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                                                        Common
                                                        Good
                                                        BANK
                       COMMUNITY DIVISION POLICIES
                                    Approved By Board of Directors
                                            mm/dd/yyyy


                                                   Contents
                       I.      Purpose ...........................................................1
                       II.     Mission ............................................................1
                       III.    Autonomy. .......................................................1
                       IV.     Limitations .......................................................2
                       V.      Responsibilities of Division Advisors................2
                       VI.     Code of Ethics .................................................3
                       VII.    Lending ............................................................3
                               A.      Considerations ......................................3
                               B.      Non-discrimination Policy ......................3
                               C.      Fair Lending ..........................................3
                               D.      Truth in Lending ....................................3
                       VIII.   Privacy .............................................................3
                       IX.     Definitions ........................................................4


                                           I.        Purpose
These Community Division Policies are intended to guide the Community Division's Advisory
Board in overseeing all Common Good Bank operations in the Community.

                                            II.       Mission
The mission of each Community Division, like that of the Bank, is to promote the Common
Good of the inhabitants of its Community and the Common Good of all people, through
sensible and compassionate community-based democratic economics, competing effectively
with other financial institutions.

                                         III.      Autonomy.
Community Divisions will operate autonomously as much as possible under the law, within
the demands of legal accountability and oversight by Regional Management. Community
Divisions may NOT accept deposits except at a Branch Office. Otherwise Community
Divisions can perform most common good bank functions autonomously, including:



Common Good Bank Community Division Policies         March 8, 2008                                      PAGE: 1
   1. A share of the Bank's profits attributable to the Community Division (as calculated by
      the Bank's computer algorithms) will go into a Community Fund, joined by half of the
      Common Good Rebates given by local Merchants. Local Member Depositors will be
      charged with distributing those profits and rebates to advance the Common Good: half
      in the Community, half to empower people in need elsewhere, with half of that half
      going to empower people outside the country.
   2. Local Member Depositors will also be solely responsible (separately from the Bank) for
      creating local currency credit, by making local grants and by allocating loan funds for
      microloans to local small businesses and entrepreneurs, as guided by Depositor
      Association Rules.
   3. As much as is feasible, a share of the Bank's investment funds proportional to the total
      Bank deposits and stockholdings of local Member Depositors will be available for
      lending within the Community. Regional Management will allocate these funds to the
      Community Division subject to existing loan commitments, the availability of qualified
      borrowers, and overarching policy requirements for cash reserves, loan loss reserves,
      portfolio diversity, and so forth.
   4. Local Member Depositors will also be charged with recommending priorities to the
      Division Advisors, for lending within the Community.

                                       IV.     Limitations
The Community Division and its employees (including Division Advisors) shall not:
   1. Knowingly engage in any activity detrimental to the Common Good, including the
      promotion, manufacture, purchase, use, sale or financing of any product or service
      that is clearly deleterious to the health of the planet or its people or to peaceful
      cooperative relations between all people;
   2. Promote suffering or death;
   3. Deceive or withhold information from anyone, except that confidential information
      about other businesses and confidential personal information about any individual may
      be withheld;
   4. Budget a deficit or habitually spend into deficit.

                    V.      Responsibilities of Division Advisors
   1. Oversee all Community Division operations, guided by these Community Division
      Policies.
   2. Uphold the Community Division's mission and assure its financial soundness. Seek to
      maintain and exceed the minimum requirements for a Community Division. Promote the
      Community Division, subject to pre-approval of materials by Regional Management.
   3. Oversee and assist the Local Depositors Association, including public threshing sessions
      and the Common Good Democracy. Schedule and run an Annual Meeting for the
      Community Division, at a suitable time and place.
   4. Recommend to Regional Management approval or disapproval of loan applications
      submitted by individuals and businesses in the Community.
   5. Oversee any company or employee, including any official volunteers and nonprofit
      organizations, hired by the Bank to assist the Community Division with loan applications,
      opening accounts, check cashing and/or hosting the Bank's local computers.
   6. Act as the Bank's ambassadors to the public, communicating clearly within the
      organization and with the public.



Common Good Bank Community Division Policies    March 8, 2008                           PAGE: 2
                                           VI.     Ethics
Each Division Advisor and every official volunteer and Bank employee must sign and comply
with the Bank's Code of Ethics.

                                          VII.   Lending
A. Considerations
In recommending approval or denial of loan applications, Division Advisors will take into
consideration all factors that may significantly impact the safety and soundness of the Bank
or the Common Good of all. These factors will include, at a minimum:
    1. Loan portfolio diversification
    2. Interest rate risk
    3. Local, regional and national trends and conditions
    4. The well-being of the Bank's customers, the local community, the wider community
       and the world.
B. Non-discrimination Policy
The Common Good Bank will not discriminate in its lending procedures regardless of race,
creed, color, national origin, sexual orientation, military status, age, sex, marital status,
disability, or familial status of any applicant or applicants or any member, stockholder,
director, officer or employee of such applicant or applicants or of the prospective occupants
or tenants of such housing accommodation, land or commercial space associated with its
lending activities. The Common Good Bank will also not discriminate based on the applicant’s
receipt of public assistance, or the borrower's good-faith exercise of rights under the
Consumer Credit Protection Act.

C. Fair Lending
In speaking to a potential borrower, Bank employees, including Division Advisors
    1. Must not ask any questions except the ones on the loan form.
    2. Must not discourage anyone, for any reason, from applying for a loan.
    3. In recommending or disrecommending a loan to Regional Management, must not
       include any comments, information or allusions that might enable the Bank to
       discriminate in any way that is forbidden by the Bank's non-discrimination policy.

D. Truth in Lending
In communicating with potential borrowers, Bank employees, including Division Advisors
    1. Must use only printed materials provided by the Bank.
    2. In responding to inquiries about loan terms, must begin by advising the potential
       borrower that all loans are subject to terms and conditions that are listed on the
       website and in a disclosure pamphlet which the Community Division will provide.

                                          VIII. Privacy
Bank employees, including Division Advisors,
  1. Must not disclose confidential information to anyone for any reason.
  2. Must protect all confidential information from disclosure to a third party.
  3. Must not permit confidential information to be used for anyone's personal benefit.



Common Good Bank Community Division Policies     March 8, 2008                              PAGE: 3
   4. Must provide a privacy notice disclosure to any customer as soon as the customer
      establishes or seeks to establish a relationship with the Bank.

                                        IX.    Definitions
In this policy document, several terms have a special meaning when capitalized, as follows:

Common Good.
  1. First and Foremost, the well-being of every person, including adequate food, clothing,
     shelter, healthcare, education, community, satisfying work, rest, and self-
     determination, empowering those most in need,
  2. Second, peace and justice — a spirit of cooperation and community between all
     people, with compassionate sharing of the world's resources; and
  3. Third, a healthy, sustainable planet, with clean air, clean water, clean earth and a
     healthy and diverse population of animals and plants.

Common Good Rebate. A percentage rebate offered to Depositors by a merchant, on
purchases by Common Good Card, by internet transfer or by Common Good Bank check –
half the rebate going to the customer and half to the Community Fund for the merchant's
Community.

Community. Any contiguous geographic community, sharing a sense of commonality and
normally no larger across in any direction than the distance a person can walk in a day (about
20 miles). For example, the Bank's initial Primary Service Area is a Community and each of
its nine towns is a Community.

Member Depositor. An individual (human) depositor who owns stock in the Bank and has a
Common Good Account. In counting Member Depositors for various minimum requirements,
each person is counted just once and only one Depositor is counted for each account.

Virtual ATM. A merchant who, as a service to the Community, will accept a customer's
Common Good Card, transfer credit from the customer's account to the merchant's account,
and give the customer cash equal in value to the credit transferred, without cost to the
merchant and without charging the customer a fee.




Common Good Bank Community Division Policies   March 8, 2008                            PAGE: 4

				
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