A 725k line of credit to a non-profit that specializes in assisting lmi persons attaining homeownership. The collateral is there actual office building. I have a chart that tells me that a permanent loan to a non-profit that is secured by non-farm, non-residential real estate or production payments and in an amount equal to or less than $1 million with or without a primary purpose consistent with the definition of community development is a small business loan. Is an line of credit considered a permanent loan? What does secured by production payments mean? Thanks. I'm still kind of new at this.

A line/loan secured by commercial real estate for a non-profit would be reportable on the CRA LR, so it would not be qualified as a CD loan during your exam. If you're completely desperate (you have nothing in CD loans at exam), you can compile a list of deals that were type 1 and 2, but also had community development impact on your AA, but personally, I'd say this is a waste of time...that is unless you're completely!!! desperate!

Production payments are contracts that ensure payment based on the production of certain items, most typically involved in mineral production or oil and gas. Basically Orin OilBarron gives his production payments (guaranteed by BP) to a non-profit as a donation, which then they use as collateral. As long as the well produces, they receive production payments which are used to pay the loan. These are common in Texas and Alaska, but not often seen elsewhere now a days.