Wyo. Code R. 021-0002-15
Banking Division
Chapter 15: Community Development Investments
Effective Date: 04/18/2014 to Current
Rule Type: Current Rules & Regulations
Reference Number: 021.0002.15.04182014
(a) This Chapter is promulgated in part pursuant to W.S. 13-2-101(a)(xiii) (authorized bank activities) and W.S. 13-3-404(a)(ii).
(b) This Chapter applies only to banks. It authorizes banks to engage in an activity in which national banks may engage, that being to promote the public welfare through investments in community development projects for low- or moderate-income families. The Commissioner has determined that banks should be authorized to engage in such activities to ensure that banks may maintain an equal competitive position with national banks. This Chapter does so while ensuring that such investments do not endanger the safety and soundness of the bank and are consistent with all requirements of law.
As used in this Chapter:
(a) “Area in which the housing project is located” means the smallest geographical subdivision surrounding the site of the qualified housing project for which state income statistics are available. The “area” may be the city or town, county or the state if income statistics for a smaller area adjacent to the qualified housing project are not available.
(b) “Lower income” means income that is less than or equal to the median income in the area in which the qualified housing project is located.
(c) “Qualified housing project” means residential real estate intended to primarily benefit lower income persons throughout the period of the bank’s investment, including:
(i) A project eligible for the low income housing tax credit under section 42 of the Internal Revenue Code of 1986, as amended from time to time; or
(ii) A residential real estate project in which fifty percent (50%) or more of the housing units are occupied or to be occupied by lower income persons.
(d) “Real estate limited partnership” means a limited partnership that
(i) has as its sole purpose the direct or indirect investment in the acquisition, rehabilitation, new construction, management, selling or renting of a qualified housing project and
(ii) satisfies all of the requirements of Section 4.
A bank may invest as a limited partner in a real estate limited partnership.
(a) The real estate limited partnership in which a bank invests as a limited partner shall meet the following criteria:
(i) The limited partnership must operate in the assessment areas delineated by the bank in compliance with 12 C.F.R. 228.41 or 12 C.F.R. 345.41;
(ii) The limited partnership must be structured to limit the bank's liability to an amount not exceeding the bank's capital investment and any specific contingent liabilities, to avoid bank participation in the control of the business of the partnership, and to reflect steps taken by the bank to strictly limit its activities within the partnership, consistent with state law, so that the bank clearly maintains its limited partner status;
(iii) The activities of the limited partnership must be restricted to acquiring, developing, rehabilitating, managing and selling or renting qualified housing projects.
(b) A bank may not invest in shares or equities of a corporation in violation of W.S. 13-3-202.
The investment in a real estate limited partnership may not exceed five percent (5%) of the bank's available capital and reserves, and the bank's aggregate investment in all such partnerships may not exceed ten percent (10%) of its available capital and reserves. Legally binding commitments shall be included as part of the bank's investment.
The community development investments of a bank are subject to examination by the Commissioner. All reports, agreements and documentation necessary to ensure compliance with state and federal laws and regulations shall be provided upon request as provided by W.S. 13-3-701(d).
A community development investment which violates any state or federal law or regulation, or which is inconsistent with safe and sound operation of the bank, or which poses a significant risk of impairment of the bank's available capital, is an unsafe, unsound and unauthorized practice.