Legislación
US (United States) Code. Title 12. Chapter 47: Community Development Banking
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12 USC CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING 01/06/03
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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.
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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
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(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.)
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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
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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.
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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-
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| Enviado por: | El remitente no desea revelar su nombre |
| Idioma: | inglés |
| País: | Estados Unidos |
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