Podcast Center
Video Center
Webcasts
Resource Center
Events
November 14, 2006 at 10:43 AM
The manager of a $700 million Community Reinvestment Act fund has developed a bank-owned life insurance arrangement designed for banks that want to use BOLI to meet CRA goals.
CRAFund Advisors, Ft. Lauderdale, Fla., is offering CRA-BOLI, a product that enables banks to use the cash value inside BOLI arrangements to make CRA-qualified investments.
The federal Office of the Comptroller of the Currency and other banking regulators approved the concept of a BOLI-CRA separate account in 2004, according to CRAFund Advisors, which says it has an exclusive patent on the product.
The CRA requires banks to lend to homeowners and businesses in lower-income neighborhoods.
CRAFund Advisors’ CRA-BOLI product gives banks a tax-efficient way to meet CRA investment requirements, the company says.
