Section 46.25 - Community Development Test for Wholesale or Limited-purpose Institutions(1)Scope of Test. The Commissioner assesses a wholesale or limited purpose institution's record of helping to meet the credit needs of its assessment area(s) under the community development test through its community development lending, qualified investments, or community development services.(2)Designation as a Wholesale or Limited Purpose Institution. In order to receive a designation as a wholesale or limited purpose institution, an institution shall file a request, in writing, with the Commissioner, at least three months prior to the proposed effective date of the designation. If the Commissioner approves the designation, it remains in effect until the institution requests revocation of the designation or until one year after the Commissioner notifies the institution that the Commissioner has revoked the designation on his or her own initiative.(3)Performance Criteria. The Commissioner evaluates the community development performance of a wholesale or limited purpose institution pursuant to the following criteria:(a) the number and amount of community development loans (including originations and purchases of loans and other community development loan data provided by the institution, such as data on loans outstanding, commitments, and letters of credit), qualified investments, or community development services;(b) the use of innovative or complex qualified investments, community development loans, or community development services and the extent to which the investments are not routinely provided by private investors; and(c) the institution's responsiveness to credit and community development needs.(4)Indirect Activities. At an institution's option, the Commissioner will consider in its community development performance assessment: (a) qualified investments or community development services provided by an affiliate of the institution, if the investments or services are not claimed by any other institution; and(b) community development lending by affiliates, consortia and third parties, subject to the requirements and limitations in 209 CMR 46.22(3) and (4).(5)Benefit to Assessment Area(s).(a)Benefit Inside Assessment Area(s). The Commissioner considers all qualified investments, community development loans, and community development services that benefit areas within the institution's assessment area(s) or a broader statewide or regional area that includes the institution's assessment area(s).(b)Benefit Outside Assessment Area(s). The Commissioner considers the qualified investments, community development loans, and community development services that benefit areas outside the institution's assessment area(s), if the institution has adequately addressed the needs of its assessment area(s).(6)Community Development Performance Rating. The Commissioner rates an institution's community development performance as provided in 209 CMR 46.61.Amended by Mass Register Issue 1319, eff. 8/12/2016.