Current through Register Vol. 24-18, September 15, 2024
(1)
"Bank" means a commercial bank chartered and regulated under Title
30A RCW, a mutual or stock savings bank chartered and regulated under Title 32
RCW, or a savings association chartered under the provisions of Title 33
RCW.
(2)
"Community
Reinvestment Act" as defined in this chapter shall be identical to the
corresponding definitions set forth in the Community Reinvestment Act of 1977,
12 U.S.C.
2901, et seq. and regulations promulgated
under the Federal Reserve Board's Regulation BB, 12 C.F.R. Part 228 ; provided,
these definitions are not inconsistent with the context used, or otherwise
defined, in this regulation or in chapter 30A.60 RCW.
(3)
"Director" means the
director of the division of banks of the department of financial
institutions.
(4)
"Division" means the division of banks of the department of
financial institutions.
(5)
"Financial subsidiary," in relation to a bank, has the same
meaning that it does in relation to a national bank pursuant to the
Gramm-Leach-Bliley Act of 1999,
12 U.S.C.
93a, et seq. and regulations promulgated
under the Office of the Comptroller of the Currency,
12 C.F.R., Section
5.39(d)(6).
(6)
"Investment grade" means the
issuer of a security has an adequate capacity to meet financial commitments
under the security for the projected life of the asset or exposure. An issuer
has an adequate capacity to meet financial commitments if the risk of default
by the obligor is low and the full and timely repayment of principal and
interest is expected.
(7)
"Investment security" or "investment securities"
means a marketable debt obligation that is investment grade and not
predominantly speculative in nature. Such obligations may be represented by an
indebtedness of any person, copartnership, association, or corporation; an
indebtedness of the government of the United States or any agency thereof; an
indebtedness of any state, or political subdivision thereof; or an indebtedness
of any publicly owned entity that is an instrumentality of a state or municipal
corporation in the form of bonds, notes, and/or debentures.
(8)
"Marketable" means that the
security:
(a) Is registered under the
Securities Act of 1933, 15
U.S.C. 77a et seq.;
(b) Is a municipal revenue bond exempt from
registration under the Securities Act of 1933,
15 U.S.C.
77c(a)(2);
(c) Is offered and sold pursuant to
Securities and Exchange Commission Rule 144A, 17 C.F.R., Sec. 230 . 144A, and
investment grade; or
(d) Can be
sold with reasonable promptness at a price that corresponds reasonably to its
fair value.
(9)
"Qualifying community investment" means any direct or indirect
investment or extension of credit made by a bank in projects or programs
designed to develop or redevelop areas in which persons with low-incomes or
moderate-incomes reside, designed to meet the credit needs of such low-income
or moderate-income areas, or that primarily benefits low-income and
moderate-income residents of such areas.
(a)
This term includes, but is not limited to, any of the following investments
within the state of Washington:
(i)
Investments in governmentally insured, guaranteed, subsidized, or otherwise
sponsored programs for housing, small farms, or businesses that address the
needs of the low-income and moderate-income areas.
(ii) Investments in residential mortgage
loans, home improvement loans, housing rehabilitation loans, and small business
or small farm loans originated in low-income and moderate-income areas, or the
purchase of such loans originated in low-income and moderate-income
areas.
(iii) Investments for the
preservation or revitalization of urban or rural communities in low-income and
moderate-income areas.
(b) The term does not include personal
installment loans, or loans made for the purchase of, or secured by, an
automobile.
(10)
"Type I security" means:
(a)
Obligations of the United States;
(b) Obligations issued, insured, or
guaranteed by a department or agency of the United States, including
obligations of such departments or agencies representing an interest in a loan
or pool of loans;
(c) General
obligations of a state or political subdivision including, but not limited to,
obligations of a county, city, town, municipal corporation, or any publicly
owned entity that is an instrumentality of a state or municipal
corporation;
(d) Obligations of any
state or political subdivision of a state if a state or political subdivision
of a state having general powers of taxation has unconditionally promised to
make sufficient funds available for full repayment of the obligation;
and
(e) Revenue bonds issued by
public improvement agencies.
(11)
"Type II security" means:
(a) Obligations issued by any state or
political subdivision, or any agency of a state or political subdivision for
housing, university or dormitory purposes.
(b) Obligations issued by any state or a
political subdivision for the purpose of financing the construction or
improvement of facilities at or used by a university or a degree-granting
college-level institution, or financing loans for studies at such institutions;
and
(c) Obligations which finance
the construction or improvement of facilities used by a hospital, provided that
the hospital is a department or a division of a university, or otherwise
provides a sufficient nexus with university purposes.
(12)
"Type III security" means
an investment security that does not qualify as a Type I, II, IV, or V
security. Examples of Type III securities include corporate bonds and municipal
bonds that do not satisfy the definition of a Type I security or a Type II
security.
(13)
"Type IV
security" means:
(a) A small
business-related security as defined in section 3 (a)(53)(A) of the Securities
Exchange Act of 1934, 15 U. S.C. 78c (a)(53)(A), that is fully secured by
interests in a pool of loans to numerous obligors.
(b) A commercial mortgage-related security
that is offered or sold pursuant to Section 4(5) of the Securities Act of 1933,
15 U.S.C.
77d(5), that is investment
grade, or a commercial mortgage-related security as described in Section 3
(a)(41) of the Securities Exchange Act of 1934,
15 U.S.C.
78c(a)(41), that represents
ownership of a promissory note or certificate of interest or participation that
is directly secured by a first lien on one or more parcels of real estate upon
which one or more commercial structures are located and that is fully secured
by interests in a pool of loans to numerous obligors.
(c) A residential mortgage-related security
that is offered and sold pursuant to Section 4(5) of the Securities Act of
1933, 15 U.S.C.
77d(5), that is investment
grade, or a residential mortgage-related security as described in Section 3
(a)(41) of the Securities Exchange Act of 1934,
15 U.S.C.
78c(a)(41) that does not
otherwise qualify as a Type I security.
(14)
"Type V security" means a
security that is:
(a) Investment
grade;
(b) Marketable;
(c) Not a Type IV security; and
(d) Fully secured by interests in a pool of
loans to numerous obligors and in which a bank could invest directly.
