RSK.IQ

Paycheck Protection Program and CRA

Issue/Inquiry

The Bank has participated in the Paycheck Protection Program. It has not obtained information for the annual gross revenues of the borrowers to whom it has made such loans. Recently, the Bank has learned that the federal regulators require financial institutions to obtain this information, or else the loans cannot be reported for Community Reinvestment Act (“CRA”) purposes. Since the Bank is a small bank for CRA reporting purposes, is this requirement still applicable?

CAN-SPAM Act and Opting Out

Issue/Inquiry

The Bank would like clarification as to what is considered as “unsolicited e-mail” under the federal CAN-SPAM Act of 2003 (“CAM-SPAM Act”). Since the Bank uses different campaigns, can it send a recipient who has unsubscribed from one campaign an e-mail from another sender address? In addition, is the Bank obligated to send confirmation to someone who has unsubscribed?

Timeliness of Force Placed Flood Insurance Notice

Issue/Inquiry

The Bank did not notify the borrower that there was a lapse in the flood insurance coverage of the property securing the loan until 26 days after the policy expired. The borrower then obtained flood coverage 38 days after the notification. Although the Bank maintains a list of loans secured by improved real property located in Special Flood Hazard Areas (“SFHA”), it does not track the expiration date of the flood insurance policies covering these properties.