record of performance of the regulated institution in helping to meet the credit needs of its entire community, consistent with the safe and sound operation of the regulated institution and an assessment of the economic impact of the matter that is the subject of the application. The assessment and any written communications from the division of banking to a regulated institution relating to the assessment shall be made available to the public upon request. In making the assessment, the director, or the director’s designee, shall review all reports and documents filed with the division of banking pursuant to this section and any signed, written comments received by it or the division of banking that specifically relate to the regulated institution’s performance in helping to meet the credit needs of its community. In addition, the director, or the director’s designee, shall consider the following factors in assessing a regulated institution’s record of performance:

(1) The most recent public Community Reinvestment Act rating by the applicable federal banking regulatory agency;

(2) Any practices intended to discourage application for types of credit set forth in the regulated institution’s Community Reinvestment Act statement(s);

(3) The geographic distribution of the regulated institution’s credit extensions, credit applications, and credit denials;

(4) Evidence of prohibited discriminatory or other illegal credit practices;

(5) The regulated institution’s participation, including investments, in local community development and redevelopment projects or programs;

(6) The regulated institution’s origination of residential mortgage loans, housing rehabilitation loans, home improvement loans, and small business or small farm loans within its community or the purchase of such loans originated in its community;

(7) The regulated institution’s participation in governmental-insured, guaranteed, or subsidized loan programs for housing, small businesses, or small farms;

(8) The effect of the matter that is the subject of the application upon the economy of the neighborhood, city or town, region, or state, including number of and types of jobs and tax base; and

(9) Other factors that, in the judgment of the director, or the director’s designee, reasonably bear upon the extent to which a regulated institution is helping to meet the credit needs and economy of the entire community.

(c) In assessing the record of performance of a regulated institution pursuant to the provision of subsection (b), the director, or the director’s designee, may, where he or she deems it appropriate, if not otherwise required by law, provide for a public hearing when an objection to the regulated institution’s application has been submitted.

(d) An assessment of a regulated institution’s record of performance under subsection (b) may be the basis for denying an application under the provisions of this section.

(e) When taking an action pursuant to subsection (b), the director, or the director’s designee, shall request from the applicant-regulated institution, and from the appropriate federal bank regulatory authorities, any documents other than those required to be filed with the division of banking by this section or by other applicable statutes or regulations.

(f) For the purposes of this section only, and notwithstanding any other provision of this title or any other law to the contrary, the term “regulated institution” shall not include credit unions whose bylaws significantly limit the field of membership, as determined by the director, or the director’s designee.

(g) The director, or the director’s designee, is hereby authorized and empowered to promulgate rules and regulations effectuating the provisions of this section.