2011 Louisiana Laws
Revised Statutes
TITLE 6 — Banks and banking
RS 6:124.1 — Community reinvestment rating; acceptance of public funds

§124.1. Community reinvestment rating; acceptance of public funds

A. The legislature hereby finds and declares that:

(1) Regulated financial institutions are obligated to demonstrate that their deposit facilities serve the convenience and needs of the communities in which they are chartered to do business.

(2) The convenience and need of communities include the need for credit services as well as deposit services.

(3) Regulated financial institutions have a continuing and affirmative obligation to help meet the credit needs of the local communities in which they are chartered.

(4) Since 1977, the federal Community Reinvestment Act (12 U.S.C. §2901 et seq.) has required that each financial institution receive an annual rating indicating the degree to which the institution has met such community credit needs.

B. Each financial institution shall include in its statement of condition required by R.S. 6:124, at a minimum, a single sentence, printed in boldface type, which states its most recent rating received pursuant to the federal Community Reinvestment Act. Notwithstanding any other provision of R.S. 6:124 to the contrary, such rating need not be included in the financial institution's statement of condition to be submitted to the office of financial institutions.

C.(1) A financial institution may receive public funds for deposit unless that institution has received two consecutive ratings of less than satisfactory under the Community Reinvestment Act of 1977, 12 U.S.C. 2901 et seq.; as provided in R.S. 39:1220(A)(4) or R.S. 49:317. However, any financial institution receiving one rating of less than satisfactory shall, within one year of receiving such a rating, request from the agency responsible for making the rating, another review of the institution's compliance with the Community Reinvestment Act. The request for a re-rating shall be sent to the rating agency by certified mail. Any subsequent re-rating by the rating agency shall be considered a separate rating.

(2) If a financial institution acts as a depository of state funds and receives two consecutive ratings of less than satisfactory under the Community Reinvestment Act of 1977, the institution may continue to hold the public funds until maturity to avoid the imposition of a penalty upon the depositor; however, the institution shall not accept the public funds for reinvestment and shall not accept additional public funds.

(3) The commissioner shall have, in addition to those powers specifically enumerated in this Title, the authority to enforce the provision of this Subsection and R.S. 39:1220(A)(4). Such authority to enforce shall be in accordance with R.S. 6:121.1.

(4) Any financial institution located in one of the state's renewal communities as designated by the governor in the northeast priority zones or targeted areas, and as provided for in the Community Renewal Tax Relief Act of 2000, and which meets the requirements of this Section, shall be given a priority over other financial institutions who meet the requirements of this Section when receiving public funds for deposit.

Acts 1992, No. 776, §1; Acts 1993, No. 509, §1, eff. April 1, 1994; Acts 1994, 3rd Ex. Sess., No. 61, §1, eff. July 6, 1994; Acts 1997, No. 65, §1; Acts 2002, 1st Ex. Sess., No. 162, §1, eff. April 26, 2002.