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8000 - Miscellaneous Statutes and Regulations
{{10-31-94 p.8871}}
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
{{10-31-94 p.8872}}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
{{10-31-94 p.8873}}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
{{10-31-94 p.8874}}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, 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, 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;
{{10-31-94 p.8875}}
(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.
* * * * *
{{10-31-94 p.8876}}
(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]
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;
{{10-31-94 p.8877}}
(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;
{{10-31-94 p.8878}}
(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]
{{10-31-94 p.8879}}
[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
{{10-31-94 p.8880}}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--
{{10-31-94 p.8881}}
(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
{{10-31-94 p.8882}}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]
{{10-31-94 p.8883}}
[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);
{{10-31-94 p.8884}}
(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).
{{12-30-94 p.8885}}
(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. 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]
{{12-30-94 p.8886}}
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
{{10-31-08 p.8887}}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
{{10-31-08 p.8888}}
(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.
{{10-31-08 p.8889}}
[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.
{{10-31-08 p.8890}}
(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]
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