What obligation does a bank have to disclose a covered CRA agreement 40 months after it terminates?
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A. B. C. D.D
Under the Community Reinvestment Act (CRA), banks are required to help meet the credit needs of their entire community, including low- and moderate-income neighborhoods. The CRA also requires banks to enter into agreements with community organizations, known as covered CRA agreements, to demonstrate their commitment to serving the credit needs of their community.
In terms of disclosure requirements for covered CRA agreements, banks must maintain a copy of the agreement in their CRA public file for at least three years after the agreement terminates. Additionally, banks must provide a copy of the agreement to their regulatory agency upon request. This information is intended to be used by regulatory agencies to monitor banks' compliance with the CRA.
Furthermore, a member of the public can request a copy of a covered CRA agreement from the bank. However, the bank is only required to provide a copy if the agreement is still in effect or if it has been terminated within the past two years. If the agreement has been terminated more than two years ago but less than five years ago, the bank is not required to provide a copy unless the member of the public can demonstrate a continuing need for the information.
In summary, the correct answer to the question is A. The bank must maintain a copy of the covered CRA agreement in its CRA public file for at least three years after the agreement terminates. The bank must also provide a copy of the agreement to its regulatory agency upon request. While a member of the public can request a copy of the agreement, the bank is not required to provide it if the agreement has been terminated more than two years ago but less than five years ago, unless the member of the public can demonstrate a continuing need for the information.