---
kind: "section"
citation: "12 C.F.R. § 24.2"
title: "12"
number: "24.2"
heading: "Definitions."
url: "https://uscodex.org/cfr/12/24.2"
---

# §24.2. Definitions.


For purposes of this part, the following definitions apply:

- (a) **Adequately capitalized—** has the same meaning as adequately capitalized in [12 CFR 6.4](/cfr/12/6.4.md).
- (b) **Capital and surplus—** means:
  - (1) For qualifying community banking organizations that have elected to use the community bank leverage ratio framework, as set forth under the OCC's Capital Adequacy Standards at [part 3](/cfr/12/part3.md) of this chapter:
    - (i) A qualifying community banking organization's tier 1 capital, as used under [§ 3.12](/cfr/12/3.12.md) of this chapter; plus
    - (ii) A qualifying community banking organization's allowance for loan and lease losses or adjusted allowances for credit losses, as applicable, as reported in the Consolidated Reports of Condition and Income (Call Report); or
  - (2) **For all other national banks—**
    - (i) A bank's tier 1 and tier 2 capital calculated under the OCC's risk-based capital standards set forth in [part 3](/cfr/12/part3.md) of this chapter, as applicable, as reported in the Call Report; plus
    - (ii) The balance of a bank's allowance for loan and lease losses or adjusted allowances for credit losses, as applicable, not included in the bank's tier 2 capital, for purposes of the calculation of risk-based capital described in [paragraph (b)(2)(i)](#b-2-i) of this section, as reported in the Call Report.
- (c) **Community and economic development entity—**
  - (CEDE) means an entity that makes investments or conducts activities that primarily benefit low- and moderate-income individuals, low- and moderate-income areas, or other areas targeted by a governmental entity for redevelopment, or would receive consideration as “qualified investments” under [§ 25.23](/cfr/12/25.23.md) of appendix G to [12 CFR part 25](/cfr/12/part25.md). The following is a non-exclusive list of examples of the types of entities that may be CEDEs:
    - (1) National bank community development corporation subsidiaries;
    - (2) Private or nonbank community development corporations;
    - (3) CDFI Fund-certified Community Development Financial Institutions or Community Development Entities;
    - (4) Limited liability companies or limited partnerships;
    - (5) Community development loan funds or lending consortia;
    - (6) Community development real estate investment trusts;
    - (7) Business development companies;
    - (8) Community development closed-end mutual funds;
    - (9) Non-diversified closed-end investment companies; and
    - (10) **Community development venture or equity capital funds.**
- (d) Community development Project (CD Project) means a project to make an investment that meets the requirements of [§ 24.3](/cfr/12/24.3.md).
- (e) **Eligible bank—** means, for purposes of [§ 24.5](/cfr/12/24.5.md), a national bank that:
  - (1) Is well capitalized;
  - (2) Has a composite rating of 1 or 2 under the Uniform Financial Institutions Rating System;
  - (3) Has a Community Reinvestment Act (CRA) rating of “Outstanding” or “Satisfactory”; and
  - (4) Is not subject to a cease and desist order, consent order, formal written agreement, or Prompt Corrective Action directive (see [12 CFR part 6](/cfr/12/part6.md), [subpart B](/cfr/12/subpartB.md)) or, if subject to any such order, agreement or directive, is informed in writing by the OCC that the bank may be treated as an “eligible bank” for purposes of this part.
- (f) **Low-income and moderate-income—** have the same meanings as “low-income” and “moderate-income” in [§ 25.12(m)](/cfr/12/25.12.md?p=m) of appendix G to [12 CFR part 25](/cfr/12/part25.md).
- (g) Significant risk to the deposit insurance fund means a substantial probability that any Federal deposit insurance fund could suffer a loss.
- (h) Small business means a business, including a small farm or minority-owned small business, that meets the qualifications for Small Business Administration Development Company or Small Business Investment Company loan programs in [13 CFR 121.301](/cfr/13/121.301.md).
- (i) **Well capitalized—** has the same meaning as well capitalized in [12 CFR 6.4](/cfr/12/6.4.md).

## Notes

### Amendments

[61 FR 49660, Sept. 23, 1996, as amended at 68 FR 48775, Aug. 15, 2003; 73 FR 22244, Apr. 24, 2008; 73 FR 46534, Aug. 11, 2008; 79 FR 11312, Feb. 28, 2014; 84 FR 4240, Feb. 14, 2019; 84 FR 61795, Nov. 13, 2019; 84 FR 69298, Dec. 18, 2019; 89 FR 22067, Mar. 29, 2024]

### Authority

Authority: 12 U.S.C. 24(Eleventh), 93a, 481, and 1818.

### Source

Source: 61 FR 49660, Sept. 23, 1996, unless otherwise noted.

### Amendments

[61 FR 49660, Sept. 23, 1996, as amended at 68 FR 48775, Aug. 15, 2003; 73 FR 22244, Apr. 24, 2008; 73 FR 46534, Aug. 11, 2008; 79 FR 11312, Feb. 28, 2014; 84 FR 4240, Feb. 14, 2019; 84 FR 61795, Nov. 13, 2019; 84 FR 69298, Dec. 18, 2019; 89 FR 22067, Mar. 29, 2024]