Would an investment in a Certified Development Company (CDC)that serves a county that is in our Assessment Area be qualified for CRA? Is there anything that I should be sure to ask before making a decision to invest with them?

CDC in "CRA speak" usually stands for a community development corporation, which is an automatic homerun when it comes to the investment test of the CRA evaluation. What is the purpose or mission statement for this certified development company ? Who is certifying them ? If you know the answers then you can most likely know whether you have a qualified investment for CRA purposes.

I'm confused about your title for a CDC as well. As Don noted, a Community Development Corporation is nearly 100% going to be a slam dunk investment (they need to be serving either your AA or a broader statewide or regional area which includes your AA to slam dunk it)

CDC's (our version as described above) by their nature serve low or mod areas or people or small business development. Some also serve very large businesses but are chartered to provide these services in areas that are low and mod or designated as revitalization or blighted zones. Many!!! were formed this year and last to take advantage of the New Market Tax Credit program.

I always like to see the record of a CDC to which we may lend, invest in, or otherwise become involved. While investing in a CDC will give a bank credit under the CRA, I make sure the CDC is actually doing what they are supposed to be doing. I find there are some CDCs in our local area who take money from the county or state and the banks, yet never build anything or otherise help the community. They usually turn up in the paper a few years later in some expose or another. I never want to face my management where I recommended a large investment into a CDC that turns out to be involved in a later scandal. I also like to request a seat on the board for a bank officer to better help the CDC and also to get the Service Test Credit as well. Just a tip, if you haven't already thought about it already.

To new poster U: I love your name.