Interagency Q&A .12(t) – 3: Are FHLB stocks or unpaid dividends and membership reserves with the Federal Reserve Banks “qualified investments”?

Compliance > Regulation BB - CRA
Q:  § __.12(t) – 3: Are FHLB stocks or unpaid dividends and membership reserves with the Federal Reserve Banks “qualified investments”?
 
A:  No.  FHLB stocks or unpaid dividends, and membership reserves with the Federal Reserve Banks do not have a sufficient connection to community development to be qualified investments.  However, FHLB member institutions may receive CRA consideration as a community development service for technical assistance they provide on behalf of applicants and recipients of funding from the FHLB’s Affordable Housing Program.  See Q&A § __.12(i) – 3.
 
 
 
This Interagency Q&A, and others, was released in July 2016.  The 2016 Q&As consolidates and supersedes all previously published “Interagency Questions and Answers Regarding Community Reinvestment,” and were noted as being effective immediately.  They may be found here:  http://www.ffiec.gov/cra/qnadoc.htm
 

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