Section 185.20  Definitions

 

For purposes of this Part, the following definitions apply:

 

"Affiliate" means any company that controls, is controlled by, or is under common control with another company. The term "control" has the meaning given to that term in 12 U.S.C. 1841(a)(2), and a company is under common control with another company if both companies are directly or indirectly controlled by the same company.

 

"Alternative financial products or services" means financial products or services offered by persons other than an insured depository institution at a higher cost than comparable services offered by an insured depository institution.

 

"Area median income" means:

 

the median family income for the MSA/CBSA, if a person or geography is located in an MSA/CBSA; or

 

the statewide nonmetropolitan median family income, if a person or geography is located outside an MSA/CBSA.

 

"Assessment field" means the persons delineated in accordance with Section 400 as subject to the ILCRA evaluation.

 

"Automated teller machine" or "ATM" means an automated, unstaffed banking facility owned or operated by, or operated exclusively for, the credit union at which deposits are received, cash dispersed, or money lent.

 

"Branch" means a staffed facility established or acquired as a branch under Illinois law.

 

"CBSA" means a core based statistical area as defined by the Director of the Office of Management and Budget.

 

"Community development" means:

 

Affordable housing (including multifamily rental housing) for low- and moderate-income individuals;

 

Community services targeted to low- and moderate-income individuals;

 

Activities that promote economic development by financing businesses or farms that meet the size eligibility standards of the Small Business Administration's Development Company or Small Business Investment Company programs (13 CFR 121.301) or have gross annual revenues of $1 million or less; or

 

Activities that revitalize or stabilize –

 

low- or moderate-income geographies;

 

designated disaster areas; or

 

distressed or underserved nonmetropolitan middle-income geographies designated by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, based on −

 

rates of poverty, unemployment, and population loss; or

 

population size, density, and dispersion. Activities revitalize and stabilize geographies designated based on population size, density, and dispersion if they help to meet essential community needs, including needs of low- and moderate-income individuals; or

 

unbanked or underbanked geographies;

 

Activities targeted to directly and tangibly −

 

increase climate resilience in low-income to moderate-income neighborhoods; or

 

mitigate environmental harm in low-income to moderate-income neighborhoods; and

 

Any other such area as determined by the Secretary based on −

 

Rates of poverty, unemployment, and population loss; or

 

Population size, density, and dispersion. Activities revitalize and stabilize geographies designated based on population size, density, and dispersion if they help to meet essential community needs, including needs of low- and moderate-income individuals.

 

"Community development loan" means a loan that:

 

has as its primary purpose community development; and

 

except in the case of a wholesale or limited purpose credit union:

 

has not been reported or collected by the credit union or an affiliate for consideration in the credit union's assessment as a home mortgage or consumer loan, unless it is a multifamily dwelling loan (as described in Appendix A to 12 CFR 203, the Consumer Financial Protection Bureau's implementing regulations for the Home Mortgage Disclosure Act); and

 

directly or indirectly benefits the credit union's assessment field.

 

"Community development service" means a service that:

 

has as its primary purpose community development;

 

is related to the provision of financial services; and

 

has not been considered in the evaluation of the credit union's retail banking services under Section 185.240(d).

 

"Community Reinvestment Act" unless context indicates otherwise means the Illinois Community Reinvestment Act ("ILCRA").

 

"Consumer loan" means a loan to one or more individuals for household, family, or other personal expenditures. A consumer loan does not include a home mortgage or small business loan. Consumer loans include the following categories of loans:

 

Motor vehicle loan, a consumer loan extended for the purchase of and secured by a motor vehicle;

 

Credit card loan, a line of credit for household, family, or other personal expenditures that is accessed by a borrower's use of a "credit card", as this term is defined in 12 CFR 1026.2;

 

Other secured consumer loan, a secured consumer loan that is not included in one of the other categories of consumer loans; and

 

Other unsecured consumer loan, an unsecured consumer loan that is not included in one of the other categories of consumer loans.

 

"Credit union" means a corporation chartered as a cooperative, non-profit association, incorporated under the Illinois Credit Union Act [205 ILCS 305].

 

"Department" means the Illinois Department of Financial and Professional Regulation.

 

"Field of membership" means the members or persons eligible to join a credit union consisting of members or persons: 

 

within one or more of the following common bonds:  association, occupation or community as defined in 205 ILCS 305; and

 

as otherwise authorized under 205 ILCS 305.

 

"Fiscal year" means the fiscal year for the State of Illinois (starts July 1 and ends June 30).

 

"Geography" means a census tract or a block numbering area delineated by the United States Bureau of the Census in the most recent decennial census.

 

"Home mortgage loan" means a closed-end mortgage loan or an open-end line of credit as these terms are defined under 12 CFR 1003.2 and that is not an excluded transaction under 12 CFR 1003.3(c)(1) through (10) and (13).

 

"Income level" includes:

 

Low-income, an individual income that is less than 50% of the area median income, or a median family income that is less than 50%, in the case of a geography.

 

Moderate-income, an individual income that is at least 50% and less than 80% of the area median income, or a median family income that is at least 50% and less than 80%, in the case of a geography.

 

Middle-income, an individual income that is at least 80% and less than 120% of the area median income, or a median family income that is at least 80% and less than 120%, in the case of a geography.

 

Upper-income, an individual income that is 120% or more of the area median income, or a median family income that is 120% or more, in the case of a geography.

 

"Institution", unless context indicates otherwise, means a credit union.

 

"Limited purpose institution or limited purpose credit union" means an institution that offers only a narrow product line (such as credit card or motor vehicle loans) to a regional or broader market and for which a designation as a limited purpose institution is in effect, in accordance with Section 185.250(b).

 

"Loan location" means a loan is located as follows:

 

a consumer loan is located in the geography where the borrower resides;

 

a home mortgage loan is located in the geography where the property to which the loan relates is located; and

 

a small business loan is located in the geography where the main business facility or farm is located or where the loan proceeds otherwise will be applied, as indicated by the borrower.

 

"Loan production office" means a staffed facility of a credit union, other than a branch, that is open to the public or members and that provides lending-related services, such as loan information and applications.

 

"Metropolitan division" means a metropolitan division as defined by the United States Director of the Office of Management and Budget.

 

"MSA" means a metropolitan statistical area or a primary metropolitan statistical area as defined by the United States Director of the Office of Management and Budget.

 

"Person" means any individual, partnership, joint venture, trust, estate, firm, corporation, cooperative society or association, or any other form of business association or legal entity.

 

"Public lobby" means an area generally accessible to a credit union's members or some of a credit union's members which allows for easy reading of notices in the place of business.

 

"Qualified investment" means a lawful investment, deposit, membership share, or grant that has as its primary purpose community development, and lawful investments include the following:

 

corporations for the purpose of micro-lending in the area of small business and small farms;

 

corporations for the purpose of providing technical assistance to nonprofit housing corporations, small businesses and farms for the purpose of establishing creditworthiness;

 

contributions to any private nonprofit organization organized for improving the social and economic conditions, such as community development and redevelopment programs, small business technical assistance, and educational institutions, in communities in which the credit union has an office; and

 

contributions for the purpose of relieving suffering or distress resulting from disaster or other calamity, such as hurricane or flood, occurring in any part of the State; and

 

contributions to community development and redevelopment programs.

 

"Secretary" means the Secretary or Acting Secretary of the Financial and Professional Regulation and his or her authorized representatives.

 

"Small credit union" means a credit union that, as of December 31 of either of the prior two calendar years, had total assets of less than $391 million.  "Intermediate small credit union" means a credit union with assets of at least $391 million as of December 31 of both of the prior two calendar years and less than $1.564 billion as of December 31 of either of the prior two calendar years.  The asset-size thresholds (dollar figures) for small credit unions and intermediate small credit unions shall be automatically adjusted to remain consistent with the asset-size thresholds in effect for small banks and intermediate small banks as published by the Federal Deposit Insurance Corporation.  The Secretary shall publish each adjustment of the asset-size thresholds for small credit unions and intermediate small credit unions on the Department's website.  "Very Small Credit Union" means a credit union that is eligible for the Very Small Credit Union Examination Procedures set forth in 185.Appendix D pursuant to Section 185.450.

 

"Small business loan" means a loan to a business with gross annual revenues of $1,000,000.00.  For purposes of this Part, small business loan includes small farm loans.

 

"Special Credit Program" means any credit program offered by a credit union to meet special social needs which is in conformity with and explicitly authorized by the Equal Credit Opportunity Act, 15 U.S.C. 1691(c) and Regulation B, 12 CFR 1002.8, and the Illinois Human Rights Act [775 ILCS 5/4-104(C)].

 

"Substantial majority" means a portion of the credit union's lending activity so significant by number and dollar volume of loans that the lending test evaluation would not meaningfully reflect its lending performance if consumer loans were excluded.

 

"Unbanked person" means a person who does not have a checking or savings account with an insured bank, savings bank, or credit union.

 

"Underbanked person" means a person that has a checking or savings account with an insured depository institution but that used alternative financial products or services in the past 12 months.

 

"Wholesale credit union" means a credit union that is not in the business of extending home mortgage, small business, small farm, or consumer loans to retail customers, and for which a designation as a wholesale credit union is in effect, in accordance with Section 185.250(b).