Loading...
6-8.5   Failure to Provide Information.
   If any financial institution refuses or fails to provide any of the information described in Subsections 6-8.2 through 6-8.4, inclusive, the Collector-Treasurer shall report the refusal or failure to the Mayor and the City Council. If such institution has previously been designated by the Collector-Treasurer as an eligible financial institution, the City may, upon recommendation of the Mayor and City Council, withdraw such designation. The Collector-Treasurer shall also maintain a list of all financial institutions that refuse or fail to provide information and that list shall be a public record.
(CBC 1985 6-8.5; Ord. 2013 c. 9)
6-8.6   Municipal Banking and Community Reinvestment Commission.
   There shall be, in the city, a Commission known as the Municipal Banking and Community Reinvestment Commission for the purposes of analyzing data and information submitted to the Collector-Treasurer by financial institutions wishing to accept city deposits and contracts for banking services.
   (A)   The Commission shall consist of six members appointed by the Mayor, one member appointed by the Boston City Council President and three ex officio members. The Commission shall consist of the following persons:
      (1)   The Collector-Treasurer of the city ex officio or his or her designee;
      (2)   Two Boston City Council members ex officio appointed by the Boston City Council President and approved by the City Council;
      (3)   One individual from an organization that seeks to address community reinvestment needs;
      (4)   One individual from a nonprofit organization which seeks to address the housing needs in the city;
      (5)   One individual residing in the neighborhoods of the city most affected by redlining activities or underserved by traditional financial institutions;
      (6)   One individual representing a public or quasi-public Agency that has experience in providing loans in city neighborhoods;
      (7)   One individual representing the business community; provided that if an appointed individual is an employee of a financial institution then that institution is disqualified from contracting with the city for banking services or designation as a city depository;
      (8)   One individual representing a labor organization or union; and
      (9)   One interested member of the public appointed by the Boston City Council President and approved by the City Council.
   (B)   The term for each member shall be three years; provided, however, that of the members first appointed to the Commission, two shall serve for two years and two shall serve for one year. Thereafter, the Mayor or, if applicable, the Boston City Council President with approval by the Boston City Council shall appoint each successor to a term of three years. Any vacancy occurring otherwise than by expiration of term shall be filled by an appointment of the Mayor or, if applicable, the Boston City Council President with approval by the Boston City Council for the unexpired term. The Chair shall be elected by the members of the Commission from among the non-ex officio members of the Commission.
   (C)   The Commission shall meet at least twice annually.
   (D)   All members of the Commission shall be residents of the city at the time of their appointment and throughout their tenure. The members may not otherwise be employees of the city or on its payroll, but shall be special municipal employees for the purposes of M.G.L. Chapter 268A. The members shall serve without compensation; provided, however, that each member may be reimbursed by the Commission for all expenses reasonably incurred by them in the performance of their duties.
   (E)   The Commission shall submit an annual report to the Mayor and the Boston City Council evaluating financial institutions that seek contracts for banking services with the city, or that seek to be designated as city depositories, and recommend to the Collector-Treasurer those institutions whose performances best reflect the city’s goal of community reinvestment. The report shall contain a description of the scoring and ranking system and the criteria and methodology by which points in each category, pursuant to Subsection 6-8.7, are awarded to or deducted from a financial institution.
   (F)   In anticipation of this annual report, the Commission shall hold a hearing for public testimony and receive written comments tor 30 days prior to the hearing. At the hearing, the public may testify concerning the efforts and extent to which the deposit banks are meeting the banking needs of the city’s low and moderate income individuals as well as comment on any data collected and posted online pursuant to Subsection 6-8.8. A summary of comments collected and any role played by such comments in the annual report shall be included in the annual report.
   (G)   The Commission shall be authorized to receive information from whistleblowers regarding fraud, abuse, waste or misuse of city funds by a financial institution holding such funds, and to ensure that no reprisal is taken against any such employee. The Commission shall establish whistle blowing procedures to further the purposes of this Subsection.
   (H)   The Commission shall be authorized to investigate the accuracy of any information it receives pursuant to any whistleblower procedures, and to make its findings public within 14 days of determining that city funds are being subject to fraud, waste, abuse or misuse by the financial institution.
(CBC 1985 6-8.6; Ord. 2013 c. 9)
6-8.7   Evaluation of Data; Community Reinvestment Performance.
   (A)   Consistent with Subsection 6-8.6(E), the Commission’s report and recommendations shall be based on review of the information submitted required by Subsections 6-3.2 through 6-8.4, inclusive.
   (B)   The Commission shall devise a scoring and ranking system that will evaluate the lending and banking practices of each financial institution that desires a contract for banking services with the city or wishes to begin or maintain a business relationship with the city as a city depository. Each such financial institution shall be ranked against its peers and be scored on a scale of zero to 100 total points, which shall then be known as the financial institution’s Community Reinvestment Score.
      (1)   Each financial institution will be evaluated in five categories, each earning 20 points towards its total point score, which shall include the following:
         (a)   Residential and mortgage lending performance, which shall be determined utilizing information submitted pursuant to Subsection 6-8.2(A)(l) through (9) and (15);
         (b)   Small business lending performance, which shall be determined utilizing information submitted pursuant Subsection 6-8.2(A)(10) and (15);
         (c)   Community reinvestment performance, which shall be determined utilizing information submitted pursuant to Subsections 6-8.2(A)(11) and (15);
         (d)   Personal lending performance, which shall be determined utilizing information submitted pursuant to Subsection 6-8.2(A)(12), (13) and (15), and Subsection 6-8.2(B)(4) and (5); and
         (e)   Boston resident lending and hiring performance, which shall be determined utilizing information submitted pursuant to Subsection 6-8.2 as a whole, Subsection 6-8.2(B)(2) specifically and Subsection 6-8.2(A)(15).
      (2)   Each financial institution may be awarded additional points for the following:
         (a)   Compliance with commonwealth usury laws, M.G.L. Chapter 140, Section 114B;
         (b)   Confirmation that no steps were taken in the prior year to evict from residential property in the city obtained via foreclosure, other than for “just cause” as that term is defined in M.G.L. Chapter 186A, any occupants of such property, whether those occupants are the former owners of the property or tenants of the former owners; and
         (c)   Other factors as may be determined by the Commission.
      (3)   Each financial institution may be deducted points for the following:
         (a)   Unreasonable percentage of default in any of the five categories identified in division (A) above;
         (b)   Excessive charge of overdraft fees, as determined by the Commission;
         (c)   Use of unfair marketing practices targeted at financially vulnerable populations, as determined by the Commission;
         (d)   Unfair discrimination or retaliation against employees who bring forth evidence of acts that they reasonably believe constitute a fraud, abuse, misuse or waste of city funds on deposit by a financial institution contracted with for banking services with the city or designated as a city depository under this Section;
         (e)   Eviction from foreclosed or otherwise distressed residential property in the city of which the institution, or its parent or subsidiary, is the owner, or such property owned by an entity for which the institution is the servicer, trustee or Agent other than for “just cause”, any occupants of such property, whether those occupants are the former owners of the property or tenants of the former owners; and
         (f)   Other factors as may be determined by the Commission.
   (C)   Each financial institution’s rank and score shall be disclosed publicly pursuant to Subsection 6-8.8.
(CBC 1985 6-8.7; Ord. 2013 c. 9)
Loading...