System and method for assisting a bank in meeting...

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Reexamination Certificate

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C705S035000

Reexamination Certificate

active

07430536

ABSTRACT:
Systems and methods for assisting a bank in meeting all or a portion of the bank's requirements under the Community Reinvestment Act (CRA) on a tax-advantaged basis. New or existing cash value life insurance policies on the lives of employees of the bank or an affiliate of the bank are provided. The cash-value life insurance policies designate the bank, the affiliate or a trust as owner and beneficiary. The assets which support the cash value of the life insurance policies are maintained in a separate account that is protected from general creditors of an issuer of the life insurance policies. The assets in the separate account are used to purchase (i) bank-eligible securities that are qualified investments, which promote community development, as defined under the CRA or (ii) whole loans that are CRA qualified loans, or community development loans, as defined under the CRA. The assets in the account grow on a tax-advantaged basis, and specific qualified investments or loans in the separate account are attributed to the bank to satisfy the requirements of the bank under the CRA.

REFERENCES:
patent: 6073104 (2000-06-01), Field
patent: 6920434 (2005-07-01), Cossette
patent: 2003/0144937 (2003-07-01), Garella et al.
patent: 2004/0167807 (2004-08-01), Fitzsimmons et al.
patent: 2004/0254878 (2004-12-01), Fitzsimmons et al.
“Study: Insurance CRA a success” in the Bay State Banner, Dec. 7, 2000, by Yawu Miller 3 pages attached.
Mylsma, Michael S., “Interpretive Letter #1008, Oct. 2004, 12 USC 2901,” Jul. 19, 2004, Comptroller of the Currency, Administrator of National Banks, Washington, DC, 20219.

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