12 CFR § 1265.1 - Definitions.

---
identifier: "/us/cfr/t12/s1265.1"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 1265.1 - Definitions."
title_number: 12
title_name: "Banks and Banking"
section_number: "1265.1"
section_name: "Definitions."
chapter_name: "FEDERAL HOUSING FINANCE AGENCY"
subchapter_number: "D"
subchapter_name: "FEDERAL HOME LOAN BANKS"
part_number: "1265"
part_name: "CORE MISSION ACTIVITIES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1430, 1430b, 1431, 4511, 4513 and 4526."
regulatory_source: "65 FR 25278, May 1, 2000, unless otherwise noted. Redesignated at 75 FR 8240, Feb. 24, 2010."
cfr_part: "1265"
---


# 1265.1 Definitions.

As used in this part:

*Advance* means a loan from a Bank that is:

(1) Provided pursuant to a written agreement;

(2) Supported by a note or other written evidence of the borrower's obligations; and

(3) Fully secured by collateral in accordance with the Federal Home Loan Bank Act (12 U.S.C. 1421 through 1449) and applicable regulations.

*SBIC* means a small business investment company formed pursuant to section 301 of the Small Business Investment Act (15 U.S.C. 681).

*Targeted income level* means:

(1) For rural areas, incomes at or below 115 percent of the median income for the area, as adjusted for family size in accordance with the methodology of the applicable area median income standard or, at the option of the Bank, for a family of four; and

(2) For urban areas, incomes at or below 100 percent of the median income for the area, as adjusted for family size in accordance with the methodology of the applicable area median income standard or, at the option of the Bank, for a family of four.

[75 FR 8240, Feb. 24, 2010, as amended at 78 FR 2324, Jan. 11, 2013]