13.1 CRA File Deadlines, Notices and Sunshine Agreements

Public File Maintenance and Delivery Deadlines

Compliance officers must establish operational controls to satisfy regulatory delivery deadlines across branch networks:

• Main Administrative Office: Must maintain a complete public file containing all required documents for all assessment areas across the entire institution.
• Branch Offices: An institution may choose between two permissible compliance methods under 12 CFR § 25.43(b)(2):
  • Method A: Maintain the complete institutional public file at every branch location; OR
  • Method B: Maintain at each branch a copy of the public section of the most recent CRA Performance Evaluation and branch-specific information (services, hours, and branch activity in that specific assessment area), AND provide the complete public file upon request within five business days.
• Website Availability: Banks that operate a public website may make their CRA public file available online. Modernized regulations require large banks to maintain their complete CRA public file on their public website.
• Copying and Reproduction Fees: An institution must furnish hard copies of the public file upon request and may charge only a reasonable fee that does not exceed the actual administrative cost of copying and mailing.

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CRA Public Notice Lobby Posting

Under 12 CFR § 25.44 / § 228.44 / § 345.44, every insured depository institution must post the statutory CRA Public Notice in the public lobby of its main office and in all branch offices. The regulation provides mandatory language (Model Form) that must be tailored depending on whether the institution is a small or large bank:

• Informs the public of the purpose of the CRA;
• Informs consumers of their legal right to inspect the CRA public file;
• Discloses the right to submit written comments regarding community credit needs to the bank and to the supervisory agency; and
• Explains how members of the public can request notification of pending bank corporate applications (such as branch expansions, relocations, or mergers).

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The CRA Sunshine Act (12 CFR Part 35 / Regulation G)

Enacted as Section 48 of the Federal Deposit Insurance Act (12 U.S.C. § 1831y) by the Gramm-Leach-Bliley Act (GLBA) of 1999, the CRA Sunshine Act establishes disclosure and annual reporting requirements for agreements between financial institutions and community organizations.

Legislative Intent

The CRA Sunshine Act was enacted to bring complete transparency to private agreements between banks and community groups. Congress sought to ensure that banks were not entering into undisclosed financial pacts with non-governmental entities in exchange for those entities withdrawing CRA protests or supporting bank merger applications.

Definition of a Covered Agreement

An agreement is classified as a Covered Agreement under 12 CFR § 35.2 / § 207.2 / § 346.2 if it meets four cumulative statutory tests:

1. Parties Involved: The contract, agreement, or understanding is in writing and is entered into by an insured depository institution (or bank affiliate) and a Non-Governmental Entity or Person (NGEP) (such as a community organization, housing advocacy non-profit, or civic association).
2. CRA Fulfillment Connection: The agreement is made pursuant to, or in connection with, the fulfillment of the Community Reinvestment Act (e.g., providing community development loans, investments, or services).
3. Dollar Value Thresholds: The agreement involves:
   • Cash payments, grants, or other considerations with an aggregate value exceeding $10,000 in any calendar year; OR
   • Loans that have an aggregate principal amount exceeding $50,000 in any calendar year.
4. Prerequisite CRA Communication: The agreement must follow a CRA Communication occurring within the prior 12 months (or prior 36 months if regarding an application), such as the NGEP submitting written comments on the bank's CRA performance, testifying at a regulatory hearing, or discussing CRA obligations directly with the bank.

Statutory and Regulatory Exemptions

Under 12 CFR § 35.4, the following transactions are exempt from CRA Sunshine coverage:

• Individual Mortgage Loans: Any residential mortgage loan extended to an individual borrower.
• Ordinary Commercial Loans: Standard commercial loans where the loan is not made at substantially below-market rates and terms, and where the borrower is not an NGEP acting as an intermediary to disburse funds to third parties.
• Standard Vendor Contracts: Arm's-length agreements for goods, routine operational services, or commercial consulting.

Disclosure and annual reporting

Covered agreements must be made available to the public, subject to appropriate protections for confidential information. The bank or affiliate provides its agency either a copy or a list of agreements within 60 days after the end of each calendar quarter; copies listed must be supplied on agency request. A nongovernmental entity or person supplies a copy within 30 days after an agency request. Annual reports are generally due within six months after the end of the reporting party’s fiscal year. Reports describe funds paid or received and their use; parties may use authorized consolidated or joint reporting arrangements. Do not impose one execution-date filing deadline on every party.

A loan to an individual secured by a residence is excluded. Other loans may also be excluded when made at rates not substantially below market and not primarily intended for relending. A charitable donation is not automatically covered merely because the bank claims CRA consideration: the agreement must meet the written agreement, parties, value, CRA fulfillment and qualifying CRA communication conditions. The communication rules have detailed party and timing requirements, so confirm those before determining coverage.

OCC CRA Sunshine regulation and the corresponding Federal Reserve Part 207 and FDIC Part 346 govern these obligations.