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8000 - Miscellaneous Statutes and Regulations


RIEGLE COMMUNITY DEVELOPMENT AND REGULATORY IMPROVEMENT ACT OF 1994

An Act

To reduce administrative requirements for insured depository institutions to the extent consistent with safe and sound banking practices, to facilitate the establishment of community development financial institutions, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a)  SHORT TITLE.--This Act may be cited as the "Riegle Community Development and Regulatory Improvement Act of 1994".

TITLE I—COMMUNITY DEVELOPMENT AND CONSUMER PROTECTION

Subtitle A—Community Development Banking and Financial Institutions Act

SEC. 101. SHORT TITLE.

This subtitle may be cited as the "Community Development Banking and Financial Institutions Act of 1994".

[Codified to 12 U.S.C. 4701 note]

[Source:  Section 101 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2163), effective September 23, 1994]

SEC. 102. FINDINGS AND PURPOSES.

(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 subtitle 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.

[Codified to 12 U.S.C. 4701]

[Source:  Section 102 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2163), effective September 23, 1994]

SEC. 103. DEFINITIONS.

For purposes of this subtitle, the following definitions shall apply:

(1)  ADMINISTRATOR.--The term "Administrator" means the Administrator of the Fund appointed under section 104(b).

(2)  APPROPRIATE FEDERAL BANKING AGENCY.--The term "appropriate Federal banking agency" has the same meaning as in section 3 of the Federal Deposit Insurance Act, 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 2(k) of the Bank Holding Company Act of 1956.

(4)  BOARD.--The term "Board" means the Community Development Advisory Board established under section 104(d).

(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.

(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 3 of the Federal Deposit Insurance Act.

(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 104(a).

(11)  INDIAN RESERVATION.--The term "Indian reservation" has the same meaning as in section 4(10) of the Indian Child Welfare Act of 1978, 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, 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, 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 101(7) of the Federal Credit Union Act.

(15)  INSURED DEPOSITORY INSTITUTION.--The term "insured depository institution" has the same meaning as in section 3 of the Federal Deposit Insurance Act.

(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 the Internal Revenue Code of 1986.

(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 3 of the Federal Deposit Insurance Act.

(19)  SUBSIDIARY.--The term "subsidiary" has the same meaning as in section 3 of the Federal Deposit Insurance Act, except that a community development financial institution that is a corporation shall not be considered to be a subsidiary of any insured depository institution or depository institution holding company that controls less than 25 percent of any class of the voting shares of such corporation, and does not otherwise control in any manner the election of a majority of the directors of the corporation.

(20)  TARGETED POPULATION.--The term "targeted population" means individuals, or an identifiable group of individuals, including an Indian tribe, who--

(A)  are low-income persons; or

(B)  otherwise lack adequate access to loans or equity investments.

(21)  TRAINING PROGRAM.--The term "training program" means the training program operated by the Fund under section 109.

[Codified to 12 U.S.C. 4702]

[Source:  Section 103 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2163), effective September 23, 1994]

SEC. 104. ESTABLISHMENT OF NATIONAL FUND FOR COMMUNITY DEVELOPMENT BANKING.

(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 subtitle and subtitle B of title II. 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 subtitle.

(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. 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, United States Code. 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 the date of enactment of this Act, 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, United States Code, 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 subtitle and subtitle B of title II;

(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 subtitle and subtitle B of title II;

(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 subtitle and subtitle B of title II;

(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 subtitle and subtitle B of title II 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 the 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 subtitle. 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.

(f)  GOVERNMENT CORPORATION CONTROL ACT EXEMPTION.--Section 9107(b) of title 31, United States Code, shall not apply to deposits of the Fund made pursuant to section 108.

(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 subtitle 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.

(j)  ASSISTED INSTITUTIONS NOT UNITED STATES INSTRUMENTALITIES.--A community development financial institution or other organization that receives assistance pursuant to this subtitle 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, United States Code, 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)  DEFINITION.--For purposes of this subsection, the term "transition period" means the period beginning on the date of enactment of this Act and ending on the date on which the Administrator is appointed.

[Codified to 12 U.S.C. 4703]

[Source:  Section 104 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2166), effective September 23, 1994; amended by Section 2(w) of the Act of August 10, 2012 (Pub. L. No. 112--166; 126 Stat. 1289), effective August 10, 2012]

SEC. 105. APPLICATIONS FOR ASSISTANCE.

(a)  FORM AND PROCEDURES.--An application for assistance under this subtitle 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 106 and 113, 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 subtitle, to demonstrate that the applicant--

(A)  has substantially met its performance goals and otherwise carried out its responsibilities under this subtitle 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.

[Codified to 12 U.S.C. 4704]

[Source:  Section 105 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2170), effective September 23, 1994]

SEC. 106. COMMUNITY PARTNERSHIPS.

(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 105(b), except that the criteria specified in paragraphs (1) and (2)(A) of section 105(b) 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 105; and

(B)  satisfying the selection criteria of section 107;

(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 subtitle on a community development financial institution assisted under this subtitle 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.

[Codified to 12 U.S.C. 4705]

[Source:  Section 106 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2171), effective September 23, 1994]

SEC. 107. SELECTION OF INSTITUTIONS.

(a)  SELECTION CRITERIA.--Except as provided in section 113, the Fund shall, in its sole discretion, select community development financial institution applicants meeting the requirements of section 105 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.

[Codified to 12 U.S.C. 4706]


[Source:  Section 107 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2172), effective September 23, 1994]

SEC. 108. ASSISTANCE PROVIDED BY THE FUND.

(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 subtitle.

(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 subtitle 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 502(5) of the Congressional Budget Act of 1974, are made in advance.

(b)  USES OF FINANCIAL ASSISTANCE.--

(1)  IN GENERAL.--Financial assistance made available under this subtitle 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 subtitle may be expended by a community development financial institution (or an organization receiving assistance under section 113) 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, United States Code).

(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 105; and

(II)  satisfies the selection criteria of section 107; 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, 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 subtitle 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 115(e)(1); 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 subtitle.

(2)  ASSISTANCE AGREEMENT.--

(A)  IN GENERAL.--Before providing any assistance under this subtitle, 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 subtitle.

(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 105(b)(2). 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 subtitle, 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 105(b)(2);

(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 subtitle until the performance goals related to the investment or loan have been met.

(h)  NO AUTHORITY TO LIMIT SUPERVISION AND REGULATION.--Nothing in this subtitle shall affect any authority of the appropriate Federal banking agency to supervise and regulate any institution or company.

[Codified to 12 U.S.C. 4707]

[Source:  Section 108 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2172), effective September 23, 1994]

SEC. 109. TRAINING.

(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 subtitle.

(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.

(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.

[Codified to 12 U.S.C. 4708]

[Source:  Section 109 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2167), effective September 23, 1994]

SEC. 110. ENCOURAGEMENT OF PRIVATE ENTITIES.

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 subtitle. 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.

[Codified to 12 U.S.C. 4709]

[Source:  Section 110 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2177), effective September 23, 1994]

SEC. 111. COLLECTION AND COMPILATION OF INFORMATION.

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 subtitle.

[Codified to 12 U.S.C. 4710]


[Source:  Section 111 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2177), effective September 23, 1994]

SEC. 112. INVESTMENT OF RECEIPTS AND PROCEEDS.

(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 108 or 113, and any fees received pursuant to section 109(f) 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 subtitle.

(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.

[Codified to 12 U.S.C. 4711]

[Source:  Section 112 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2177), effective September 23, 1994]

SEC. 113. CAPITALIZATION ASSISTANCE TO ENHANCE LIQUIDITY.

(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 subtitle.

(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, 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 105(b) and 107, 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 any 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.

[Codified to 12 U.S.C. 4712]

[Source:  Section 113 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2178), effective September 23, 1994]

SEC. 114. INCENTIVES FOR DEPOSITORY INSTITUTION PARTICIPATION.

(a)  FUNCTION OF ADMINISTRATOR.--

(1)  IN GENERAL.--Of any funds appropriated pursuant to the authorization in section 121(a), the funds made available for use in carrying out this section in accordance with section 121(a)(4) 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) and the National Credit Union Administration;

(B)  the individuals named pursuant to clauses (ii) and (iv) of section 104(d)(2)(G); 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) and the consultation requirement of paragraph (1)--

(A)  section 233 of the Bank Enterprise Act of 1991 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--

(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 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, and any other provision of the Federal Deposit Insurance Act relating to the Bank Enterprise Act of 1991, do not apply to the Administrator for purposes of this subtitle.

(b)  PROVISIONS RELATING TO ADMINISTRATION OF THIS SECTION.--

(1)  NEW LIFELINE ACCOUNTS.--In applying section 233 of the Bank Enterprise Act of 1991 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.

[Codified to 12 U.S.C. 4713]

[Source:  Section 114 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2179), effective September 23, 1994]

SEC. 114A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR COMMUNITY OR ECONOMIC DEVELOPMENT PURPOSES.

(a)  DEFINITIONS.--In this section, the following definitions shall apply:

(1)  ELIGIBLE COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION.--The term "eligible community development financial institution" means a community development financial institution (as described in section 1805.201 of title 12, Code of Federal Regulations, or any successor thereto) certified by the Secretary that has applied to a qualified issuer for, or been granted by a qualified issuer, a loan under the Program.

(2)  ELIGIBLE COMMUNITY OR ECONOMIC DEVELOPMENT PURPOSE.-- The term "eligible community or economic development purpose"--

(A)  means any purpose described in section 108(b); and

(B)  includes the provision of community or economic development in low-income or underserved rural areas.

(3)  GUARANTEE.--The term "guarantee" means a written agreement between the Secretary and a qualified issuer (or trustee), pursuant to which the Secretary ensures repayment of the verifiable losses of principal, interest, and call premium, if any, on notes or bonds issued by a qualified issuer to finance or refinance loans to eligible community development financial institutions.

(4)  LOAN.--The term "loan" means any credit instrument that is extended under the Program for any eligible community or economic development purpose.

(5)  MASTER SERVICER.--

(A)  IN GENERAL.--The term "master servicer" means any entity approved by the Secretary in accordance with subparagraph (B) to oversee the activities of servicers, as provided in subsection (f)(4).

(B)  APPROVAL CRITERIA FOR MASTER SERVICERS.--The Secretary shall approve or deny any application to become a master servicer under the Program not later than 90 days after the date on which all required information is submitted to the Secretary, based on the capacity and experience of the applicant in--

(i)  loan administration, servicing, and loan monitoring;

(ii)  managing regional or national loan intake, processing, or servicing operational systems and infrastructure;

(iii)  managing regional or national originator communication systems and infrastructure;

(iv)  developing and implementing training and other risk management strategies on a regional or national basis; and

(v)  compliance monitoring, investor relations, and reporting.

(6)  PROGRAM.--The term "Program" means the guarantee Program for bonds and notes issued for eligible community or economic development purposes established under this section.

(7)  PROGRAM ADMINISTRATOR.--The term "Program Administrator" means an entity designated by the issuer to perform administrative duties, as provided in subsection (f)(2).

(8)  QUALIFIED ISSUER.--

(A)  IN GENERAL.--The term "qualified issuer" means a community development financial institution (or any entity designated to issue notes or bonds on behalf of such community development financial institution) that meets the qualification requirements of this paragraph.

(B)  APPROVAL CRITERIA FOR QUALIFIED ISSUERS.--

(i)  IN GENERAL.--The Secretary shall approve a qualified issuer for a guarantee under the Program in accordance with the requirements of this paragraph, and such additional requirements as the Secretary may establish, by regulation.

(ii)  TERMS AND QUALIFICATIONS.--A qualified issuer shall--

(I)  have appropriate expertise, capacity, and experience, or otherwise be qualified to make loans for eligible community or economic development purposes;

(II)  provide to the Secretary--

(aa)  an acceptable statement of the proposed sources and uses of the funds; and

(bb)  a capital distribution plan that meets the requirements of subsection (c)(1); and

(III)  certify to the Secretary that the bonds or notes to be guaranteed are to be used for eligible community or economic development purposes.

(i)  DEPARTMENT OPINION.--Not later than 30 days after the date of a request by a qualified issuer for approval of a guarantee under the Program, the Secretary shall provide an opinion regarding compliance by the issuer with the requirements of the Program under this section.

(ii)  TIMING.--The Secretary shall approve or deny a guarantee under this section after consideration of the opinion provided to the Secretary under clause (i), and in no case later than 90 days after receipt of all required information by the Secretary with respect to a request for such guarantee.

(9)  SECRETARY.--The term "Secretary" means the Secretary of the Treasury.

(10)  SERVICER.--The term "servicer" means an entity designated by the issuer to perform various servicing duties, as provided in subsection (f)(3).

(b)  GUARANTEES AUTHORIZED.--The Secretary shall guarantee payments on bonds or notes issued by any qualified issuer, if the proceeds of the bonds or notes are used in accordance with this section to make loans to eligible community development financial institutions--

(1)  for eligible community or economic development purposes; or

(2)  to refinance loans or notes issued for such purposes.

(c)  GENERAL PROGRAM REQUIREMENTS.--

(1)  IN GENERAL.--A capital distribution plan meets the requirements of this subsection, if not less than 90 percent of the principal amount of guaranteed bonds or notes (other than costs of issuance fees) are used to make loans for any eligible community or economic development purpose, measured annually, beginning at the end of the 1-year period beginning on the issuance date of such guaranteed bonds or notes.

(2)  RELENDING ACCOUNT.--Not more than 10 percent of the principal amount of guaranteed bonds or notes, multiplied by an amount equal to the outstanding principal balance of issued notes or bonds, minus the risk-share pool amount under subsection (d), may be held in a relending account and may be made available for new eligible community or economic development purposes.

(3)  LIMITATIONS ON UNPAID PRINCIPAL BALANCES.--The proceeds of guaranteed bonds or notes under the Program may not be used to pay fees (other than costs of issuance fees), and shall be held in--

(A)  community or economic development loans;

(B)  a relending account, to the extent authorized under paragraph (2); or

(C)  a risk-share pool established under subsection (d).

(4)  REPAYMENT.--If a qualified issuer fails to meet the requirements of paragraph (1) by the end of the 90-day period beginning at the end of the annual measurement period, repayment shall be made on that portion of bonds or notes necessary to bring the bonds or notes that remain outstanding after such repayment into compliance with the 90 percent requirement of paragraph (1).

(5)  PROHIBITED USES.--The Secretary shall, by regulation--

(A)  prohibit, as appropriate, certain uses of amounts from the guarantee of a bond or note under the Program, including the use of such funds for political activities, lobbying, outreach, counseling services, or travel expenses; and

(B)  provide that the guarantee of a bond or note under the Program may not be used for salaries or other administrative costs of--

(i)  the qualified issuer; or

(ii)  any recipient of amounts from the guarantee of a bond or note.

(d)  RISK-SHARE POOL.--Each qualified issuer shall, during the term of a guarantee provided under the Program, establish a risk-share pool, capitalized by contributions from eligible community development financial institution participants an amount equal to 3 percent of the guaranteed amount outstanding on the subject notes and bonds.

(e)  GUARANTEES.--

(1)  IN GENERAL.--A guarantee issued under the Program shall--

(A)  be for the full amount of a bond or note, including the amount of principal, interest, and call premiums;

(B)  be fully assignable and transferable to the capital market, on terms and conditions that are consistent with comparable Government-guaranteed bonds, and satisfactory to the Secretary;

(C)  represent the full faith and credit of the United States; and

(D)  not exceed 30 years.

(2)  LIMITATIONS.--

(A)  ANNUAL NUMBER OF GUARANTEES.--The Secretary shall issue not more than 10 guarantees in any calendar year under the Program.

(B)  GUARANTEE AMOUNTS.--The Secretary may not guarantee any amount under the Program equal to less than $100,000,000, but the total of all such guarantees in any fiscal year may not exceed $1,000,000,000.

(f)  SERVICING OF TRANSACTIONS.--

(1)  IN GENERAL.--To maximize efficiencies and minimize cost and interest rates, loans made under this section may be serviced by qualified Program administrators, bond servicers, and a master servicer.

(2)  DUTIES OF PROGRAM ADMINISTRATOR.--The duties of a Program administrator shall include--

(A)  approving and qualifying eligible community development financial institution applications for participation in the Program;

(B)  compliance monitoring;

(C)  bond packaging in connection with the Program; and

(D)  all other duties and related services that are customarily expected of a Program administrator.

(3)  DUTIES OF SERVICER.--The duties of a servicer shall include--

(A)  billing and collecting loan payments;

(B)  initiating collection activities on past-due loans;

(C)  transferring loan payments to the master servicing accounts;

(D)  loan administration and servicing;

(E)  systematic and timely reporting of loan performance through remittance and servicing reports;

(F)  proper measurement of annual outstanding loan requirements; and

(G)  all other duties and related services that are customarily expected of servicers.

(4)  DUTIES OF MASTER SERVICER.--The duties of a master servicer shall include--

(A)  tracking the movement of funds between the accounts of the master servicer and any other servicer;

(B)  ensuring orderly receipt of the monthly remittance and servicing reports of the servicer;

(C)  monitoring the collection comments and foreclosure actions;

(D)  aggregating the reporting and distribution of funds to trustees and investors;

(E)  removing and replacing a servicer, as necessary;

(F)  loan administration and servicing;

(G)  systematic and timely reporting of loan performance compiled from all bond servicers' reports;

(H)  proper distribution of funds to investors; and

(I)  all other duties and related services that are customarily expected of a master servicer.

(g)  FEES.--

(1)  IN GENERAL.--A qualified issuer that receives a guarantee issued under this section on a bond or note shall pay a fee to the Secretary, in an amount equal to 10 basis points of the amount of the unpaid principal of the bond or note guaranteed.

(2)  PAYMENT.--A qualified issuer shall pay the fee required under this subsection on an annual basis.

(3)  USE OF FEES.--Fees collected by the Secretary under this subsection shall be used to reimburse the Department of the Treasury for any administrative costs incurred by the Department in implementing the Program established under this section.

(h)  AUTHORIZATION OF APPROPRIATIONS.--

(1)  IN GENERAL.--There are authorized to be appropriated to the Secretary, such sums as are necessary to carry out this section.

(2)  USE OF FEES.--To the extent that the amount of funds appropriated for a fiscal year under paragraph (1) are not sufficient to carry out this section, the Secretary may use the fees collected under subsection (g) for the cost of providing guarantees of bonds and notes under this section.

(i)  INVESTMENT IN GUARANTEED BONDS INELIGIBLE FOR COMMUNITY REINVESTMENT ACT PURPOSES.--Notwithstanding any other provision of law, any investment by a financial institution in bonds or notes guaranteed under the Program shall not be taken into account in assessing the record of such institution for purposes of the Community Reinvestment Act of 1977 (12 U.S.C. 2901).

(j)  ADMINISTRATION.--

(1)  REGULATIONS.--Not later than 1 year after the date of enactment of this section, the Secretary shall promulgate regulations to carry out this section.

(2)  IMPLEMENTATION.--Not later than 2 years after the date of enactment of this section, the Secretary shall implement this section.

(k)  TERMINATION.--This section is repealed, and the authority provided under this section shall terminate, on September 30, 2014

[Codified to 12 U.S.C. 4713a]

[Source: Section 4713a added by section 114A of title I of the Act of September 27, 2010 (Pub. L. No. 111--240; 124 Stat. 2515), effective September 27, 2010]

SEC. 115. RECORDKEEPING.

(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 subtitle is used and to demonstrate compliance with the requirements of this subtitle.

(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 subtitle, 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 subtitle 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 subtitle, 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.

[Codified to 12 U.S.C. 4714]

[Source:  Section 115 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2184), effective September 23, 1994]

SEC. 116. SPECIAL PROVISIONS WITH RESPECT TO INSTITUTIONS THAT ARE SUPERVISED BY FEDERAL BANKING AGENCIES.

(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 subtitle 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 subtitle, 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 subtitle, 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 108(f)(2)(C) 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 subtitle 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.

[Codified to 12 U.S.C. 4715]

[Source:  Section 116 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2185), effective September 23, 1994]

SEC. 117. STUDIES AND REPORTS; EXAMINATION AND AUDIT.

(a)  ANNUAL REPORT BY THE 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 subtitle, 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).

(b)  OPTIONAL STUDIES.--The Fund may conduct such studies as the Fund determines necessary to further the purpose of this subtitle 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).

(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 Agency, 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, United States Code, except that audits required by section 9105(a) of such title shall be performed annually.

[Codified to 12 U.S.C. 4716]

[Source:  Section 117 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2187), effective September 23, 1994; section 1216(b) of title II of the Act of July 30, 2008 (Pub. L. No. 110--289; 122 Stat. 2792), effective July 30, 2008]

SEC. 119. ENFORCEMENT.

(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 subtitle.

(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 subtitle, and regulations prescribed and agreements entered into under this subtitle, shall be enforced under section 8 of the Federal Deposit Insurance Act by the appropriate Federal banking agency, in the case of an insured community development financial institution. A violation of this subtitle, or any regulation prescribed under or any agreement entered into under this subtitle, shall be treated as a violation of the Federal Deposit Insurance Act.

[Codified to 12 U.S.C. 4717]

[Source:  Section 119 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2188), effective September 23, 1994]

SEC. 121. AUTHORIZATION OF APPROPRIATIONS.

(a)  FUND AUTHORIZATION.--

(1)  IN GENERAL.--To carry out this subtitle, 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 subtitle.

(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 109 and the technical assistance program established under section 108 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 113.

(4)  AVAILABILITY FOR FUNDING SECTION 114.--331/3 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 114.

(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 601 of the Congressional Budget Act of 1974, and therefore shall reduce by an equal amount funds made available for other discretionary spending programs.

[Codified to 12 U.S.C. 4718]

[Source:  Section 121 of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2189), effective September 23, 1994]

SEC. 122. GRANTS TO ESTABLISH LOAN-LOSS RESERVE FUNDS.

(a)  PURPOSES.--The purposes of this section are--

(1)  to make financial assistance available from the Fund in order to help community development financial institutions defray the costs of operating small dollar loan programs, by providing the amounts necessary for such institutions to establish their own loan loss reserve funds to mitigate some of the losses on such small dollar loan programs; and

(2)  to encourage community development financial institutions to establish and maintain small dollar loan programs that would help give consumers access to mainstream financial institutions and combat high cost small dollar lending.

(b)  GRANTS.--

(1)  LOAN-LOSS RESERVE FUND GRANTS.--The Fund shall make grants to community development financial institutions or to any partnership between such community development financial institutions and any other federally insured depository institution with a primary mission to serve targeted investment areas, as such areas are defined under section 103(16), to enable such institutions or any partnership of such institutions to establish a loan-loss reserve fund in order to defray the costs of a small dollar loan program established or maintained by such institution.

(2)  MATCHING REQUIREMENT.--A community development financial institution or any partnership of institutions established pursuant to paragraph (1) shall provide non-Federal matching funds in an amount equal to 50 percent of the amount of any grant received under this section.

(3)  USE OF FUNDS.--Any grant amounts received by a community development financial institution or any partnership between or among such institutions under paragraph (1)--

(A)  may not be used by such institution to provide direct loans to consumers;

(B)  may be used by such institution to help recapture a portion or all of a defaulted loan made under the small dollar loan program of such institution; and

(C)  may be used to designate and utilize a fiscal agent for services normally provided by such an agent.

(4)  TECHNICAL ASSISTANCE GRANTS.--The Fund shall make technical assistance grants to community development financial institutions or any partnership between or among such institutions to support and maintain a small dollar loan program. Any grant amounts received under this paragraph may be used for technology, staff support, and other costs associated with establishing a small dollar loan program.

(c)  DEFINITIONS.--For purposes of this section--

(1)  the term "consumer reporting agency that compiles and maintains files on consumers on a nationwide basis" has the same meaning given such term in section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)); and

(2)  the term "small dollar loan program" means a loan program wherein a community development financial institution or any partnership between or among such institutions offers loans to consumers that--

(A)  are made in amounts not exceeding $2,500;

(B)  must be repaid in installments;

(C)  have no pre-payment penalty;

(D)  the institution has to report payments regarding the loan to at least 1 of the consumer reporting agencies that compiles and maintains files on consumers on a nationwide basis; and

(E)  meet any other affordability requirements as may be established by the Administrator.

[Codified to 12 U.S.C. 4719]

[Source: Section 122 added by section 1206 of title XII of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2131), effective July 21, 2010]


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