[mginder]

What is a CRA covered-agreement?

[Brent V]

As defined in the CRA Sunshine Regulations “Covered Agreement” is any contract, arrangement, or
understanding that meets all of the following criteria:

1. The agreement is in writing.
2. The parties to the agreement include:
a. One or more insured depository institutions or affiliates of an insured
depository institution; and
b. One or more NGEPs.
3. The agreement provides for the insured depository institution or any affiliate to:
a. Provide to one or more individuals or entities (whether or not parties to
the agreement) cash payments, grants, or other consideration (except loans)
that have an aggregate value of more than $10,000 in any calendar year; or
b. Make to one or more individuals or entities (whether or not parties to the
agreement) loans that have an aggregate principal amount of more than
$50,000 in any calendar year.
4. The agreement is made pursuant to, or in connection with, the fulfillment of the CRA.
5. The agreement is with a NGEP that has had a CRA communication prior to entering into the agreement.

A “Covered Agreement” does not include:

1. Any individual loan that is secured by real estate; or
2. Any specific contract or commitment for a loan or extension of credit to an individual, business, farm, or other entity, or group of such individuals or entities if:
a. The funds are loaned at rates that are not substantially below market rates;
and
b. The loan application or other loan documentation does not indicate that the
borrower intends or is authorized to use the borrowed funds to make a loan
or extension of credit to one or more third parties.

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