The Federal Reserve Board has advised limited-purpose credit card banks that they can meet their Community Reinvestment Act obligations by providing community development services and investments.

In a Sept. 6 letter to the Association for Financial Services Holding Companies, Fed Assistant General Counsel Robert de V. Frierson wrote that these institutions may invest in community development companies, provided they don't control more than 5% of the voting stock. They may also lend senior executives to community development groups and make grants to housing activists, he said.

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