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Can you summarize 3 NYCRR Part 37?
General Regulations of the Superintendent > Real Estate Equity Investments in Community Development Projects
Short Summary
The provided legal document content pertains to the regulations governing real estate equity investments in community development projects for banks and trust companies in New York. According to the regulations, a bank or trust company’s investment in any one community development project cannot exceed two percent of its capital stock, surplus, and undivided profits. Additionally, the aggregate investment in all such projects cannot exceed ten percent of its capital stock, surplus, and undivided profits. The regulations require that any community development project in which a bank or trust company makes real estate equity investments must primarily serve a public purpose. A project is considered to serve a public purpose if it promotes housing and economic revitalization or development in low and moderate-income areas and directly benefits low and moderate-income residents or small businesses. The determination of whether a project primarily serves a public purpose also takes into account factors such as whether the project primarily benefits the bank’s local service area, the extent of community involvement, including the involvement of community groups in project implementation, and the level of community and public support for the project. The regulations are outlined in section 37.1 and 37.2 of the General Regulations of the Superintendent under the New York Codes, Rules and Regulations (NYCRR) Banking. No specific exemptions or penalties are mentioned in these regulations.
Whom does it apply to?
Banks and trust companies
What does it govern?
Real Estate Equity Investments in Community Development Projects
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New York