US (United States) Code. Title 12. Chapter 47: Community Development Banking

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Banks and banking

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12 USC CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

.

-HEAD-

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

-MISC1-

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

Sec.

4701. Findings and purposes.

(a) Findings.

(b) Purpose.

4702. Definitions.

4703. Establishment of national Fund for community development

banking.

(a) Establishment.

(b) Management of Fund.

(c) General powers.

(d) Advisory Board.

(e) Omitted.

(f) Government Corporation Control Act exemption.

(g) Limitation of Fund and Federal liability.

(h) Prohibition on issuance of securities.

(i) Omitted.

(j) Assisted institutions not United States

instrumentalities.

(k) Transition period.

4704. Applications for assistance.

(a) Form and procedures.

(b) Minimum requirements.

(c) Preapplication outreach program.

4705. Community partnerships.

(a) Application.

(b) Application requirements.

(c) Selection criteria.

(d) Limitation on distribution of assistance.

(e) Other requirements and limitations.

4706. Selection of institutions.

(a) Selection criteria.

(b) Geographic diversity.

4707. Assistance provided by Fund.

(a) Forms of assistance.

(b) Uses of financial assistance.

(c) Uses of technical assistance.

(d) Amount of assistance.

(e) Matching requirements.

(f) Terms and conditions.

(g) Authority to sell equity investments and loans.

(h) No authority to limit supervision and regulation.

4708. Training.

(a) In general.

(b) Program activities.

(c) Participation.

(d) Contracting.

(e) Coordination.

(f) Regulatory fee for providing training services.

4709. Encouragement of private entities.

4710. Collection and compilation of information.

4711. Investment of receipts and proceeds.

(a) Establishment of account.

(b) Investments.

(c) Availability.

4712. Capitalization assistance to enhance liquidity.

(a) Assistance.

(b) Selection.

(c) Amount of assistance.

(d) Audit and report requirements.

(e) Limitations on liability.

(f) Use of proceeds.

4713. Incentives for depository institution participation.

(a) Function of Administrator.

(b) Provisions relating to administration of this

section.

4714. Recordkeeping.

(a) In general.

(b) User profile information.

(c) Access to records.

(d) Review.

(e) Reporting.

4715. Special provisions with respect to institutions that are

supervised by Federal banking agencies.

(a) Consultation with appropriate agencies.

(b) Requests for information, reports, or records.

(c) Exclusion for examination reports.

(d) Sharing of information.

(e) Disclosure prohibited.

(f) Privilege maintained.

(g) Exceptions.

(h) Sanctions.

(i) Safety and soundness considerations.

4716. Studies and reports; examination and audit.

(a) Annual report by Fund.

(b) Optional studies.

(c) Native American lending study.

(d) Investment, governance, and role of Fund.

(e) Consultation.

(f) Examination and audit.

4717. Enforcement.

(a) Regulations.

(b) Administrative enforcement.

4718. Authorization of appropriations.

(a) Fund authorization.

(b) Community Development Credit Union Revolving Loan

Fund.

(c) Budgetary treatment.

SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

4741. Findings and purposes.

(a) Findings.

(b) Purposes.

4742. Definitions.

4743. Approving States for participation.

(a) Application.

(b) Approval criteria.

(c) Existing State programs.

(d) Prior appropriations requirement.

(e) Amendments to agreements.

4744. Participation agreements.

(a) In general.

(b) Participating financial institutions.

4745. Terms of participation agreements.

(a) In general.

(b) Establishment of separate reserve funds.

(c) Investment authority.

(d) Earned income and interest.

(e) Loan terms and conditions.

(f) Enrollment process.

(g) Coverage amount.

(h) Premium charges.

(i) Restrictions.

(j) State contributions.

(k) Submission of claims.

(l) Elements of claims.

(m) Payment of claims.

(n) Denial of claims.

(o) Subsequent recovery of claim amount.

(p) Participation agreement terms.

(q) Termination clause.

(r) Allowable withdrawals from fund.

(s) Grandfathered provision.

4746. Reports.

(a) Reserve funds report.

(b) Annual data.

(c) Form.

4747. Reimbursement by Fund.

(a) Reimbursements.

(b) Size of assisted borrower.

(c) Three-year maximum.

(d) Loans totaling less than $2,000,000.

(e) Loans totaling more than $2,000,000.

(f) Other amounts.

4748. Reimbursement to Fund.

(a) In general.

(b) Factor.

(c) Use of reimbursements.

4749. Regulations.

4750. Authorization of appropriations.

(a) Amount.

(b) Budgetary treatment.

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12 USC SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND

FINANCIAL INSTITUTIONS 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

.

-HEAD-

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in title 15 section 6908.

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12 USC Sec. 4701 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4701. Findings and purposes

-STATUTE-

(a) Findings

The Congress finds that -

(1) many of the Nation's urban, rural, and Native American

communities face critical social and economic problems arising in

part from the lack of economic growth, people living in poverty,

and the lack of employment and other opportunities;

(2) the restoration and maintenance of the economies of these

communities will require coordinated development strategies,

intensive supportive services, and increased access to equity

investments and loans for development activities, including

investment in businesses, housing, commercial real estate, human

development, and other activities that promote the long-term

economic and social viability of the community; and

(3) community development financial institutions have proven

their ability to identify and respond to community needs for

equity investments, loans, and development services.

(b) Purpose

The purpose of this subchapter is to create a Community

Development Financial Institutions Fund to promote economic

revitalization and community development through investment in and

assistance to community development financial institutions,

including enhancing the liquidity of community development

financial institutions.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 102, Sept. 23, 1994, 108 Stat.

2163.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in subsec. (b), was in original

''this subtitle'', meaning subtitle A of title I of Pub. L.

103-325, Sept. 23, 1994, 108 Stat. 2163, which is classified

principally to this subchapter. For complete classification of

this subtitle to the Code, see Short Title note below and Tables.

-MISC2-

SHORT TITLE

Section 1(a) of Pub. L. 103-325 provided that: ''This Act (see

Tables for classification) may be cited as the 'Riegle Community

Development and Regulatory Improvement Act of 1994'.''

Section 101 of title I of Pub. L. 103-325 provided that: ''This

subtitle (subtitle A (Sec. 101-121) of title I of Pub. L. 103-325,

enacting this subchapter and section 1772c-1 of this title,

amending sections 1766 and 1834a of this title, section 5313 of

Title 5, Government Organization and Employees, section 11 of Pub.

L. 95-452 set out in the Appendix to Title 5, section 657 of Title

18, Crimes and Criminal Procedure, and section 9101 of Title 31,

Money and Finance, and enacting provisions set out as a note under

section 11 of Pub. L. 95-452 set out in the Appendix to Title 5)

may be cited as the 'Community Development Banking and Financial

Institutions Act of 1994'.''

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12 USC Sec. 4702 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4702. Definitions

-STATUTE-

For purposes of this subchapter, the following definitions shall

apply:

(1) Administrator

The term ''Administrator'' means the Administrator of the Fund

appointed under section 4703(b) of this title.

(2) Appropriate Federal banking agency

The term ''appropriate Federal banking agency'' has the same

meaning as in section 1813 of this title, and also includes the

National Credit Union Administration Board with respect to

insured credit unions.

(3) Affiliate

The term ''affiliate'' has the same meaning as in section

1841(k) of this title.

(4) Board

The term ''Board'' means the Community Development Advisory

Board established under section 4703(d) of this title.

(5) Community development financial institution

(A) In general

The term ''community development financial institution''

means a person (other than an individual) that -

(i) has a primary mission of promoting community

development;

(ii) serves an investment area or targeted population;

(iii) provides development services in conjunction with

equity investments or loans, directly or through a subsidiary

or affiliate;

(iv) maintains, through representation on its governing

board or otherwise, accountability to residents of its

investment area or targeted population; and

(v) is not an agency or instrumentality of the United

States, or of any State or political subdivision of a State.

(B) Conditions for qualification of holding companies

(i) Consolidated treatment

A depository institution holding company may qualify as a

community development financial institution only if the

holding company and the subsidiaries and affiliates of the

holding company collectively satisfy the requirements of

subparagraph (A).

(ii) Exclusion of subsidiary or affiliate for failure to meet

consolidated treatment rule

No subsidiary or affiliate of a depository institution

holding company may qualify as a community development

financial institution if the holding company and the

subsidiaries and affiliates of the holding company do not

collectively meet the requirements of subparagraph (A).

(C) Conditions for subsidiaries

No subsidiary of an insured depository institution may

qualify as a community development financial institution if the

insured depository institution and its subsidiaries do not

collectively meet the requirements of subparagraph (A).

(6) Community partner

The term ''community partner'' means a person (other than an

individual) that provides loans, equity investments, or

development services, including a depository institution holding

company, an insured depository institution, an insured credit

union, a nonprofit organization, a State or local government

agency, a quasi-governmental entity, and an investment company

authorized to operate pursuant to the Small Business Investment

Act of 1958 (15 U.S.C. 661 et seq.).

(7) Community partnership

The term ''community partnership'' means an agreement between a

community development financial institution and a community

partner to provide development services, loans, or equity

investments, to an investment area or targeted population.

(8) Depository institution holding company

The term ''depository institution holding company'' has the

same meaning as in section 1813 of this title.

(9) Development services

The term ''development services'' means activities that promote

community development and are integral to lending or investment

activities, including -

(A) business planning;

(B) financial and credit counseling; and

(C) marketing and management assistance.

(10) Fund

The term ''Fund'' means the Community Development Financial

Institutions Fund established under section 4703(a) of this

title.

(11) Indian reservation

The term ''Indian reservation'' has the same meaning as in

section 1903(10) of title 25, and shall include land held by

incorporated Native groups, regional corporations, and village

corporations, as defined in or established pursuant to the Alaska

Native Claims Settlement Act (43 U.S.C. 1601 et seq.), public

domain Indian allotments, and former Indian reservations in the

State of Oklahoma.

(12) Indian tribe

The term ''Indian tribe'' means any Indian tribe, band, pueblo,

nation, or other organized group or community, including any

Alaska Native village or regional or village corporation, as

defined in or established pursuant to the Alaska Native Claims

Settlement Act (43 U.S.C. 1601 et seq.), which is recognized as

eligible for the special programs and services provided by the

United States to Indians because of their status as Indians.

(13) Insured community development financial institution

The term ''insured community development financial

institution'' means any community development financial

institution that is an insured depository institution or an

insured credit union.

(14) Insured credit union

The term ''insured credit union'' has the same meaning as in

section 1752(7) of this title.

(15) Insured depository institution

The term ''insured depository institution'' has the same

meaning as in section 1813 of this title.

(16) Investment area

The term ''investment area'' means a geographic area (or areas)

including an Indian reservation that -

(A)(i) meets objective criteria of economic distress

developed by the Fund, which may include the percentage of

low-income families or the extent of poverty, the rate of

unemployment or underemployment, rural population outmigration,

lag in population growth, and extent of blight and

disinvestment; and

(ii) has significant unmet needs for loans or equity

investments; or

(B) encompasses or is located in an empowerment zone or

enterprise community designated under section 1391 of title 26.

(17) Low-income

The term ''low-income'' means having an income, adjusted for

family size, of not more than -

(A) for metropolitan areas, 80 percent of the area median

income; and

(B) for nonmetropolitan areas, the greater of -

(i) 80 percent of the area median income; or

(ii) 80 percent of the statewide nonmetropolitan area

median income.

(18) State

The term ''State'' has the same meaning as in section 1813 of

this title.

(19) Subsidiary

The term ''subsidiary'' has the same meaning as in section 1813

of this title, except that a community development financial

institution that is a corporation shall not be considered to be a

subsidiary of any insured depository institution or depository

institution holding company that controls less than 25 percent of

any class of the voting shares of such corporation, and does not

otherwise control in any manner the election of a majority of the

directors of the corporation.

(20) Targeted population

The term ''targeted population'' means individuals, or an

identifiable group of individuals, including an Indian tribe, who

-

(A) are low-income persons; or

(B) otherwise lack adequate access to loans or equity

investments.

(21) Training program

The term ''training program'' means the training program

operated by the Fund under section 4708 of this title.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 103, Sept. 23, 1994, 108 Stat.

2163.)

-REFTEXT-

REFERENCES IN TEXT

The Small Business Investment Act of 1958, referred to in par.

(6), is Pub. L. 85-699, Aug. 21, 1958, 72 Stat. 689, as amended,

which is classified principally to chapter 14B (Sec. 661 et seq.)

of Title 15, Commerce and Trade. For complete classification of

this Act to the Code, see Short Title note set out under section

661 of Title 15 and Tables.

The Alaska Native Claims Settlement Act, referred to in pars.

(11) and (12), is Pub. L. 92-203, Dec. 18, 1971, 85 Stat. 688, as

amended, which is classified generally to chapter 33 (Sec. 1601 et

seq.) of Title 43, Public Lands. For complete classification of

this Act to the Code, see Short Title note set out under section

1601 of Title 43 and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1715z-2, 1715z-14, 1757a,

1759, 1834a of this title; title 15 section 6901; title 26 section

45D.

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12 USC Sec. 4703 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4703. Establishment of national Fund for community development

banking

-STATUTE-

(a) Establishment

(1) In general

There is established a corporation to be known as the Community

Development Financial Institutions Fund that shall have the

duties and responsibilities specified by this subchapter and

subchapter II of this chapter. The Fund shall have succession

until dissolved. The offices of the Fund shall be in Washington,

D.C. The Fund shall not be affiliated with or be within any other

agency or department of the Federal Government.

(2) Wholly owned Government corporation

The Fund shall be a wholly owned Government corporation in the

executive branch and shall be treated in all respects as an

agency of the United States, except as otherwise provided in this

subchapter.

(b) Management of Fund

(1) Appointment of Administrator

The management of the Fund shall be vested in an Administrator,

who shall be appointed by the President, by and with the advice

and consent of the Senate. The Administrator shall not engage in

any other business or employment during service as the

Administrator.

(2) Chief financial officer

The Administrator shall appoint a chief financial officer, who

shall have the authority and functions of an agency Chief

Financial Officer under section 902 of title 31. In the event of

a vacancy in the position of the Administrator or during the

absence or disability of the Administrator, the chief financial

officer shall perform the duties of the position of

Administrator.

(3) Other officers and employees

The Administrator may appoint such other officers and employees

of the Fund as the Administrator determines to be necessary or

appropriate.

(4) Expedited hiring

During the 2-year period beginning on September 23, 1994, the

Administrator may -

(A) appoint and terminate the individuals referred to in

paragraphs (2) and (3) without regard to the civil service laws

and regulations; and

(B) fix the compensation of the individuals referred to in

paragraph (3) without regard to the provisions of chapter 51

and subchapter III of chapter 53 of title 5 relating to

classification of positions and General Schedule pay rates,

except that the rate of pay for such individuals may not exceed

the rate payable for level V of the Executive Schedule under

section 5316 of such title.

(c) General powers

In carrying out the functions of the Fund, the Administrator -

(1) shall have all necessary and proper authority to carry out

this subchapter and subchapter II of this chapter;

(2) shall have the power to adopt, alter, and use a corporate

seal for the Fund, which shall be judicially noticed;

(3) may adopt, amend, and repeal bylaws, rules, and regulations

governing the manner in which business of the Fund may be

conducted and such rules and regulations as may be necessary or

appropriate to implement this subchapter and subchapter II of

this chapter;

(4) may enter into, perform, and enforce such agreements,

contracts, and transactions as may be deemed necessary or

appropriate to the conduct of activities authorized under this

subchapter and subchapter II of this chapter;

(5) may determine the character of and necessity for

expenditures of the Fund and the manner in which they shall be

incurred, allowed, and paid;

(6) may utilize or employ the services of personnel of any

agency or instrumentality of the United States with the consent

of the agency or instrumentality concerned on a reimbursable or

nonreimbursable basis; and

(7) may execute all instruments necessary or appropriate in the

exercise of any of the functions of the Fund under this

subchapter and subchapter II of this chapter and may delegate to

the officers of the Fund such of the powers and responsibilities

of the Administrator as the Administrator deems necessary or

appropriate for the administration of the Fund.

(d) Advisory Board

(1) Establishment

There is established an advisory board to the Fund to be known

as the Community Development Advisory Board, which shall be

operated in accordance with the provisions of the Federal

Advisory Committee Act, except that section 14 of that Act does

not apply to the Board.

(2) Membership

The Board shall consist of 15 members, including -

(A) the Secretary of Agriculture or his or her designee;

(B) the Secretary of Commerce or his or her designee;

(C) the Secretary of Housing and Urban Development or his or

her designee;

(D) the Secretary of the Interior or his or her designee;

(E) the Secretary of the Treasury or his or her designee;

(F) the Administrator of the Small Business Administration or

his or her designee; and

(G) 9 private citizens, appointed by the President, who shall

be selected, to the maximum extent practicable, to provide for

national geographic representation and racial, ethnic, and

gender diversity, including -

(i) 2 individuals who are officers of existing community

development financial institutions;

(ii) 2 individuals who are officers of insured depository

institutions;

(iii) 2 individuals who are officers of national consumer

or public interest organizations;

(iv) 2 individuals who have expertise in community

development; and

(v) 1 individual who has personal experience and

specialized expertise in the unique lending and community

development issues confronted by Indian tribes on Indian

reservations.

(3) Chairperson

The members of the Board specified in paragraph (2)(G) shall

select, by majority vote, a chairperson of the Board, who shall

serve for a term of 2 years.

(4) Board function

It shall be the function of the Board to advise the

Administrator on the policies of the Fund regarding activities

under this subchapter. The Board shall not advise the

Administrator on the granting or denial of any particular

application.

(5) Terms of private members

(A) In general

Each member of the Board appointed under paragraph (2)(G)

shall serve for a term of 4 years.

(B) Vacancies

Any member appointed to fill a vacancy occurring prior to the

expiration of the term for which the previous member was

appointed shall be appointed for the remainder of such term.

Members may continue to serve following the expiration of their

terms until a successor is appointed.

(6) Meetings

The Board shall meet at least annually and at such other times

as requested by the Administrator or the chairperson. A majority

of the members of the Board shall constitute a quorum.

(7) Reimbursement for expenses

The members of the Board may receive reimbursement for travel,

per diem, and other necessary expenses incurred in the

performance of their duties, in accordance with the Federal

Advisory Committee Act.

(8) Costs and expenses

The Fund shall provide to the Board all necessary staff and

facilities.

(e) Omitted

(f) Government Corporation Control Act exemption

Section 9107(b) of title 31, shall not apply to deposits of the

Fund made pursuant to section 4707 of this title.

(g) Limitation of Fund and Federal liability

The liability of the Fund and the United States Government

arising out of any investment in a community development financial

institution in accordance with this subchapter shall be limited to

the amount of the investment. The Fund shall be exempt from any

assessments and other liabilities that may be imposed on

controlling or principal shareholders by any Federal law or the law

of any State, Territory, or the District of Columbia. Nothing in

this subsection shall affect the application of any Federal tax

law.

(h) Prohibition on issuance of securities

The Fund may not issue stock, bonds, debentures, notes, or other

securities.

(i) Omitted

(j) Assisted institutions not United States instrumentalities

A community development financial institution or other

organization that receives assistance pursuant to this subchapter

shall not be deemed to be an agency, department, or instrumentality

of the United States.

(k) Transition period

(1) In general

During the transition period, the Secretary of the Treasury may

-

(A) assist in the establishment of the administrative

functions of the Fund listed in paragraph (2); and

(B) hire not more than 6 individuals to serve as employees of

the Fund during the transition period.

(2) Continued service

Individuals hired in accordance with paragraph (1)(B) may

continue to serve as employees of the Fund after the transition

period.

(3) Administrative functions

The administrative functions referred to in paragraph (1)(A)

shall be limited to -

(A) establishing accounting, information, and recordkeeping

systems for the Fund; and

(B) procuring office space, equipment, and supplies.

(4) Expedited hiring

During the transition period, the Secretary of the Treasury may

-

(A) appoint and terminate the individuals referred to in

paragraph (1)(B) without regard to the civil service laws and

regulations; and

(B) fix the compensation of the individuals referred to in

paragraph (1)(B) without regard to the provisions of chapter 51

and subchapter III of chapter 53 of title 5 relating to

classification of positions and General Schedule pay rates,

except that the rate of pay for such individuals may not exceed

the rate payable for level V of the Executive Schedule under

section 5316 of such title.

(5) Certain employees

During the transition period, employees of the Department of

the Treasury may only comprise less than one-half of the total

number of individuals hired in accordance with paragraph (1)(B).

(6) Transition expenses

Amounts previously appropriated to the Department of the

Treasury may be used to pay obligations and expenses of the Fund

incurred under this section, and such amounts may be reimbursed

by the Fund to the Department of the Treasury from amounts

appropriated to the Fund for fiscal year 1995.

(7) ''Transition period'' defined

For purposes of this subsection, the term ''transition period''

means the period beginning on September 23, 1994, and ending on

the date on which the Administrator is appointed.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 104, Sept. 23, 1994, 108 Stat.

2166.)

-REFTEXT-

REFERENCES IN TEXT

The civil service laws, referred to in subsecs. (b)(4)(A) and

(k)(4)(A), are set forth in Title 5, Government Organization and

Employees. See, particularly, section 3301 et seq. of Title 5.

The Federal Advisory Committee Act, referred to in subsec.

(d)(1), (7), is Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, as

amended, which is set out in the Appendix to Title 5.

Federal tax law, referred to in subsec. (g), is classified

generally to Title 26, Internal Revenue Code.

-COD-

CODIFICATION

Section is comprised of section 104 of Pub. L. 103-325. Subsecs.

(e) and (i) of section 104 of Pub. L. 103-325 amended section 9101

of Title 31, Money and Finance, and section 5313 of Title 5,

Government Organization and Employees, respectively.

-MISC3-

ADMINISTRATION OF FUND BY SECRETARY OF THE TREASURY

Pub. L. 104-134, title I, Sec. 101(e) (title III), Apr. 26, 1996,

110 Stat. 1321-257, 1321-294; renumbered title I, Pub. L. 104-140,

Sec. 1(a), May 2, 1996, 110 Stat. 1327, provided in part: ''That

notwithstanding any other provision of law, for purposes of

administering the Community Development Financial Institutions

Fund, the Secretary of the Treasury shall have all powers and

rights of the Administrator of the CDBFI Act (12 U.S.C. 4701 et

seq.) and the Fund shall be within the Department of the

Treasury.''

Similar provisions were contained in the following prior

appropriations act:

Pub. L. 104-19, title I, July 27, 1995, 109 Stat. 237.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4702, 4713, 4742 of this

title.

-CITE-

12 USC Sec. 4704 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4704. Applications for assistance

-STATUTE-

(a) Form and procedures

An application for assistance under this subchapter shall be

submitted in such form and in accordance with such procedures as

the Fund shall establish.

(b) Minimum requirements

Except as provided in sections 4705 and 4712 of this title, the

Fund shall require an application -

(1) to establish that the applicant is, or will be, a community

development financial institution;

(2) to include a comprehensive strategic plan for the

organization that contains -

(A) a business plan of not less than 5 years in duration that

demonstrates that the applicant will be properly managed and

will have the capacity to operate as a community development

financial institution that will not be dependent upon

assistance from the Fund for continued viability;

(B) an analysis of the needs of the investment area or

targeted population and a strategy for how the applicant will

attempt to meet those needs;

(C) a plan to coordinate use of assistance from the Fund with

existing Federal, State, local, and tribal government

assistance programs, and private sector financial services;

(D) an explanation of how the proposed activities of the

applicant are consistent with existing economic, community, and

housing development plans adopted by or applicable to an

investment area or targeted population; and

(E) a description of how the applicant will coordinate with

community organizations and financial institutions which will

provide equity investments, loans, secondary markets, or other

services to investment areas or targeted populations;

(3) to include a detailed description of the applicant's plans

and likely sources of funds to match the amount of assistance

requested from the Fund;

(4) in the case of an applicant that has previously received

assistance under this subchapter, to demonstrate that the

applicant -

(A) has substantially met its performance goals and otherwise

carried out its responsibilities under this subchapter and the

assistance agreement; and

(B) will expand its operations into a new investment area or

serve a new targeted population, offer more products or

services, or increase the volume of its business;

(5) in the case of an applicant with a prior history of serving

investment areas or targeted populations, to demonstrate that the

applicant -

(A) has a record of success in serving investment areas or

targeted populations; and

(B) will expand its operations into a new investment area or

to serve a new targeted population, offer more products or

services, or increase the volume of its current business; and

(6) to include such other information as the Fund deems

appropriate.

(c) Preapplication outreach program

The Fund shall provide an outreach program to identify and

provide information to potential applicants and may provide

technical assistance to potential applicants, but shall not assist

in the preparation of any application.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 105, Sept. 23, 1994, 108 Stat.

2170.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1834a, 4705, 4706, 4707,

4712 of this title.

-CITE-

12 USC Sec. 4705 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4705. Community partnerships

-STATUTE-

(a) Application

An application for assistance may be filed jointly by a community

development financial institution and a community partner to carry

out a community partnership.

(b) Application requirements

The Fund shall require a community partnership application -

(1) to meet the minimum requirements established for community

development financial institutions under section 4704(b) of this

title, except that the criteria specified in paragraphs (1) and

(2)(A) of section 4704(b) of this title shall not apply to the

community partner;

(2) to describe how each coapplicant will participate in

carrying out the community partnership and how the partnership

will enhance activities serving the investment area or targeted

population; and

(3) to demonstrate that the community partnership activities

are consistent with the strategic plan submitted by the community

development financial institution coapplicant.

(c) Selection criteria

The Fund shall consider a community partnership application based

on -

(1) the community development financial institution coapplicant

-

(A) meeting the minimum selection criteria described in

section 4704 of this title; and

(B) satisfying the selection criteria of section 4706 of this

title;

(2) the extent to which the community partner coapplicant will

participate in carrying out the partnership;

(3) the extent to which the community partnership will enhance

the likelihood of success of the community development financial

institution coapplicant's strategic plan; and

(4) the extent to which service to the investment area or

targeted population will be better performed by a partnership as

opposed to the individual community development financial

institution coapplicant.

(d) Limitation on distribution of assistance

Assistance provided upon approval of an application under this

section shall be distributed only to the community development

financial institution coapplicant, and shall not be used to fund

any activities carried out directly by the community partner or an

affiliate or subsidiary thereof.

(e) Other requirements and limitations

All other requirements and limitations imposed by this subchapter

on a community development financial institution assisted under

this subchapter shall apply (in the manner that the Fund determines

to be appropriate) to assistance provided to carry out community

partnerships. The Fund may establish additional guidelines and

restrictions on the use of Federal funds to carry out community

partnerships.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 106, Sept. 23, 1994, 108 Stat.

2171.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4704 of this title.

-CITE-

12 USC Sec. 4706 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4706. Selection of institutions

-STATUTE-

(a) Selection criteria

Except as provided in section 4712 of this title, the Fund shall,

in its sole discretion, select community development financial

institution applicants meeting the requirements of section 4704 of

this title for assistance based on -

(1) the likelihood of success of the applicant in meeting the

goals of its comprehensive strategic plan;

(2) the experience and background of the management team;

(3) the extent of need for equity investments, loans, and

development services within the investment areas or targeted

populations;

(4) the extent of economic distress within the investment areas

or the extent of need within the targeted populations, as those

factors are measured by objective criteria;

(5) the extent to which the applicant will concentrate its

activities on serving its investment areas or targeted

populations;

(6) the amount of firm commitments to meet or exceed the

matching requirements and the likely success of the plan for

raising the balance of the match;

(7) the extent to which the matching funds are derived from

private sources;

(8) the extent to which the proposed activities will expand

economic opportunities within the investment areas or the

targeted populations;

(9) whether the applicant is, or will become, an insured

community development financial institution;

(10) the extent of support from the investment areas or

targeted populations;

(11) the extent to which the applicant is, or will be,

community-owned or community-governed;

(12) the extent to which the applicant will increase its

resources through coordination with other institutions or

participation in a secondary market;

(13) in the case of an applicant with a prior history of

serving investment areas or targeted populations, the extent of

success in serving them; and

(14) other factors deemed to be appropriate by the Fund.

(b) Geographic diversity

In selecting applicants for assistance, the Fund shall seek to

fund a geographically diverse group of applicants, which shall

include applicants from metropolitan, nonmetropolitan, and rural

areas.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 107, Sept. 23, 1994, 108 Stat.

2172.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4705, 4707, 4712 of this

title.

-CITE-

12 USC Sec. 4707 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4707. Assistance provided by Fund

-STATUTE-

(a) Forms of assistance

(1) In general

The Fund may provide -

(A) financial assistance through equity investments,

deposits, credit union shares, loans, and grants; and

(B) technical assistance -

(i) directly;

(ii) through grants; or

(iii) by contracting with organizations that possess

expertise in community development finance, without regard to

whether the organizations receive or are eligible to receive

assistance under this subchapter.

(2) Equity investments

(A) Limitation on equity investments

The Fund shall not own more than 50 percent of the equity of

a community development financial institution and may not

control the operations of such institution. The Fund may hold

only transferable, nonvoting equity investments in the

institution. Such equity investments may provide for

convertibility to voting stock upon transfer by the Fund.

(B) Fund deemed not to control

Notwithstanding any other provision of law, the Fund shall

not be deemed to control a community development financial

institution by reason of any assistance provided under this

subchapter for the purpose of any other applicable law to the

extent that the Fund complies with subparagraph (A). Nothing in

this subparagraph shall affect the application of any Federal

tax law.

(3) Deposits

Deposits made pursuant to this section in an insured community

development financial institution shall not be subject to any

requirement for collateral or security.

(4) Limitations on obligations

Direct loan obligations may be incurred by the Fund only to the

extent that appropriations of budget authority to cover their

cost, as defined in section 661a(5) of title 2, are made in

advance.

(b) Uses of financial assistance

(1) In general

Financial assistance made available under this subchapter may

be used by assisted community development financial institutions

to serve investment areas or targeted populations by developing

or supporting -

(A) commercial facilities that promote revitalization,

community stability, or job creation or retention;

(B) businesses that -

(i) provide jobs for low-income people or are owned by

low-income people; or

(ii) enhance the availability of products and services to

low-income people;

(C) community facilities;

(D) the provision of basic financial services;

(E) housing that is principally affordable to low-income

people, except that assistance used to facilitate homeownership

shall only be used for services and lending products -

(i) that serve low-income people; and

(ii) that -

(I) are not provided by other lenders in the area; or

(II) complement the services and lending products

provided by other lenders that serve the investment area or

targeted population; and

(F) other businesses and activities deemed appropriate by the

Fund.

(2) Limitations

No assistance made available under this subchapter may be

expended by a community development financial institution (or an

organization receiving assistance under section 4712 of this

title) to pay any person to influence or attempt to influence any

agency, elected official, officer, or employee of a State or

local government in connection with the making, award, extension,

continuation, renewal, amendment, or modification of any State or

local government contract, grant, loan, or cooperative agreement

(as such terms are defined in section 1352 of title 31).

(c) Uses of technical assistance

(1) Types of activities

Technical assistance may be used for activities that enhance

the capacity of a community development financial institution,

such as training of management and other personnel and

development of programs and investment or loan products.

(2) Availability of technical assistance

The Fund may provide technical assistance, regardless of

whether or not the recipient also receives financial assistance

under this section.

(d) Amount of assistance

(1) In general

Except as provided in paragraph (2), the Fund may provide not

more than $5,000,000 of assistance, in the aggregate, during any

3-year period to any 1 community development financial

institution and its subsidiaries and affiliates.

(2) Exception

The Fund may provide not more than $3,750,000 of assistance in

addition to the amount specified in paragraph (1) during the same

3-year period to an existing community development financial

institution that proposes to establish a subsidiary or affiliate

for the purpose of serving an investment area or targeted

population outside of any State and outside of any metropolitan

area presently served by the institution, if -

(A) the subsidiary or affiliate -

(i) would be a community development financial institution;

and

(ii) independently -

(I) meets the selection criteria described in section

4704 of this title; and

(II) satisfies the selection criteria of section 4706 of

this title; and

(B) no other application for assistance to serve the

investment area or targeted population has been submitted to

the Administrator within a reasonable period of time preceding

the date of receipt of the application at issue.

(3) Timing of assistance

Assistance may be provided as described in paragraphs (1) and

(2) in a lump sum or over a period of time, as determined by the

Fund.

(e) Matching requirements

(1) In general

Assistance other than technical assistance shall be matched

with funds from sources other than the Federal Government on the

basis of not less than one dollar for each dollar provided by the

Fund. Such matching funds shall be at least comparable in form

and value to assistance provided by the Fund. The Fund shall

provide no assistance (other than technical assistance) until a

community development financial institution has secured firm

commitments for the matching funds required.

(2) Exception

In the case of an applicant with severe constraints on

available sources of matching funds, the Fund may permit an

applicant to comply with the matching requirements of paragraph

(1) by -

(A) reducing such matching requirement by 50 percent; or

(B) permitting an applicant to provide matching funds in a

form to be determined at the discretion of the Fund, if such

applicant -

(i) has total assets of less than $100,000;

(ii) serves nonmetropolitan or rural areas; and

(iii) is not requesting more than $25,000 in assistance.

(3) Limitation

Not more than 25 percent of the total funds disbursed in any

fiscal year by the Fund may be matched as authorized under

paragraph (2).

(4) Construction of ''Federal Government funds''

For purposes of this subsection, notwithstanding section

105(a)(9) of the Housing and Community Development Act of 1974

(42 U.S.C. 5305(a)(9)), funds provided pursuant to such Act shall

be considered to be Federal Government funds.

(f) Terms and conditions

(1) Soundness of unregulated institutions

The Fund shall -

(A) ensure, to the maximum extent practicable, that each

community development financial institution (other than an

insured community development financial institution or

depository institution holding company) assisted under this

subchapter is financially and managerially sound and maintains

appropriate internal controls;

(B) require such institution to submit, not less than once

during each 18-month period, a statement of financial condition

audited by an independent certified public accountant as part

of the report required by section 4714(e)(1) of this title; and

(C) require that all assistance granted under this section is

used by the community development financial institution or

community development partnership in a manner consistent with

the purposes of this subchapter.

(2) Assistance agreement

(A) In general

Before providing any assistance under this subchapter, the

Fund and each community development financial institution to be

assisted shall enter into an agreement that requires the

institution to comply with performance goals and abide by other

terms and conditions pertinent to assistance received under

this subchapter.

(B) Performance goals

Performance goals shall be negotiated between the Fund and

each community development financial institution receiving

assistance based upon the strategic plan submitted pursuant to

section 4704(b)(2) of this title. Such goals may be modified

with the consent of the parties, or as provided in subparagraph

(C). Performance goals for insured community development

financial institutions shall be determined in consultation with

the appropriate Federal banking agency.

(C) Sanctions

The agreement shall provide that, in the event of fraud,

mismanagement, noncompliance with this subchapter, or

noncompliance with the terms of the agreement, the Fund, in its

discretion, may -

(i) require changes to the performance goals imposed

pursuant to subparagraph (B);

(ii) require changes to the strategic plan submitted

pursuant to section 4704(b)(2) of this title;

(iii) revoke approval of the application;

(iv) reduce or terminate assistance;

(v) require repayment of assistance;

(vi) bar an applicant from reapplying for assistance from

the Fund; and

(vii) take such other actions as the Fund deems

appropriate.

(D) Consultation with tribal governments

In reviewing the performance of any assisted community

development financial institution, the investment area of which

includes an Indian reservation, or the targeted population of

which includes an Indian tribe, the Fund shall consult with,

and seek input from, any appropriate tribal government.

(g) Authority to sell equity investments and loans

The Fund may, at any time, sell its equity investments and loans,

but the Fund shall retain the power to enforce limitations on

assistance entered into in accordance with the requirements of this

subchapter until the performance goals related to the investment or

loan have been met.

(h) No authority to limit supervision and regulation

Nothing in this subchapter shall affect any authority of the

appropriate Federal banking agency to supervise and regulate any

institution or company.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 108, Sept. 23, 1994, 108 Stat.

2172.)

-REFTEXT-

REFERENCES IN TEXT

Federal tax law, referred to in subsec. (a)(2)(B), is classified

generally to Title 26, Internal Revenue Code.

The Housing and Community Development Act of 1974, referred to in

subsec. (e)(4), is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633, as

amended. For complete classification of this Act to the Code, see

Short Title note set out under section 5301 of Title 42, The Public

Health and Welfare, and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1834a, 4703, 4711, 4715,

4718 of this title.

-CITE-

12 USC Sec. 4708 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4708. Training

-STATUTE-

(a) In general

The Fund may operate a training program to increase the capacity

and expertise of community development financial institutions and

other members of the financial services industry to undertake

community development finance activities.

(b) Program activities

The training program shall provide educational programs to assist

community development financial institutions and other members of

the financial services industry in developing lending and

investment products, underwriting and servicing loans, managing

equity investments, and providing development services targeted to

areas of economic distress, low-income persons, and persons who

lack adequate access to loans and equity investments.

(c) Participation

The training program shall be made available to community

development financial institutions and other members of the

financial services industry that serve or seek to serve areas of

economic distress, low-income persons, and persons who lack

adequate access to loans and equity investments.

(d) Contracting

The Fund may offer the training program described in this section

directly or through a contract with other organizations. The Fund

may contract to provide the training program through organizations

that possess special expertise in community development, without

regard to whether the organizations receive or are eligible to

receive assistance under this subchapter.

(e) Coordination

The Fund shall coordinate with other appropriate Federal

departments or agencies that operate similar training programs in

order to prevent duplicative efforts.

(f) Regulatory fee for providing training services

(1) General rule

The Fund may, at the discretion of the Administrator and in

accordance with this subsection, assess and collect regulatory

fees solely to cover the costs of the Fund in providing training

services under a training program operated in accordance with

this section.

(2) Persons subject to fee

Fees may be assessed under paragraph (1) only on persons who

participate in the training program.

(3) Limitation on manner of collection

Fees may be assessed and collected under this subsection only

in such manner as may reasonably be expected to result in the

collection of an aggregate amount of fees during any fiscal year

which does not exceed the aggregate costs of the Fund for such

year in providing training services under a training program

operated in accordance with this section (FOOTNOTE 1)

(FOOTNOTE 1) So in original. Probably should be followed by a

period.

(4) Limitation on amount of fee

The amount of any fee assessed under this subsection on any

person may not exceed the amount which is reasonably based on the

proportion of the training services provided under a training

program operated in accordance with this section which relate to

such person.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 109, Sept. 23, 1994, 108 Stat.

2176.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4702, 4711, 4718 of this

title.

-CITE-

12 USC Sec. 4709 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4709. Encouragement of private entities

-STATUTE-

The Fund may facilitate the organization of corporations in which

the Federal Government has no ownership interest. The purpose of

any such entity shall be to assist community development financial

institutions in a manner that is complementary to the activities of

the Fund under this subchapter. Any such entity shall be managed

exclusively by persons not employed by the Federal Government or

any agency or instrumentality thereof, or by any State or local

government or any agency or instrumentality thereof.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 110, Sept. 23, 1994, 108 Stat.

2177.)

-CITE-

12 USC Sec. 4710 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4710. Collection and compilation of information

-STATUTE-

The Fund shall -

(1) collect and compile information pertinent to community

development financial institutions that will assist in creating,

developing, expanding, and preserving such institutions; and

(2) make such information available to promote the purposes of

this subchapter.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 111, Sept. 23, 1994, 108 Stat.

2177.)

-CITE-

12 USC Sec. 4711 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4711. Investment of receipts and proceeds

-STATUTE-

(a) Establishment of account

Any dividends on equity investments and proceeds from the

disposition of investments, deposits, or credit union shares that

are received by the Fund as a result of assistance provided

pursuant to section 4707 or 4712 of this title, and any fees

received pursuant to section 4708(f) of this title shall be

deposited and accredited to an account of the Fund in the United

States Treasury (hereafter in this section referred to as ''the

account'') established to carry out the purpose of this subchapter.

(b) Investments

Upon request of the Administrator, the Secretary of the Treasury

shall invest amounts deposited in the account in public debt

securities with maturities suitable to the needs of the Fund, as

determined by the Administrator, and bearing interest at rates

determined by the Secretary of the Treasury, comparable to current

market yields on outstanding marketable obligations of the United

States of similar maturities.

(c) Availability

Amounts deposited into the account and interest earned on such

amounts pursuant to this section shall be available to the Fund

until expended.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 112, Sept. 23, 1994, 108 Stat.

2177.)

-CITE-

12 USC Sec. 4712 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4712. Capitalization assistance to enhance liquidity

-STATUTE-

(a) Assistance

(1) In general

The Fund may provide assistance for the purpose of providing

capital to organizations to purchase loans or otherwise enhance

the liquidity of community development financial institutions, if

-

(A) the primary purpose of such organizations is to promote

community development; and

(B) any assistance received is matched with funds -

(i) from sources other than the Federal Government;

(ii) on the basis of not less than one dollar for each

dollar provided by the Fund; and

(iii) that are comparable in form and value to the

assistance provided by the Fund.

(2) Limitation on other assistance

An organization that receives assistance under this section may

not receive other financial or technical assistance under this

subchapter.

(3) Construction of Federal Government funds

For purposes of this subsection, notwithstanding section

105(a)(9) of the Housing and Community Development Act of 1974

(42 U.S.C. 5305(a)(9)), funds provided pursuant to such Act shall

be considered to be Federal Government funds.

(b) Selection

The selection of organizations to receive assistance under this

section shall be at the discretion of the Fund and in accordance

with criteria established by the Fund. In establishing such

criteria, the Fund shall take into account the criteria contained

in sections 4704(b) and 4706 of this title, as appropriate.

(c) Amount of assistance

The Fund may provide a total of not more than $5,000,000 of

assistance to an organization or its subsidiaries or affiliates

under this section during any 3-year period. Assistance may be

provided in a lump sum or over a period of time, as determined by

the Fund.

(d) Audit and report requirements

Organizations that receive assistance from the Fund in accordance

with this section shall -

(1) submit to the Fund, not less than once in every 18-month

period, financial statements audited by an independent certified

public accountant, as part of the report required by paragraph

(2);

(2) submit an annual report on its activities; and

(3) keep such records as may be necessary to disclose the

manner in which any assistance under this section is used.

(e) Limitations on liability

(1) Liability of Fund

The liability of the Fund and the United States Government

arising out of the provision of assistance to any organization in

accordance with this section shall be limited to the amount of

such assistance. The Fund shall be exempt from any assessments

and any other liabilities that may be imposed on controlling or

principal shareholders by any Federal law or the law of any

State, or territory. Nothing in this paragraph shall affect the

application of Federal tax law.

(2) Liability of Government

This section does not oblige the Federal Government, either

directly or indirectly, to provide any funds to any organization

assisted pursuant to this section, or to honor, reimburse, or

otherwise guarantee any obligation or liability of such an

organization. This section shall not be construed to imply that

any such organization or any obligations or securities of any

such organization are backed by the full faith and credit of the

United States.

(f) Use of proceeds

Any proceeds from the sale of loans by an organization assisted

under this section shall be used by the seller for community

development purposes.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 113, Sept. 23, 1994, 108 Stat.

2178.)

-REFTEXT-

REFERENCES IN TEXT

The Housing and Community Development Act of 1974, referred to in

subsec. (a)(3), is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633, as

amended. For complete classification of this Act to the Code, see

Short Title note set out under section 5301 of Title 42, The Public

Health and Welfare, and Tables.

Federal tax law, referred to in subsec. (e)(1), is classified

generally to Title 26, Internal Revenue Code.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4704, 4706, 4707, 4711,

4718 of this title.

-CITE-

12 USC Sec. 4713 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4713. Incentives for depository institution participation

-STATUTE-

(a) Function of Administrator

(1) In general

Of any funds appropriated pursuant to the authorization in

section 4718(a) of this title, the funds made available for use

in carrying out this section in accordance with section

4718(a)(4) of this title shall be administered by the

Administrator of the Fund, in consultation with -

(A) the Federal banking agencies (as defined in section 3 of

the Federal Deposit Insurance Act (12 U.S.C. 1813)) and the

National Credit Union Administration;

(B) the individuals named pursuant to clauses (ii) and (iv)

of section 4703(d)(2)(G) of this title; and

(C) any other representatives of insured depository

institutions or other persons as the Administrator may

determine to be appropriate.

(2) Applicability of Bank Enterprise Act of 1991

Subject to subsection (b) of this section and the consultation

requirement of paragraph (1) -

(A) section 233 of the Bank Enterprise Act of 1991 (12 U.S.C.

1834a) shall be applicable to the Administrator, for purposes

of this section, in the same manner and to the same extent that

such section is applicable to the Community Enterprise

Assessment Credit Board;

(B) the Administrator shall, for purposes of carrying out

this section and section 233 of the Bank Enterprise Act of 1991

(12 U.S.C. 1834a) -

(i) have all powers and rights of the Community Enterprise

Assessment Credit Board under section 233 of the Bank

Enterprise Act of 1991 to administer and enforce any

provision of such section 233 which is applicable to the

Administrator under this section; and

(ii) shall be subject to the same duties and restrictions

imposed on the Community Enterprise Assessment Credit Board;

and

(C) the Administrator shall -

(i) have all powers and rights of an appropriate Federal

banking agency under section 233(b)(2) of the Bank Enterprise

Act of 1991 (12 U.S.C. 1834a(b)(2)) to approve or disapprove

the designation of qualified distressed communities for

purposes of this section and provide information and

assistance with respect to any such designation; and

(ii) shall be subject to the same duties imposed on the

appropriate Federal banking agencies under such section

233(b)(2).

(3) Awards

The Administrator shall determine the amount of assessment

credits, and shall make awards of those credits.

(4) Regulations and guidelines

The Administrator may prescribe such regulations and issue such

guidelines as the Administrator determines to be appropriate to

carry out this section.

(5) Exceptions to applicability

Notwithstanding paragraphs (1) through (4) of this subsection,

subsections (a)(1) and (e)(2) of section 233 of the Bank

Enterprise Act of 1991 (12 U.S.C. 1834a(a)(1), (e)(2)), and any

other provision of the Federal Deposit Insurance Act (12 U.S.C.

1811 et seq.) relating to the Bank Enterprise Act of 1991, do not

apply to the Administrator for purposes of this subchapter.

(b) Provisions relating to administration of this section

(1) New lifeline accounts

In applying section 233 of the Bank Enterprise Act of 1991 (12

U.S.C. 1834a) for purposes of this section, the Administrator

shall treat the provision of new lifeline accounts by an insured

depository institution as an activity which is qualified to be

taken into account under section 233(a)(2)(A) of such Act.

(2) Determination of assessment credit

For the purpose of this subchapter, section 233(a)(3) of the

Bank Enterprise Act of 1991 (12 U.S.C. 1834a(a)(3)) shall be

applied by substituting the following text:

''(3) Amount of assessment credit

''The amount of an assessment credit which may be awarded to an

insured depository institution to carry out the qualified

activities of the institution or of the subsidiaries of the

institution pursuant to this section for any semiannual period

shall be equal to the sum of -

''(A) with respect to qualifying activities described in

paragraph (2)(A), the amount which is equal to -

''(i) 5 percent of the sum of the amounts determined under

such subparagraph, in the case of an institution which is not

a community development financial institution; or

''(ii) 15 percent of the sum of the amounts determined

under such subparagraph, in the case of an institution which

is a community development financial institution; and

''(B) with respect to qualifying activities described in

paragraph (2)(C), 15 percent of the amounts determined under

such subparagraph.''

(3) Adjustment of percentage

Section 233(a)(5) of the Bank Enterprise Act of 1991 (12 U.S.C.

1834a(a)(5)) shall be applied for purposes of this section by -

(A) substituting ''institutions which are community

development financial institutions'' for ''institutions which

meet the community development organization requirements under

section 234 (12 U.S.C. 1834b)''; and

(B) substituting ''institutions which are not community

development financial institutions'' for ''institutions which

do not meet such requirements''.

(4) Designation of QDC

Section 233(b)(2) of the Bank Enterprise Act of 1991 (12 U.S.C.

1834a(b)(2)) shall be applied for purposes of this section

without regard to subparagraph (A)(ii) of such section 233(b)(2).

(5) Operation on annual basis

The Administrator may, in the Administrator's discretion, apply

section 233 of the Bank Enterprise Act of 1991 for purposes of

this section by providing community enterprise assessment credits

with respect to annual periods rather than semiannual periods.

(6) Outreach

The Administrator shall ensure that information about the Bank

Enterprise Act of 1991 under this section is widely disseminated

to all interested parties.

(7) Qualified activities

For the purpose of this subchapter, section 233(a)(2)(A) of the

Bank Enterprise Act of 1991 shall be applied by inserting ''of

the increase'' after ''the amount''.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 114, Sept. 23, 1994, 108 Stat.

2179.)

-REFTEXT-

REFERENCES IN TEXT

The Bank Enterprise Act of 1991, referred to in subsecs. (a)(2),

(5) and (b)(6), is subtitle C (Sec. 231-234) of title II of Pub. L.

102-242, Dec. 19, 1991, 105 Stat. 2308-2315, which enacted sections

1834 to 1834b of this title, amended section 1817 of this title,

and enacted provisions set out as a note under section 1811 of this

title. For complete classification of this Act to the Code, see

Short Title of 1991 Amendment note set out under section 1811 of

this title and Tables.

The Federal Deposit Insurance Act, referred to in subsec. (a)(5),

is act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as amended,

which is classified generally to chapter 16 (Sec. 1811 et seq.) of

this title. For complete classification of this Act to the Code,

see Short Title note set out under section 1811 of this title and

Tables.

-COD-

CODIFICATION

Section is comprised of section 114 of Pub. L. 103-325. Subsec.

(c) of section 114 of Pub. L. 103-325 amended section 1834a of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4718 of this title.

-CITE-

12 USC Sec. 4714 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4714. Recordkeeping

-STATUTE-

(a) In general

A community development financial institution receiving

assistance from the Fund shall keep such records, for such periods

as may be prescribed by the Fund and necessary to disclose the

manner in which any assistance under this subchapter is used and to

demonstrate compliance with the requirements of this subchapter.

(b) User profile information

The Fund shall require each community development financial

institution or other organization receiving assistance from the

Fund to compile such data, as is determined to be appropriate by

the Fund, on the gender, race, ethnicity, national origin, or other

pertinent information concerning individuals that utilize the

services of the assisted institution to ensure that targeted

populations and low-income residents of investment areas are

adequately served.

(c) Access to records

The Fund shall have access on demand, for the purpose of

determining compliance with this subchapter, to any records of a

community development financial institution or other organization

that receives assistance from the Fund.

(d) Review

Not less than annually, the Fund shall review the progress of

each assisted community development financial institution in

carrying out its strategic plan, meeting its performance goals, and

satisfying the terms and conditions of its assistance agreement.

(e) Reporting

(1) Annual reports

The Fund shall require each community development financial

institution receiving assistance under this subchapter to submit

an annual report to the Fund on its activities, its financial

condition, and its success in meeting performance goals, in

satisfying the terms and conditions of its assistance agreement,

and in complying with other requirements of this subchapter, in

such form and manner as the Fund shall specify.

(2) Availability of reports

The Fund, after deleting or redacting any material as

appropriate to protect privacy or proprietary interests, shall

make such reports submitted under paragraph (1) available for

public inspection.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 115, Sept. 23, 1994, 108 Stat.

2184.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4707 of this title; title

15 section 6908.

-CITE-

12 USC Sec. 4715 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4715. Special provisions with respect to institutions that are

supervised by Federal banking agencies

-STATUTE-

(a) Consultation with appropriate agencies

The Fund shall consult with and consider the views of the

appropriate Federal banking agency prior to providing assistance

under this subchapter to -

(1) an insured community development financial institution;

(2) any community development financial institution that is

examined by or subject to the reporting requirements of an

appropriate Federal banking agency; or

(3) any community development financial institution that has as

its community partner an institution that is examined by or

subject to the reporting requirements of an appropriate Federal

banking agency.

(b) Requests for information, reports, or records

(1) In general

Except as provided in paragraph (4), notwithstanding any other

provisions of this subchapter, prior to directly requesting

information from or imposing reporting or recordkeeping

requirements on an insured community development financial

institution or other institution that is examined by or subject

to the reporting requirements of an appropriate Federal banking

agency, the Fund shall consult with the appropriate Federal

banking agency to determine if the information requested is

available from or may be obtained by such agency in the form,

format, or detail required by the Fund.

(2) Timing of response from appropriate Federal banking agency

If the information, reports, or records requested by the Fund

pursuant to paragraph (1) are not provided by the appropriate

Federal banking agency in less than 15 calendar days after the

date on which the material is requested, the Fund may request the

information from or impose the recordkeeping or reporting

requirements directly on such institutions with notice to the

appropriate Federal banking agency.

(3) Elimination of duplicative information and reporting

requirements

The Fund shall use any information provided the appropriate

Federal banking agency under this section to the extent

practicable to eliminate duplicative requests for information and

reports from, and recordkeeping by an insured community

development financial institution or other institution that is

examined by or subject to the reporting requirements of an

appropriate Federal banking agency.

(4) Exception

Notwithstanding paragraphs (1) and (2), the Fund may require an

insured community development financial institution or other

institution that is examined by or subject to the reporting

requirements of an appropriate Federal banking agency to provide

information with respect to the institution's implementation of

its strategic plan or compliance with the terms of its assistance

agreement under this subchapter, after providing notice to the

appropriate Federal banking agency.

(c) Exclusion for examination reports

Nothing in this section shall be construed to permit the Fund to

require an insured community development financial institution or

other institution that is examined by or subject to the reporting

requirements of an appropriate Federal banking agency, to obtain,

maintain, or furnish an examination report of any appropriate

Federal banking agency or records contained in or related to such a

report.

(d) Sharing of information

The Fund and the appropriate Federal banking agency shall

promptly notify each other of material concerns about an insured

community development financial institution or other institution

that is examined by or subject to the reporting requirements of an

appropriate Federal banking agency, and share appropriate

information relating to such concerns.

(e) Disclosure prohibited

Neither the Fund nor the appropriate Federal banking agency shall

disclose confidential information obtained pursuant to this section

from any party without the written consent of that party.

(f) Privilege maintained

The Fund, the appropriate Federal banking agency, and any other

party providing information under this section shall not be deemed

to have waived any privilege applicable to any information or data,

or any portion thereof, by providing such information or data to

the other party or by permitting such data or information, or any

copies or portions thereof, to be used by the other party.

(g) Exceptions

Nothing in this section shall authorize the Fund or the

appropriate Federal banking agency to withhold information from the

Congress or prevent it from complying with a request for

information from a Federal department or agency in compliance with

applicable law.

(h) Sanctions

(1) Notification

The Fund shall notify the appropriate Federal banking agency

before imposing any sanction pursuant to the authority in section

4707(f)(2)(C) of this title on an insured community development

financial institution or other institution that is examined by or

subject to the reporting requirements of that agency.

(2) Exceptions

The Fund shall not impose a sanction referred to in paragraph

(1) if the appropriate Federal banking agency, in writing, not

later than 30 calendar days after receiving notice from the Fund

-

(A) objects to the proposed sanction;

(B) determines that the sanction would -

(i) have a material adverse effect on the safety and

soundness of the institution; or

(ii) impede or interfere with an enforcement action against

that institution by that agency;

(C) proposes a comparable alternative action; and

(D) specifically explains -

(i) the basis for the determination under subparagraph (B)

and, if appropriate, provides documentation to support the

determination; and

(ii) how the alternative action suggested pursuant to

subparagraph (C) would be as effective as the sanction

proposed by the Fund in securing compliance with this

subchapter and deterring future noncompliance.

(i) Safety and soundness considerations

The Fund and each appropriate Federal banking agency shall

cooperate and respond to requests from each other and from other

appropriate Federal banking agencies in a manner that ensures the

safety and soundness of the insured community development financial

institution or other institution that is examined by or subject to

the reporting requirements of an appropriate Federal banking

agency.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 116, Sept. 23, 1994, 108 Stat.

2185.)

-CITE-

12 USC Sec. 4716 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4716. Studies and reports; examination and audit

-STATUTE-

(a) Annual report by Fund

The Fund shall conduct an annual evaluation of the activities

carried out by the Fund and the community development financial

institutions and other organizations assisted pursuant to this

subchapter, and shall submit a report of its findings to the

President and the Congress not later than 120 days after the end of

each fiscal year of the Fund. The report shall include financial

statements audited in accordance with subsection (f) of this

section.

(b) Optional studies

The Fund may conduct such studies as the Fund determines

necessary to further the purpose of this subchapter and to

facilitate investment in distressed communities. The findings of

any studies conducted pursuant to this subsection shall be included

in the report required by subsection (a) of this section.

(c) Native American lending study

(1) In general

The Fund shall conduct a study on lending and investment

practices on Indian reservations and other land held in trust by

the United States. Such study shall -

(A) identify barriers to private financing on such lands; and

(B) identify the impact of such barriers on access to capital

and credit for Native American populations.

(2) Report

Not later than 12 months after the date on which the

Administrator is appointed, the Fund shall submit a report to the

President and the Congress that -

(A) contains the findings of the study conducted under

paragraph (1);

(B) recommends any necessary statutory and regulatory changes

to existing Federal programs; and

(C) makes policy recommendations for community development

financial institutions, insured depository institutions,

secondary market institutions, and other private sector capital

institutions to better serve such populations.

(d) Investment, governance, and role of Fund

Thirty months after the appointment and qualification of the

Administrator, the Comptroller General of the United States shall

submit to the President and the Congress a study evaluating the

structure, governance, and performance of the Fund.

(e) Consultation

In the conduct of the studies required under this section, the

Fund shall consult, as appropriate, with the Comptroller of the

Currency, the Federal Deposit Insurance Corporation, the Board of

Governors of the Federal Reserve System, the Federal Housing

Finance Board, the Farm Credit Administration, the Director of the

Office of Thrift Supervision, the National Credit Union

Administration Board, Indian tribal governments, community

reinvestment organizations, civil rights organizations, consumer

organizations, financial organizations, and such representatives of

agencies or other persons, at the discretion of the Fund.

(f) Examination and audit

The financial statements of the Fund shall be audited in

accordance with section 9105 of title 31, except that audits

required by section 9105(a) of such title shall be performed

annually.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 117, Sept. 23, 1994, 108 Stat.

2187.)

-CITE-

12 USC Sec. 4717 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4717. Enforcement

-STATUTE-

(a) Regulations

(1) In general

Not later than 180 days after the appointment and qualification

of the Administrator, the Fund shall promulgate such regulations

as may be necessary to carry out this subchapter.

(2) Regulations required

The regulations promulgated under paragraph (1) shall include

regulations applicable to community development financial

institutions that are not insured depository institutions to -

(A) prevent conflicts of interest on the part of directors,

officers, and employees of community development financial

institutions as the Fund determines to be appropriate; and

(B) establish such standards with respect to loans by a

community development financial institution to any director,

officer, or employee of such institution as the Fund determines

to be appropriate, including loan amount limitations.

(b) Administrative enforcement

The provisions of this subchapter, and regulations prescribed and

agreements entered into under this subchapter, shall be enforced

under section 8 of the Federal Deposit Insurance Act (12 U.S.C.

1818) by the appropriate Federal banking agency, in the case of an

insured community development financial institution. A violation

of this subchapter, or any regulation prescribed under or any

agreement entered into under this subchapter, shall be treated as a

violation of the Federal Deposit Insurance Act (12 U.S.C. 1811 et

seq.).

-SOURCE-

(Pub. L. 103-325, title I, Sec. 119, Sept. 23, 1994, 108 Stat.

2188.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Deposit Insurance Act, referred to in subsec. (b), is

act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as amended,

which is classified generally to chapter 16 (Sec. 1811 et seq.) of

this title. For complete classification of this Act to the Code,

see Short Title note set out under section 1811 of this title and

Tables.

-COD-

CODIFICATION

Section is comprised of section 119 of Pub. L. 103-325. Subsec.

(c) of section 119 of Pub. L. 103-325 amended section 657 of Title

18, Crimes and Criminal Procedure.

-CITE-

12 USC Sec. 4718 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL

INSTITUTIONS

-HEAD-

Sec. 4718. Authorization of appropriations

-STATUTE-

(a) Fund authorization

(1) In general

To carry out this subchapter, there are authorized to be

appropriated to the Fund, to remain available until expended -

(A) $60,000,000 for fiscal year 1995;

(B) $104,000,000 for fiscal year 1996;

(C) $107,000,000 for fiscal year 1997; and

(D) $111,000,000 for fiscal year 1998;

or such greater sums as may be necessary to carry out this

subchapter.

(2) Administrative expenses

(A) In general

Of amounts authorized to be appropriated to the Fund pursuant

to this section, not more than $5,550,000 may be used by the

Fund in each fiscal year to pay the administrative costs and

expenses of the Fund. Costs associated with the training

program established under section 4708 of this title and the

technical assistance program established under section 4707 of

this title shall not be considered to be administrative

expenses for purposes of this paragraph.

(B) Calculations

The amounts referred to in paragraphs (3) and (4) shall be

calculated after subtracting the amount referred to in

subparagraph (A) of this paragraph from the total amount

appropriated to the Fund in accordance with paragraph (1) in

any fiscal year.

(3) Capitalization assistance

Not more than 5 percent of the amounts authorized to be

appropriated under paragraph (1) may be used as provided in

section 4712 of this title.

(4) Availability for funding section 4713 of this title

33 1/3 percent of the amounts appropriated to the Fund for any

fiscal year pursuant to the authorization in paragraph (1) shall

be available for use in carrying out section 4713 of this title.

(5) Support of community development financial institutions

The Administrator shall allocate funds authorized under this

section, to the maximum extent practicable, for the support of

community development financial institutions.

(b) Community Development Credit Union Revolving Loan Fund

There are authorized to be appropriated for the purposes of the

Community Development Credit Union Revolving Loan Fund -

(1) $4,000,000 for fiscal year 1995;

(2) $2,000,000 for fiscal year 1996;

(3) $2,000,000 for fiscal year 1997; and

(4) $2,000,000 for fiscal year 1998.

(c) Budgetary treatment

Amounts authorized to be appropriated under this section shall be

subject to discretionary spending caps, as provided in section 665

(FOOTNOTE 1) of title 2, and therefore shall reduce by an equal

amount funds made available for other discretionary spending

programs.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Pub. L. 103-325, title I, Sec. 121, Sept. 23, 1994, 108 Stat.

2189.)

-REFTEXT-

REFERENCES IN TEXT

Section 665 of title 2, referred to in subsec. (c), was repealed

by Pub. L. 105-33, title X, Sec. 10118(a), Aug. 5, 1997, 111 Stat.

695.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4713 of this title.

-CITE-

12 USC SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

.

-HEAD-

SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 4703 of this title.

-CITE-

12 USC Sec. 4741 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-

Sec. 4741. Findings and purposes

-STATUTE-

(a) Findings

The Congress finds that -

(1) small business concerns are a vital part of the economy,

accounting for the majority of new jobs, new products, and new

services created in the United States;

(2) adequate access to debt capital is a critical component for

small business development, productivity, expansion, and success

in the United States;

(3) commercial banks are the most important suppliers of debt

capital to small business concerns in the United States;

(4) commercial banks and other depository institutions have

various incentives to minimize their risk in financing small

business concerns;

(5) as a result of such incentives, many small business

concerns with economically sound financing needs are unable to

obtain access to needed debt capital;

(6) the small business capital access programs implemented by

certain States are a flexible and efficient tool to assist

financial institutions in providing access to needed debt capital

for many small business concerns in a manner consistent with

safety and soundness regulations;

(7) a small business capital access program would complement

other programs which assist small business concerns in obtaining

access to capital; and

(8) Federal policy can stimulate and accelerate efforts by

States to implement small business capital access programs by

providing an incentive to States, while leaving the

administration of such programs to each participating State.

(b) Purposes

By encouraging States to implement administratively efficient

capital access programs that encourage commercial banks and other

depository institutions to provide access to debt capital for a

broad portfolio of small business concerns, and thereby promote a

more efficient and effective debt market, the purposes of this

subchapter are -

(1) to promote economic opportunity and growth;

(2) to create jobs;

(3) to promote economic efficiency;

(4) to enhance productivity; and

(5) to spur innovation.

-SOURCE-

(Pub. L. 103-325, title II, Sec. 251, Sept. 23, 1994, 108 Stat.

2203.)

-MISC1-

EFFECTIVE DATE

Section 261 of title II of Pub. L. 103-325 provided that: ''This

subtitle (subtitle B (Sec. 251-261) of title II of Pub. L. 103-325,

enacting this subchapter) shall become effective on January 6,

1996.''

-CITE-

12 USC Sec. 4742 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-

Sec. 4742. Definitions

-STATUTE-

For purposes of this subchapter -

(1) the term ''Fund'' means the Community Development Financial

Institutions Fund established under section 4703 of this title;

(2) the term ''appropriate Federal banking agency'' -

(A) has the same meaning as in section 1813 of this title;

and

(B) includes the National Credit Union Administration Board

in the case of any credit union the deposits of which are

insured in accordance with the Federal Credit Union Act (12

U.S.C. 1751 et seq.);

(3) the term ''early loan'' means a loan enrolled at a time

when the aggregate covered amount of loans previously enrolled

under the Program by a particular participating financial

institution is less than $5,000,000;

(4) the term ''enrolled loan'' means a loan made by a

participating financial institution that is enrolled by a

participating State in accordance with this subchapter;

(5) the term ''financial institution'' means any federally

chartered or State-chartered commercial bank, savings

association, savings bank, or credit union;

(6) the term ''participating financial institution'' means any

financial institution that has entered into a participation

agreement with a participating State in accordance with section

4744 of this title;

(7) the term ''participating State'' means any State that has

been approved for participation in the Program in accordance with

section 4743 of this title;

(8) the term ''passive real estate ownership'' means ownership

of real estate for the purpose of deriving income from

speculation, trade, or rental, except that such term shall not

include -

(A) the ownership of that portion of real estate being used

or intended to be used for the operation of the business of the

owner of the real estate (other than the business of passive

ownership of real estate); or

(B) the ownership of real estate for the purpose of

construction or renovation, until the completion of the

construction or renovation phase;

(9) the term ''Program'' means the Small Business Capital

Enhancement Program established under this subchapter;

(10) the term ''reserve fund'' means a fund, established by a

participating State, earmarked for a particular participating

financial institution, for the purposes of -

(A) depositing all required premium charges paid by the

participating financial institution and by each borrower

receiving a loan under the Program from a participating

financial institution;

(B) depositing contributions made by the participating State;

and

(C) covering losses on enrolled loans by disbursing

accumulated funds; and

(11) the term ''State'' means -

(A) a State of the United States;

(B) the District of Columbia;

(C) any political subdivision of a State of the United

States, which subdivision has a population in excess of the

population of the least populated State of the United States;

and

(D) any other political subdivision of a State of the United

States that the Fund determines has the capacity to participate

in the program. (FOOTNOTE 1)

(FOOTNOTE 1) So in original. Probably should be capitalized.

-SOURCE-

(Pub. L. 103-325, title II, Sec. 252, Sept. 23, 1994, 108 Stat.

2204.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Credit Union Act, referred to in par. (2)(B), is act

June 26, 1934, ch. 750, 48 Stat. 1216, as amended, which is

classified generally to chapter 14 (Sec. 1751 et seq.) of this

title. For complete classification of this Act to the Code, see

section 1751 of this title and Tables.

-CITE-

12 USC Sec. 4743 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-

Sec. 4743. Approving States for participation

-STATUTE-

(a) Application

Any State may apply to the Fund for approval to be a

participating State under the Program and to be eligible for

reimbursement by the Fund pursuant to section 4747 of this title.

(b) Approval criteria

The Fund shall approve a State to be a participating State, if -

(1) a specific department or agency of the State has been

designated to implement the Program;

(2) all legal actions necessary to enable such designated

department or agency to implement the Program have been

accomplished;

(3) funds in the amount of at least $1 for every 2 people

residing in the State (as of the last decennial census for which

data have been released) are available and have been legally

committed to contributions by the State to reserve funds, with

such funds being available without time limit and without

requiring additional legal action, except that such requirements

shall not be construed to limit the authority of the State to

take action at a later time that results in the termination of

its obligation to enroll loans and make contributions to reserve

funds;

(4) the State has prescribed a form of participation agreement

to be entered into between it and each participating financial

institution that is consistent with the requirements and purposes

of this subchapter; and

(5) the State and the Fund have executed a reimbursement

agreement that conforms to the requirements of this subchapter.

(c) Existing State programs

(1) In general

A State that is not a participating State, but that has its own

capital access program providing portfolio insurance for business

loans (based on a separate loss reserve fund for each financial

institution), may apply at any time to the Fund to be approved to

be a participating State. The Fund shall approve such State to be

a participating State, and to be eligible for reimbursements by

the Fund pursuant to section 4747 of this title, if the State -

(A) satisfies the requirements of subsections (a) and (b) of

this section; and

(B) certifies that each affected financial institution has

satisfied the requirements of section 4744 of this title.

(2) Applicable terms of participation

(A) Status of institutions

If a State is approved for participation under paragraph (1),

each financial institution with a participation agreement in

effect with the participating State shall immediately be

considered a participating financial institution.

Reimbursements may be made under section 4747 (FOOTNOTE 1) of

this title in connection with all contributions made to the

reserve fund by the State in connection with lending that

occurs on or after the date on which the Fund approves the

State for participation.

(FOOTNOTE 1) See References in Text note below.

(B) Effective date of participation

If an amended participation agreement that conforms with

section 4745 of this title is required in order to secure

participation approval by the Fund, contributions subject to

reimbursement under section 4747 of this title shall include

only those contributions made to a reserve fund with respect to

loans enrolled on or after the date that an amended

participation agreement between the participating State and the

participating financial institution becomes effective.

(C) Use of accumulated reserve funds

A State that is approved for participation in accordance with

this subsection may continue to implement the program (FOOTNOTE

2) utilizing the reserve funds accumulated under the State

program.

(FOOTNOTE 2) So in original. Probably should be capitalized.

(d) Prior appropriations requirement

The Fund shall not approve a State for participation in the

Program until at least $50,000,000 has been appropriated to the

Fund (subject to an appropriations Act), without fiscal year

limitation, for the purpose of making reimbursements pursuant to

section 4747 of this title and otherwise carrying out this

subchapter.

(e) Amendments to agreements

If a State that has been approved to be a participating State

wishes to amend its form of participation agreement and continue to

be a participating State, such State shall submit such amendment

for review by the Fund in accordance with subsection (b)(4) of this

section. Any such amendment shall become effective only after it

has been approved by the Fund.

-SOURCE-

(Pub. L. 103-325, title II, Sec. 253, Sept. 23, 1994, 108 Stat.

2205.)

-REFTEXT-

REFERENCES IN TEXT

Section 4747 of this title, referred to in subsec. (c)(2)(A), was

in the original ''section 237'' and was translated as reading

''section 257'' meaning section 257 of Pub. L. 103-325, to reflect

the probable intent of Congress. Pub. L. 103-325 does not contain a

section 237.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4742, 4746, 4748 of this

title.

-CITE-

12 USC Sec. 4744 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-

Sec. 4744. Participation agreements

-STATUTE-

(a) In general

A participating State may enter into a participation agreement

with any financial institution determined by the participating

State, after consultation with the appropriate Federal banking

agency, to have sufficient commercial lending experience and

financial and managerial capacity to participate in the Program.

The determination by the State shall not be reviewable by the Fund.

(b) Participating financial institutions

Upon entering into the participation agreement with the

participating State, the financial institution shall become a

participating financial institution eligible to enroll loans under

the Program.

-SOURCE-

(Pub. L. 103-325, title II, Sec. 254, Sept. 23, 1994, 108 Stat.

2207.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4742, 4743 of this title.

-CITE-

12 USC Sec. 4745 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-

Sec. 4745. Terms of participation agreements

-STATUTE-

(a) In general

The participation agreement to be entered into by a participating

State and a participating financial institution shall include all

provisions required by this section, and shall not include any

provisions inconsistent with the provisions of this section.

(b) Establishment of separate reserve funds

A separate reserve fund shall be established by the participating

State for each participating financial institution. All funds

credited to a reserve fund shall be the exclusive property of the

participating State. Each reserve fund shall be an administrative

account for the purposes of -

(1) receiving all required premium charges to be paid by the

borrower and participating financial institution and

contributions by the participating State; and

(2) disbursing funds, either to cover losses sustained by the

participating financial institution in connection with loans made

under the Program, or as contemplated by subsections (d) and (r)

of this section.

(c) Investment authority

Subject to applicable State law, the participating State may

invest, or cause to be invested, funds held in a reserve fund by

establishing a deposit account at the participating financial

institution in the name of the participating State. In the event

that funds in the reserve fund are not deposited in such an

account, such funds shall be invested in a form that the

participating State determines is safe and liquid.

(d) Earned income and interest

Interest or income earned on the funds credited to a reserve fund

shall be deemed to be part of the reserve fund, except that a

participating State may, as further specified in the participation

agreement, provide authority for the participating State to

withdraw some or all of such interest or income earned.

(e) Loan terms and conditions

(1) In general

A loan to be filed for enrollment under the Program may be made

with such interest rate, fees, and other terms and conditions as

agreed upon by the participating financial institution and the

borrower, consistent with applicable law.

(2) Lines of credit

If a loan to be filed for enrollment is in the form of a line

of credit, the amount of the loan shall be considered to be the

maximum amount that can be drawn by the borrower against the line

of credit.

(f) Enrollment process

(1) Filing

(A) In general

A participating financial institution shall file each loan

made under the Program for enrollment by completing and

submitting to the participating State a form prescribed by the

participating State.

(B) Form

The form referred to in subparagraph (A) shall include a

representation by the participating financial institution that

it has complied with the participation agreement in enrolling

the loan with the State.

(C) Premium charges

Accompanying the completed form shall be the nonrefundable

premium charges paid by the borrower and the participating

financial institution, or evidence that such premium charges

have been deposited into the deposit account containing the

reserve fund, if applicable.

(D) Submission

The participation agreement shall require that the items

required by this subsection shall be submitted to the

participating State by the participating financial institutions

not later than 10 calendar days after a loan is made.

(2) Enrollment by State

Upon receipt by the participating State of the filing submitted

in accordance with paragraph (1), the participating State shall

promptly enroll the loan and make a matching contribution to the

reserve fund in accordance with subsection (j) of this section,

unless the information submitted indicates that the participating

financial institution has not complied with the participation

agreement in enrolling the loan.

(g) Coverage amount

In filing a loan for enrollment under the Program, the

participating financial institution may specify an amount to be

covered under the Program that is less than the full amount of the

loan.

(h) Premium charges

(1) Minimum and maximum amounts

The premium charges payable to the reserve fund by the borrower

and the participating financial institution shall be prescribed

by the participating financial institution, within minimum and

maximum limits set forth in the participation agreement. The

participation agreement shall establish minimum and maximum

limits whereby the sum of the premium charges paid in connection

with a loan by the borrower and the participating financial

institution is not less than 3 percent nor more than 7 percent of

the amount of the loan covered under the Program.

(2) Allocation of premium charges

The participation agreement shall specify terms for allocating

premium charges between the borrower and the participating

financial institution. However, if the participating financial

institution is required to pay any of the premium charges, the

participation agreement shall authorize the participating

financial institution to recover from the borrower the cost of

the payment of the participating financial institution, in any

manner on which the participating financial institution and the

borrower agree.

(i) Restrictions

(1) Actions prohibited

Except as provided in subsection (h) of this section and

paragraph (2) of this subsection, the participating State may not

-

(A) impose any restrictions or requirements, relating to the

interest rate, fees, collateral, or other business terms and

conditions of the loan; or

(B) condition enrollment of a loan in the Program on the

review by the State of the risk or creditworthiness of a loan.

(2) Effect on other law

Nothing in this subchapter shall affect the applicability of

any other law to the conduct by a participating financial

institution of its business.

(j) State contributions

In enrolling a loan under the Program, the participating State

shall contribute to the reserve fund an amount, as provided for in

the participation agreement, which shall not be less than the sum

of the amount of premium charges paid by the borrower and the

participating financial institution.

(k) Submission of claims

(1) Filing

If a participating financial institution charges off all or

part of an enrolled loan, such participating financial

institution may file a claim for reimbursement with the

participating State by submitting a form that -

(A) includes the representation by the participating

financial institution that it is filing the claim in accordance

with the terms of the applicable participation agreement; and

(B) contains such other information as may be required by the

participating State.

(2) Timing

Any claim filed under paragraph (1) shall be filed

contemporaneously with the action of the participating financial

institution to charge off all or part of an enrolled loan. The

participating financial institution shall determine when and how

much to charge off on an enrolled loan, in a manner consistent

with its usual method for making such determinations on business

loans that are not enrolled loans under this subchapter.

(l) Elements of claims

A claim filed by a participating financial institution may

include the amount of principal charged off, not to exceed the

covered amount of the loan. Such claim may also include accrued

interest and out-of-pocket expenses, if and to the extent provided

for under the participation agreement.

(m) Payment of claims

(1) In general

Except as provided in subsection (n) of this section and

paragraph (2) of this subsection, upon receipt of a claim filed

in accordance with this section and the participation agreement,

the participating State shall promptly pay to the participating

financial institution, from funds in the reserve fund, the full

amount of the claim as submitted.

(2) Insufficient reserve funds

If there are insufficient funds in the reserve fund to cover

the entire amount of a claim of a participating financial

institution, the participating State shall pay to the

participating financial institution an amount equal to the

current balance in the reserve fund. If the enrolled loan for

which the claim has been filed -

(A) is not an early loan, such payment shall be deemed fully

to satisfy the claim, and the participating financial

institution shall have no other or further right to receive any

amount from the reserve fund with respect to such claim; or

(B) is an early loan, such payment shall not be deemed fully

to satisfy the claim of the participating financial

institution, and at such time as the remaining balance of the

claim does not exceed 75 percent of the balance in the reserve

fund, the participating State shall, upon the request of the

participating financial institution, pay any remaining amount

of the claim.

(n) Denial of claims

A participating State may deny a claim if a representation or

warranty made by the participating financial institution to the

participating State at the time that the loan was filed for

enrollment or at the time that the claim was submitted was known by

the participating financial institution to be false.

(o) Subsequent recovery of claim amount

If, subsequent to payment of a claim by the participating State,

a participating financial institution recovers from a borrower any

amount for which payment of the claim was made, the participating

financial institution shall promptly pay to the participating State

for deposit into the reserve fund the amount recovered, less any

expenses incurred by the institution in collection of such amount.

(p) Participation agreement terms

(1) In general

In connection with the filing of a loan for enrollment in the

Program, the participation agreement -

(A) shall require the participating financial institution to

obtain an assurance from each borrower that -

(i) the proceeds of the loan will be used for a business

purpose;

(ii) the loan will not be used to finance passive real

estate ownership; and

(iii) the borrower is not -

(I) an executive officer, director, or principal

shareholder of the participating financial institution;

(II) a member of the immediate family of an executive

officer, director, or principal shareholder of the

participating financial institution; or

(III) a related interest of any such executive officer,

director, principal shareholder, or member of the immediate

family;

(B) shall require the participating financial institution to

provide assurances to the participating State that the loan has

not been made in order to place under the protection of the

Program prior debt that is not covered under the Program and

that is or was owed by the borrower to the participating

financial institution or to an affiliate of the participating

financial institution;

(C) may provide that if -

(i) a participating financial institution makes a loan to a

borrower that is a refinancing of a loan previously made to

the borrower by the participating financial institution or an

affiliate of the participating financial institution;

(ii) such prior loan was not enrolled in the Program; and

(iii) additional or new financing is extended by the

participating financial institution as part of the

refinancing,

the participating financial institution may file the loan for

enrollment, with the amount to be covered under the Program not

to exceed the amount of any additional or new financing; and

(D) may include additional restrictions on the eligibility of

loans or borrowers that are not inconsistent with the

provisions and purposes of this subchapter.

(2) Definitions

For purposes of this subsection, the terms ''executive

officer'', ''director'', ''principal shareholder'', ''immediate

family'', and ''related interest'' refer to the same relationship

to a participating financial institution as the relationship

described in part 215 of title 12 of the Code of Federal

Regulations, or any successor to such part.

(q) Termination clause

In each participation agreement, the participating State shall

reserve for itself the ability to terminate its obligation to

enroll loans under the Program. Any such termination shall be

prospective only, and shall not apply to amounts of loans enrolled

under the Program prior to such termination.

(r) Allowable withdrawals from fund

The participation agreement may provide that, if, for any

consecutive period of not less than 24 months, the aggregate

outstanding balance of all enrolled loans for a participating

financial institution is continually less than the outstanding

balance in the reserve fund for that participating financial

institution, the participating State, in its discretion, may

withdraw an amount from the reserve fund to bring the balance in

the reserve fund down to the outstanding balance of all such

enrolled loans.

(s) Grandfathered provision

(1) Special treatment of premium charges

Notwithstanding subsection (b) or (d) of this section, the

participation agreement, if explicitly authorized by a statute

enacted by the State before September 23, 1994, may allow a

participating financial institution to treat the premium charges

paid by the participating financial institution and the borrower

into the reserve fund, and interest or income earned on funds in

the reserve fund that are deemed to be attributable to such

premium charges, as assets of the participating financial

institution for accounting purposes, subject to withdrawal by the

participating financial institution only -

(A) for the payment of claims approved by the participating

State in accordance with this section; and

(B) upon the participating financial institution's withdrawal

from authority to make new loans under the Program.

(2) Payment of post-withdrawal claims

After any withdrawal of assets from the reserve fund pursuant

to paragraph (1)(B), any future claims filed by the participating

financial institution on loans remaining in its capital access

program portfolio shall only be paid from funds remaining in the

reserve fund to the extent that, in the aggregate, such claims

exceed the sum of the amount of such withdrawn assets, and

interest on that amount, imputed at the same rate as income would

have accrued had the amount not been withdrawn.

(3) Conditions for terminating special authority

If the Fund determines that the inclusion in a participation

agreement of the provisions authorized by this subsection is

resulting in the enrollment of loans under the Program that are

likely to have been made without assistance provided under this

subchapter, the Fund may notify the participating State that

henceforth, the Fund will only make reimbursements to the State

under section 4747 of this title with respect to a loan if the

participation agreement between the participating State and each

participating financial institution has been amended to conform

with this section, without exercise of the special authority

granted by this subsection.

-SOURCE-

(Pub. L. 103-325, title II, Sec. 255, Sept. 23, 1994, 108 Stat.

2207.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4743, 4748 of this title.

-CITE-

12 USC Sec. 4746 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-

Sec. 4746. Reports

-STATUTE-

(a) Reserve funds report

On or before the last day of each calendar quarter, a

participating State shall submit to the Fund a report of

contributions to reserve funds made by the participating State

during the previous calendar quarter. If the participating State

has made contributions to one or more reserve funds during the

previous quarter, the report shall -

(1) indicate the total amount of such contributions;

(2) indicate the amount of contributions which is subject to

reimbursement, which shall be equal to the total amount of

contributions, unless one of the limitations contained in section

4747 of this title is applicable;

(3) if one of the limitations in section 4747 of this title is

applicable, provide documentation of the applicability of such

limitation for each loan for which the limitation applies; and

(4) include a certification by the participating State that -

(A) the information provided in accordance with paragraphs

(1), (2), and (3) is accurate;

(B) funds in an amount meeting the minimum requirements of

section 4743(b)(3) of this title continue to be available and

legally committed to contributions by the State to reserve

funds, less any amount that has been contributed by the State

to reserve funds subsequent to the State being approved for

participation in the Program;

(C) there has been no unapproved amendment to any

participation agreement or the form of participation

agreements; and

(D) the participating State is otherwise implementing the

Program in accordance with this subchapter and regulations

issued pursuant to section 4749 of this title.

(b) Annual data

Not later than March 31 of each year, each participating State

shall submit to the Fund annual data indicating the number of

borrowers financed under the Program, the total amount of covered

loans, and breakdowns by industry type, loan size, annual sales,

and number of employees of the borrowers financed.

(c) Form

The reports and data filed pursuant to subsections (a) and (b) of

this section shall be in such form as the Fund may require.

-SOURCE-

(Pub. L. 103-325, title II, Sec. 256, Sept. 23, 1994, 108 Stat.

2212.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4747 of this title.

-CITE-

12 USC Sec. 4747 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-

Sec. 4747. Reimbursement by Fund

-STATUTE-

(a) Reimbursements

Not later than 30 calendar days after receiving a report filed in

compliance with section 4746 of this title, the Fund shall

reimburse the participating State in an amount equal to 50 percent

of the amount of contributions by the participating State to the

reserve funds that are subject to reimbursement by the Fund

pursuant to section 4746 of this title and this section. The Fund

shall reimburse participating States, as it receives reports

pursuant to section 4746(a) of this title, until available funds

are expended.

(b) Size of assisted borrower

The Fund shall not provide any reimbursement to a participating

State with respect to an enrolled loan made to a borrower that has

500 or more employees at the time that the loan is enrolled in the

Program.

(c) Three-year maximum

The amount of reimbursement to be provided by the Fund to a

participating State over any 3-year period in connection with loans

made to any single borrower or any group of borrowers among which a

common enterprise exists shall not exceed $75,000. For purposes of

this subsection, ''common enterprise'' shall have the same meaning

as in part 32 of title 12 of the Code of Federal Regulations, or

any successor to that part.

(d) Loans totaling less than $2,000,000

In connection with a loan in which the covered amount of the loan

plus the covered amount of all previous loans enrolled by a

participating financial institution does not exceed $2,000,000, the

amount of reimbursement by the Fund to the participating State

shall not exceed the lesser of -

(1) 75 percent of the sum of the premium charges paid to the

reserve fund by the borrower and the participating financial

institution; or

(2) 5.25 percent of the covered amount of the loan.

(e) Loans totaling more than $2,000,000

In connection with a loan in which the sum of the covered amounts

of all previous loans enrolled by the participating financial

institution in the Program equals or exceeds $2,000,000, the amount

of reimbursement to be provided by the Fund to the participating

State shall not exceed the lesser of -

(1) 50 percent of the sum of the premium charges paid by the

borrower and the participating financial institution; or

(2) 3.5 percent of the covered amount of the loan.

(f) Other amounts

In connection with the enrollment of a loan that will cause the

aggregate covered amount of all enrolled loans to exceed

$2,000,000, the amount of reimbursement by the Fund to the

participating State shall be determined -

(1) by applying subsection (d) of this section to the portion

of the loan, which when added to the aggregate covered amount of

all previously enrolled loans equals $2,000,000; and

(2) by applying subsection (e) of this section to the balance

of the loan.

-SOURCE-

(Pub. L. 103-325, title II, Sec. 257, Sept. 23, 1994, 108 Stat.

2212.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4743, 4745, 4746, 4748 of

this title.

-CITE-

12 USC Sec. 4748 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-

Sec. 4748. Reimbursement to Fund

-STATUTE-

(a) In general

If a participating State withdraws funds from a reserve fund

pursuant to terms of the participation agreement permitted by

subsection (d) or (r) of section 4745 of this title, such

participating State shall, not later than 15 calendar days after

such withdrawal, submit to the Fund an amount computed by

multiplying the amount withdrawn by the appropriate factor, as

determined under subsection (b) of this section.

(b) Factor

The appropriate factor shall be obtained by dividing the total

amount of contributions that have been made by the participating

State to all reserve funds which were subject to reimbursement -

(1) by 2; and

(2) by the total amount of contributions made by the

participating State to all reserve funds, including if

applicable, contributions that have been made by the State prior

to becoming a participating State if the State continued its own

capital access program in accordance with section 4743(b) of this

title.

(c) Use of reimbursements

The Fund may use funds reimbursed pursuant to this section to

make reimbursements under section 4747 of this title.

-SOURCE-

(Pub. L. 103-325, title II, Sec. 258, Sept. 23, 1994, 108 Stat.

2213.)

-CITE-

12 USC Sec. 4749 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-

Sec. 4749. Regulations

-STATUTE-

The Fund shall promulgate appropriate regulations to implement

this subchapter.

-SOURCE-

(Pub. L. 103-325, title II, Sec. 259, Sept. 23, 1994, 108 Stat.

2214.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4746 of this title.

-CITE-

12 USC Sec. 4750 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-

Sec. 4750. Authorization of appropriations

-STATUTE-

(a) Amount

There are authorized to be appropriated to the Fund $50,000,000

to carry out this subchapter.

(b) Budgetary treatment

The amount authorized to be appropriated under subsection (a) of

this section shall be subject to discretionary spending caps, as

provided in section 665 (FOOTNOTE 1) of title 2, and therefore

shall reduce by an equal amount funds made available for other

discretionary spending programs.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Pub. L. 103-325, title II, Sec. 260, Sept. 23, 1994, 108 Stat.

2214.)

-REFTEXT-

REFERENCES IN TEXT

Section 665 of title 2, referred to in subsec. (b), was repealed

by Pub. L. 105-33, title X, Sec. 10118(a), Aug. 5, 1997, 111 Stat.

695.

-CITE-