Current through Register 1531, September 27, 2024
(1)
Alternative Election. The Commissioner will assess an
institution's record of helping to meet the credit needs of its assessment
area(s) under a strategic plan if:
(a) the
institution has submitted the plan to the Commissioner as provided for in 209
CMR 46.27;
(b) the Commissioner has
approved the plan;
(c) the plan is
in effect; and
(d) the institution
has been operating under an approved plan for at least one year.
(2)
Data
Reporting. The Commissioner's approval of a plan does not affect
the institution's obligation, if any, to report data as required by
209 CMR
46.42.
(3)
Plans in
General.
(a)
Term. A plan may have a term of no more than five
years, and any multi-year plan must include annual interim measurable goals
under which the Commissioner will evaluate the institution's
performance.
(b)
Multiple Assessment Areas. An institution with more
than one assessment area may prepare a single plan for all of its assessment
areas or one or more plans for one or more of its assessment areas.
(c)
Treatment of
Affiliates. Affiliated institutions may prepare a joint plan if
the plan provides measurable goals for each institution. Activities may be
allocated among institutions at the institutions' option, provided that the
same activities are not considered for more than one institution.
(4)
Public
Participation in Plan Development. Before submitting a plan to the
Commissioner for approval, an institution shall:
(a) informally seek suggestions from members
of the public in its assessment area(s) covered by the plan while developing
the plan;
(b) once the institution
has developed a plan, formally solicit public comment on the plan for at least
30 days by publishing notice in at least one newspaper of general circulation
in each assessment area covered by the plan; and
(c) during the period of formal public
comment, make copies of the plan available for review by the public at no cost
at all offices of the institution in any assessment area covered by the plan
and provide copies of the plan upon request for a reasonable fee to cover
copying and mailing, if applicable.
(5)
Submission of
Plan. The institution shall submit its plan to the Commissioner at
least three months prior to the proposed effective date of the plan. The
institution shall also submit with its plan a description of its informal
efforts to seek suggestions from members of the public, any written public
comment received, and, if the plan was revised in light of the comment
received, the initial plan as released for public comment.
(6)
Plan Content.
(a)
Measurable
Goals.
1. An institution shall
specify in its plan measurable goals for helping to meet the credit needs of
each assessment area covered by the plan, particularly the needs of low- and
moderate-income geographies and low- and moderate-income individuals, through
lending, investment, and services, as appropriate.
2. An institution shall address in its plan
all three performance categories and, unless the institution has been
designated as a wholesale or limited purpose institution, shall emphasize
lending and lending-related activities. Nevertheless, a different emphasis,
including a focus on one or more performance categories, may be appropriate if
responsive to the characteristics and credit needs of its assessment area(s),
considering public comment and the institution's capacity and constraints,
product offerings, and business strategy.
(b)
Confidential
Information. An institution may submit additional information to
the Commissioner on a confidential basis which shall not be deemed a public
record as defined in M.G.L. c. 4, § 7 or be subject to the public
disclosure provisions of M.G.L. c. 66, § 10, but the goals stated in the
plan must be sufficiently specific to enable the public and the Commissioner to
judge the merits of the plan.
(c)
Satisfactory and Outstanding Goals. An institution
shall specify in its plan measurable goals that constitute "satisfactory"
performance. A plan may specify measurable goals that constitute "outstanding"
performance. If an institution submits, and the Commissioner approves, both
"satisfactory" and "outstanding" performance goals, the Commissioner will
consider the institution eligible for an "outstanding" performance
rating.
(d)
Election if
Satisfactory Goals not Substantially Met. An institution may elect
in its plan that, if the institution fails to meet substantially its plan goals
for a satisfactory rating, the Commissioner will evaluate the institution's
performance under the lending, investment, and service tests, the community
development test, or the small institution performance standards, as
appropriate.
(7)
Plan Approval.
(a)
Timing. The Commissioner will act upon a plan within
60 calendar days after the Commissioner receives the complete plan and other
material required under 209 CMR 46.27(5) and (6). If the Commissioner fails to
act within this time period, the plan shall be deemed approved unless the
Commissioner extends the review period for good cause.
(b)
Public
Participation. In evaluating the plan's goals, the Commissioner
considers the public's involvement in formulating the plan, written public
comment on the plan, and any response by the institution to public comment on
the plan.
(c)
Criteria
for Evaluating Plan. The Commissioner evaluates a plan's
measurable goals using the following criteria, as appropriate:
1. the extent and breadth of lending or
lending-related activities, including, as appropriate, the distribution of
loans among different geographies, businesses and farms of different sizes, and
individuals of different income levels, the extent of community development
lending, and the use of innovative or flexible lending practices to address
credit needs;
2. the amount and
innovativeness, complexity, and responsiveness of the institution's qualified
investments; and
3. the
availability and effectiveness of the institution's systems for delivering
retail banking services and the extent and innovativeness of the institution's
community development services.
(8)
Plan Amendment.
During the term of a plan, an institution may request the Commissioner to
approve an amendment to the plan on grounds that there has been a material
change in circumstances. The institution shall develop an amendment to a
previously approved plan in accordance with the public participation
requirements of 209 CMR 46.27(4).
(9)
Plan Assessment.
The Commissioner approves the goals and assesses performance under a plan as
provided for in
209 CMR 46.61.
