CRA Investing
The Community Reinvestment Act (CRA) was enacted by Congress in 1977 and requires the four federal bank supervisory agencies, the Federal Reserve Board ("FRB"), the Office of the Comptroller of the Currency ("OCC"), the Federal Deposit Insurance Corporation ("FDIC"), and the Office of Thrift Supervision ("OTS") to encourage most FDIC-insured financial institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income ("LMI") neighborhoods.
The Fund is a CRA qualified investment and was created to help banks garner positive consideration on the Investment Test portion of their CRA exams. The Fund is an open-end mutual fund that seeks CRA qualified investments in each shareholder's assessment areas.
Once an investment in the Fund is made, the Fund then seeks specific CRA investment(s) in your bank's assessment area(s). The assets of the Fund are actively managed, identifying new investments for each CRA investment exam. The returns and risks are pooled, divided and diversified among all the shareholders. Your institution will receive daily liquidity, monthly dividends, and the diversification of high-credit quality fixed-income securities.
Please see CRA Allocation Process for more information about how the securities in the Fund are allocated to your institution for CRA investment credit.
The information provided herein is not intended as legal or tax advice, nor is it intended as advice as to the compliance with any regulatory requirements; please consult a tax or legal professional regarding such matters.