-CITE-
    12 USC CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING           01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING

-HEAD-
                CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING            

-MISC1-
        SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                               INSTITUTIONS
    Sec.                                                     
    4701.       Findings and purposes.                                
    4702.       Definitions.                                          
    4703.       Establishment of national Fund for community
                 development banking.                                 
    4704.       Applications for assistance.                          
    4705.       Community partnerships.                               
    4706.       Selection of institutions.                            
    4707.       Assistance provided by Fund.                          
    4708.       Training.                                             
    4709.       Encouragement of private entities.                    
    4710.       Collection and compilation of information.            
    4711.       Investment of receipts and proceeds.                  
    4712.       Capitalization assistance to enhance liquidity.       
    4713.       Incentives for depository institution participation.  
    4714.       Recordkeeping.                                        
    4715.       Special provisions with respect to institutions that
                 are supervised by Federal banking agencies.          
    4716.       Studies and reports; examination and audit.           
    4717.       Enforcement.                                          
    4718.       Authorization of appropriations.                      

            SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT        
    4741.       Findings and purposes.                                
    4742.       Definitions.                                          
    4743.       Approving States for participation.                   
    4744.       Participation agreements.                             
    4745.       Terms of participation agreements.                    
    4746.       Reports.                                              
    4747.       Reimbursement by Fund.                                
    4748.       Reimbursement to Fund.                                
    4749.       Regulations.                                          
    4750.       Authorization of appropriations.                      

-End-

-CITE-
    12 USC SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND
           FINANCIAL INSTITUTIONS                          01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
        SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                               INSTITUTIONS

-End-

-CITE-
    12 USC Sec. 4701                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4701. Findings and purposes

-STATUTE-
    (a) Findings
      The Congress finds that - 
        (1) many of the Nation's urban, rural, and Native American
      communities face critical social and economic problems arising in
      part from the lack of economic growth, people living in poverty,
      and the lack of employment and other opportunities;
        (2) the restoration and maintenance of the economies of these
      communities will require coordinated development strategies,
      intensive supportive services, and increased access to equity
      investments and loans for development activities, including
      investment in businesses, housing, commercial real estate, human
      development, and other activities that promote the long-term
      economic and social viability of the community; and
        (3) community development financial institutions have proven
      their ability to identify and respond to community needs for
      equity investments, loans, and development services.
    (b) Purpose
      The purpose of this subchapter is to create a Community
    Development Financial Institutions Fund to promote economic
    revitalization and community development through investment in and
    assistance to community development financial institutions,
    including enhancing the liquidity of community development
    financial institutions.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 102, Sept. 23, 1994, 108 Stat.
    2163.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This subchapter, referred to in subsec. (b), was in original
    "this subtitle", meaning subtitle A of title I of Pub. L. 103-325,
    Sept. 23, 1994, 108 Stat. 2163, which is classified principally to
    this subchapter. For complete classification of this subtitle to
    the Code, see Short Title note below and Tables.

-MISC1-
                                SHORT TITLE                            
      Section 1(a) of Pub. L. 103-325 provided that: "This Act [see
    Tables for classification] may be cited as the 'Riegle Community
    Development and Regulatory Improvement Act of 1994'."
      Section 101 of title I of Pub. L. 103-325 provided that: "This
    subtitle [subtitle A (Secs. 101-121) of title I of Pub. L. 103-325,
    enacting this subchapter and section 1772c-1 of this title,
    amending sections 1766 and 1834a of this title, section 5313 of
    Title 5, Government Organization and Employees, section 11 of Pub.
    L. 95-452 set out in the Appendix to Title 5, section 657 of Title
    18, Crimes and Criminal Procedure, and section 9101 of Title 31,
    Money and Finance, and enacting provisions set out as a note under
    section 11 of Pub. L. 95-452 set out in the Appendix to Title 5]
    may be cited as the 'Community Development Banking and Financial
    Institutions Act of 1994'."

-End-

-CITE-
    12 USC Sec. 4702                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4702. Definitions

-STATUTE-
      For purposes of this subchapter, the following definitions shall
    apply:
      (1) Administrator
        The term "Administrator" means the Administrator of the Fund
      appointed under section 4703(b) of this title.
      (2) Appropriate Federal banking agency
        The term "appropriate Federal banking agency" has the same
      meaning as in section 1813 of this title, and also includes the
      National Credit Union Administration Board with respect to
      insured credit unions.
      (3) Affiliate
        The term "affiliate" has the same meaning as in section 1841(k)
      of this title.
      (4) Board
        The term "Board" means the Community Development Advisory Board
      established under section 4703(d) of this title.
      (5) Community development financial institution
        (A) In general
          The term "community development financial institution" means
        a person (other than an individual) that - 
            (i) has a primary mission of promoting community
          development;
            (ii) serves an investment area or targeted population;
            (iii) provides development services in conjunction with
          equity investments or loans, directly or through a subsidiary
          or affiliate;
            (iv) maintains, through representation on its governing
          board or otherwise, accountability to residents of its
          investment area or targeted population; and
            (v) is not an agency or instrumentality of the United
          States, or of any State or political subdivision of a State.
        (B) Conditions for qualification of holding companies
          (i) Consolidated treatment
            A depository institution holding company may qualify as a
          community development financial institution only if the
          holding company and the subsidiaries and affiliates of the
          holding company collectively satisfy the requirements of
          subparagraph (A).
          (ii) Exclusion of subsidiary or affiliate for failure to meet
            consolidated treatment rule
            No subsidiary or affiliate of a depository institution
          holding company may qualify as a community development
          financial institution if the holding company and the
          subsidiaries and affiliates of the holding company do not
          collectively meet the requirements of subparagraph (A).
        (C) Conditions for subsidiaries
          No subsidiary of an insured depository institution may
        qualify as a community development financial institution if the
        insured depository institution and its subsidiaries do not
        collectively meet the requirements of subparagraph (A).
      (6) Community partner
        The term "community partner" means a person (other than an
      individual) that provides loans, equity investments, or
      development services, including a depository institution holding
      company, an insured depository institution, an insured credit
      union, a nonprofit organization, a State or local government
      agency, a quasi-governmental entity, and an investment company
      authorized to operate pursuant to the Small Business Investment
      Act of 1958 [15 U.S.C. 661 et seq.].
      (7) Community partnership
        The term "community partnership" means an agreement between a
      community development financial institution and a community
      partner to provide development services, loans, or equity
      investments, to an investment area or targeted population.
      (8) Depository institution holding company
        The term "depository institution holding company" has the same
      meaning as in section 1813 of this title.
      (9) Development services
        The term "development services" means activities that promote
      community development and are integral to lending or investment
      activities, including - 
          (A) business planning;
          (B) financial and credit counseling; and
          (C) marketing and management assistance.
      (10) Fund
        The term "Fund" means the Community Development Financial
      Institutions Fund established under section 4703(a) of this
      title.
      (11) Indian reservation
        The term "Indian reservation" has the same meaning as in
      section 1903(10) of title 25, and shall include land held by
      incorporated Native groups, regional corporations, and village
      corporations, as defined in or established pursuant to the Alaska
      Native Claims Settlement Act [43 U.S.C. 1601 et seq.], public
      domain Indian allotments, and former Indian reservations in the
      State of Oklahoma.
      (12) Indian tribe
        The term "Indian tribe" means any Indian tribe, band, pueblo,
      nation, or other organized group or community, including any
      Alaska Native village or regional or village corporation, as
      defined in or established pursuant to the Alaska Native Claims
      Settlement Act [43 U.S.C. 1601 et seq.], which is recognized as
      eligible for the special programs and services provided by the
      United States to Indians because of their status as Indians.
      (13) Insured community development financial institution
        The term "insured community development financial institution"
      means any community development financial institution that is an
      insured depository institution or an insured credit union.
      (14) Insured credit union
        The term "insured credit union" has the same meaning as in
      section 1752(7) of this title.
      (15) Insured depository institution
        The term "insured depository institution" has the same meaning
      as in section 1813 of this title.
      (16) Investment area
        The term "investment area" means a geographic area (or areas)
      including an Indian reservation that - 
          (A)(i) meets objective criteria of economic distress
        developed by the Fund, which may include the percentage of low-
        income families or the extent of poverty, the rate of
        unemployment or underemployment, rural population outmigration,
        lag in population growth, and extent of blight and
        disinvestment; and
          (ii) has significant unmet needs for loans or equity
        investments; or
          (B) encompasses or is located in an empowerment zone or
        enterprise community designated under section 1391 of title 26.
      (17) Low-income
        The term "low-income" means having an income, adjusted for
      family size, of not more than - 
          (A) for metropolitan areas, 80 percent of the area median
        income; and
          (B) for nonmetropolitan areas, the greater of - 
            (i) 80 percent of the area median income; or
            (ii) 80 percent of the statewide nonmetropolitan area
          median income.
      (18) State
        The term "State" has the same meaning as in section 1813 of
      this title.
      (19) Subsidiary
        The term "subsidiary" has the same meaning as in section 1813
      of this title, except that a community development financial
      institution that is a corporation shall not be considered to be a
      subsidiary of any insured depository institution or depository
      institution holding company that controls less than 25 percent of
      any class of the voting shares of such corporation, and does not
      otherwise control in any manner the election of a majority of the
      directors of the corporation.
      (20) Targeted population
        The term "targeted population" means individuals, or an
      identifiable group of individuals, including an Indian tribe, who
      - 
          (A) are low-income persons; or
          (B) otherwise lack adequate access to loans or equity
        investments.
      (21) Training program
        The term "training program" means the training program operated
      by the Fund under section 4708 of this title.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 103, Sept. 23, 1994, 108 Stat.
    2163.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Small Business Investment Act of 1958, referred to in par.
    (6), is Pub. L. 85-699, Aug. 21, 1958, 72 Stat. 689, as amended,
    which is classified principally to chapter 14B (Sec. 661 et seq.)
    of Title 15, Commerce and Trade. For complete classification of
    this Act to the Code, see Short Title note set out under section
    661 of Title 15 and Tables.
      The Alaska Native Claims Settlement Act, referred to in pars.
    (11) and (12), is Pub. L. 92-203, Dec. 18, 1971, 85 Stat. 688, as
    amended, which is classified generally to chapter 33 (Sec. 1601 et
    seq.) of Title 43, Public Lands. For complete classification of
    this Act to the Code, see Short Title note set out under section
    1601 of Title 43 and Tables.

-End-

-CITE-
    12 USC Sec. 4703                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4703. Establishment of national Fund for community development
      banking

-STATUTE-
    (a) Establishment
      (1) In general
        There is established a corporation to be known as the Community
      Development Financial Institutions Fund that shall have the
      duties and responsibilities specified by this subchapter and
      subchapter II of this chapter. The Fund shall have succession
      until dissolved. The offices of the Fund shall be in Washington,
      D.C. The Fund shall not be affiliated with or be within any other
      agency or department of the Federal Government.
      (2) Wholly owned Government corporation
        The Fund shall be a wholly owned Government corporation in the
      executive branch and shall be treated in all respects as an
      agency of the United States, except as otherwise provided in this
      subchapter.
    (b) Management of Fund
      (1) Appointment of Administrator
        The management of the Fund shall be vested in an Administrator,
      who shall be appointed by the President, by and with the advice
      and consent of the Senate. The Administrator shall not engage in
      any other business or employment during service as the
      Administrator.
      (2) Chief financial officer
        The Administrator shall appoint a chief financial officer, who
      shall have the authority and functions of an agency Chief
      Financial Officer under section 902 of title 31. In the event of
      a vacancy in the position of the Administrator or during the
      absence or disability of the Administrator, the chief financial
      officer shall perform the duties of the position of
      Administrator.
      (3) Other officers and employees
        The Administrator may appoint such other officers and employees
      of the Fund as the Administrator determines to be necessary or
      appropriate.
      (4) Expedited hiring
        During the 2-year period beginning on September 23, 1994, the
      Administrator may - 
          (A) appoint and terminate the individuals referred to in
        paragraphs (2) and (3) without regard to the civil service laws
        and regulations; and
          (B) fix the compensation of the individuals referred to in
        paragraph (3) without regard to the provisions of chapter 51
        and subchapter III of chapter 53 of title 5 relating to
        classification of positions and General Schedule pay rates,
        except that the rate of pay for such individuals may not exceed
        the rate payable for level V of the Executive Schedule under
        section 5316 of such title.
    (c) General powers
      In carrying out the functions of the Fund, the Administrator - 
        (1) shall have all necessary and proper authority to carry out
      this subchapter and subchapter II of this chapter;
        (2) shall have the power to adopt, alter, and use a corporate
      seal for the Fund, which shall be judicially noticed;
        (3) may adopt, amend, and repeal bylaws, rules, and regulations
      governing the manner in which business of the Fund may be
      conducted and such rules and regulations as may be necessary or
      appropriate to implement this subchapter and subchapter II of
      this chapter;
        (4) may enter into, perform, and enforce such agreements,
      contracts, and transactions as may be deemed necessary or
      appropriate to the conduct of activities authorized under this
      subchapter and subchapter II of this chapter;
        (5) may determine the character of and necessity for
      expenditures of the Fund and the manner in which they shall be
      incurred, allowed, and paid;
        (6) may utilize or employ the services of personnel of any
      agency or instrumentality of the United States with the consent
      of the agency or instrumentality concerned on a reimbursable or
      nonreimbursable basis; and
        (7) may execute all instruments necessary or appropriate in the
      exercise of any of the functions of the Fund under this
      subchapter and subchapter II of this chapter and may delegate to
      the officers of the Fund such of the powers and responsibilities
      of the Administrator as the Administrator deems necessary or
      appropriate for the administration of the Fund.
    (d) Advisory Board
      (1) Establishment
        There is established an advisory board to the Fund to be known
      as the Community Development Advisory Board, which shall be
      operated in accordance with the provisions of the Federal
      Advisory Committee Act, except that section 14 of that Act does
      not apply to the Board.
      (2) Membership
        The Board shall consist of 15 members, including - 
          (A) the Secretary of Agriculture or his or her designee;
          (B) the Secretary of Commerce or his or her designee;
          (C) the Secretary of Housing and Urban Development or his or
        her designee;
          (D) the Secretary of the Interior or his or her designee;
          (E) the Secretary of the Treasury or his or her designee;
          (F) the Administrator of the Small Business Administration or
        his or her designee; and
          (G) 9 private citizens, appointed by the President, who shall
        be selected, to the maximum extent practicable, to provide for
        national geographic representation and racial, ethnic, and
        gender diversity, including - 
            (i) 2 individuals who are officers of existing community
          development financial institutions;
            (ii) 2 individuals who are officers of insured depository
          institutions;
            (iii) 2 individuals who are officers of national consumer
          or public interest organizations;
            (iv) 2 individuals who have expertise in community
          development; and
            (v) 1 individual who has personal experience and
          specialized expertise in the unique lending and community
          development issues confronted by Indian tribes on Indian
          reservations.
      (3) Chairperson
        The members of the Board specified in paragraph (2)(G) shall
      select, by majority vote, a chairperson of the Board, who shall
      serve for a term of 2 years.
      (4) Board function
        It shall be the function of the Board to advise the
      Administrator on the policies of the Fund regarding activities
      under this subchapter. The Board shall not advise the
      Administrator on the granting or denial of any particular
      application.
      (5) Terms of private members
        (A) In general
          Each member of the Board appointed under paragraph (2)(G)
        shall serve for a term of 4 years.
        (B) Vacancies
          Any member appointed to fill a vacancy occurring prior to the
        expiration of the term for which the previous member was
        appointed shall be appointed for the remainder of such term.
        Members may continue to serve following the expiration of their
        terms until a successor is appointed.
      (6) Meetings
        The Board shall meet at least annually and at such other times
      as requested by the Administrator or the chairperson. A majority
      of the members of the Board shall constitute a quorum.
      (7) Reimbursement for expenses
        The members of the Board may receive reimbursement for travel,
      per diem, and other necessary expenses incurred in the
      performance of their duties, in accordance with the Federal
      Advisory Committee Act.
      (8) Costs and expenses
        The Fund shall provide to the Board all necessary staff and
      facilities.
    (e) Omitted
    (f) Government Corporation Control Act exemption
      Section 9107(b) of title 31, shall not apply to deposits of the
    Fund made pursuant to section 4707 of this title.
    (g) Limitation of Fund and Federal liability
      The liability of the Fund and the United States Government
    arising out of any investment in a community development financial
    institution in accordance with this subchapter shall be limited to
    the amount of the investment. The Fund shall be exempt from any
    assessments and other liabilities that may be imposed on
    controlling or principal shareholders by any Federal law or the law
    of any State, Territory, or the District of Columbia. Nothing in
    this subsection shall affect the application of any Federal tax
    law.
    (h) Prohibition on issuance of securities
      The Fund may not issue stock, bonds, debentures, notes, or other
    securities.
    (i) Omitted
    (j) Assisted institutions not United States instrumentalities
      A community development financial institution or other
    organization that receives assistance pursuant to this subchapter
    shall not be deemed to be an agency, department, or instrumentality
    of the United States.
    (k) Transition period
      (1) In general
        During the transition period, the Secretary of the Treasury may
      - 
          (A) assist in the establishment of the administrative
        functions of the Fund listed in paragraph (2); and
          (B) hire not more than 6 individuals to serve as employees of
        the Fund during the transition period.
      (2) Continued service
        Individuals hired in accordance with paragraph (1)(B) may
      continue to serve as employees of the Fund after the transition
      period.
      (3) Administrative functions
        The administrative functions referred to in paragraph (1)(A)
      shall be limited to - 
          (A) establishing accounting, information, and recordkeeping
        systems for the Fund; and
          (B) procuring office space, equipment, and supplies.
      (4) Expedited hiring
        During the transition period, the Secretary of the Treasury may
      - 
          (A) appoint and terminate the individuals referred to in
        paragraph (1)(B) without regard to the civil service laws and
        regulations; and
          (B) fix the compensation of the individuals referred to in
        paragraph (1)(B) without regard to the provisions of chapter 51
        and subchapter III of chapter 53 of title 5 relating to
        classification of positions and General Schedule pay rates,
        except that the rate of pay for such individuals may not exceed
        the rate payable for level V of the Executive Schedule under
        section 5316 of such title.
      (5) Certain employees
        During the transition period, employees of the Department of
      the Treasury may only comprise less than one-half of the total
      number of individuals hired in accordance with paragraph (1)(B).
      (6) Transition expenses
        Amounts previously appropriated to the Department of the
      Treasury may be used to pay obligations and expenses of the Fund
      incurred under this section, and such amounts may be reimbursed
      by the Fund to the Department of the Treasury from amounts
      appropriated to the Fund for fiscal year 1995.
      (7) "Transition period" defined
        For purposes of this subsection, the term "transition period"
      means the period beginning on September 23, 1994, and ending on
      the date on which the Administrator is appointed.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 104, Sept. 23, 1994, 108 Stat.
    2166.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The civil service laws, referred to in subsecs. (b)(4)(A) and
    (k)(4)(A), are set forth in Title 5, Government Organization and
    Employees. See, particularly, section 3301 et seq. of Title 5.
      The Federal Advisory Committee Act, referred to in subsec.
    (d)(1), (7), is Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, as
    amended, which is set out in the Appendix to Title 5.
      Federal tax law, referred to in subsec. (g), is classified
    generally to Title 26, Internal Revenue Code.

-COD-
                               CODIFICATION                           
      Section is comprised of section 104 of Pub. L. 103-325. Subsecs.
    (e) and (i) of section 104 of Pub. L. 103-325 amended section 9101
    of Title 31, Money and Finance, and section 5313 of Title 5,
    Government Organization and Employees, respectively.

-MISC1-
            ADMINISTRATION OF FUND BY SECRETARY OF THE TREASURY        
      Pub. L. 104-134, title I, Sec. 101(e) [title III], Apr. 26, 1996,
    110 Stat. 1321-257, 1321-294; renumbered title I, Pub. L. 104-140,
    Sec. 1(a), May 2, 1996, 110 Stat. 1327, provided in part: "That
    notwithstanding any other provision of law, for purposes of
    administering the Community Development Financial Institutions
    Fund, the Secretary of the Treasury shall have all powers and
    rights of the Administrator of the CDBFI Act [12 U.S.C. 4701 et
    seq.] and the Fund shall be within the Department of the Treasury."
      Similar provisions were contained in the following prior
    appropriations act:
      Pub. L. 104-19, title I, July 27, 1995, 109 Stat. 237.

-End-

-CITE-
    12 USC Sec. 4704                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4704. Applications for assistance

-STATUTE-
    (a) Form and procedures
      An application for assistance under this subchapter shall be
    submitted in such form and in accordance with such procedures as
    the Fund shall establish.
    (b) Minimum requirements
      Except as provided in sections 4705 and 4712 of this title, the
    Fund shall require an application - 
        (1) to establish that the applicant is, or will be, a community
      development financial institution;
        (2) to include a comprehensive strategic plan for the
      organization that contains - 
          (A) a business plan of not less than 5 years in duration that
        demonstrates that the applicant will be properly managed and
        will have the capacity to operate as a community development
        financial institution that will not be dependent upon
        assistance from the Fund for continued viability;
          (B) an analysis of the needs of the investment area or
        targeted population and a strategy for how the applicant will
        attempt to meet those needs;
          (C) a plan to coordinate use of assistance from the Fund with
        existing Federal, State, local, and tribal government
        assistance programs, and private sector financial services;
          (D) an explanation of how the proposed activities of the
        applicant are consistent with existing economic, community, and
        housing development plans adopted by or applicable to an
        investment area or targeted population; and
          (E) a description of how the applicant will coordinate with
        community organizations and financial institutions which will
        provide equity investments, loans, secondary markets, or other
        services to investment areas or targeted populations;

        (3) to include a detailed description of the applicant's plans
      and likely sources of funds to match the amount of assistance
      requested from the Fund;
        (4) in the case of an applicant that has previously received
      assistance under this subchapter, to demonstrate that the
      applicant - 
          (A) has substantially met its performance goals and otherwise
        carried out its responsibilities under this subchapter and the
        assistance agreement; and
          (B) will expand its operations into a new investment area or
        serve a new targeted population, offer more products or
        services, or increase the volume of its business;

        (5) in the case of an applicant with a prior history of serving
      investment areas or targeted populations, to demonstrate that the
      applicant - 
          (A) has a record of success in serving investment areas or
        targeted populations; and
          (B) will expand its operations into a new investment area or
        to serve a new targeted population, offer more products or
        services, or increase the volume of its current business; and

        (6) to include such other information as the Fund deems
      appropriate.
    (c) Preapplication outreach program
      The Fund shall provide an outreach program to identify and
    provide information to potential applicants and may provide
    technical assistance to potential applicants, but shall not assist
    in the preparation of any application.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 105, Sept. 23, 1994, 108 Stat.
    2170.)

-End-

-CITE-
    12 USC Sec. 4705                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4705. Community partnerships

-STATUTE-
    (a) Application
      An application for assistance may be filed jointly by a community
    development financial institution and a community partner to carry
    out a community partnership.
    (b) Application requirements
      The Fund shall require a community partnership application - 
        (1) to meet the minimum requirements established for community
      development financial institutions under section 4704(b) of this
      title, except that the criteria specified in paragraphs (1) and
      (2)(A) of section 4704(b) of this title shall not apply to the
      community partner;
        (2) to describe how each coapplicant will participate in
      carrying out the community partnership and how the partnership
      will enhance activities serving the investment area or targeted
      population; and
        (3) to demonstrate that the community partnership activities
      are consistent with the strategic plan submitted by the community
      development financial institution coapplicant.
    (c) Selection criteria
      The Fund shall consider a community partnership application based
    on - 
        (1) the community development financial institution coapplicant
      - 
          (A) meeting the minimum selection criteria described in
        section 4704 of this title; and
          (B) satisfying the selection criteria of section 4706 of this
        title;

        (2) the extent to which the community partner coapplicant will
      participate in carrying out the partnership;
        (3) the extent to which the community partnership will enhance
      the likelihood of success of the community development financial
      institution coapplicant's strategic plan; and
        (4) the extent to which service to the investment area or
      targeted population will be better performed by a partnership as
      opposed to the individual community development financial
      institution coapplicant.
    (d) Limitation on distribution of assistance
      Assistance provided upon approval of an application under this
    section shall be distributed only to the community development
    financial institution coapplicant, and shall not be used to fund
    any activities carried out directly by the community partner or an
    affiliate or subsidiary thereof.
    (e) Other requirements and limitations
      All other requirements and limitations imposed by this subchapter
    on a community development financial institution assisted under
    this subchapter shall apply (in the manner that the Fund determines
    to be appropriate) to assistance provided to carry out community
    partnerships. The Fund may establish additional guidelines and
    restrictions on the use of Federal funds to carry out community
    partnerships.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 106, Sept. 23, 1994, 108 Stat.
    2171.)

-End-

-CITE-
    12 USC Sec. 4706                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4706. Selection of institutions

-STATUTE-
    (a) Selection criteria
      Except as provided in section 4712 of this title, the Fund shall,
    in its sole discretion, select community development financial
    institution applicants meeting the requirements of section 4704 of
    this title for assistance based on - 
        (1) the likelihood of success of the applicant in meeting the
      goals of its comprehensive strategic plan;
        (2) the experience and background of the management team;
        (3) the extent of need for equity investments, loans, and
      development services within the investment areas or targeted
      populations;
        (4) the extent of economic distress within the investment areas
      or the extent of need within the targeted populations, as those
      factors are measured by objective criteria;
        (5) the extent to which the applicant will concentrate its
      activities on serving its investment areas or targeted
      populations;
        (6) the amount of firm commitments to meet or exceed the
      matching requirements and the likely success of the plan for
      raising the balance of the match;
        (7) the extent to which the matching funds are derived from
      private sources;
        (8) the extent to which the proposed activities will expand
      economic opportunities within the investment areas or the
      targeted populations;
        (9) whether the applicant is, or will become, an insured
      community development financial institution;
        (10) the extent of support from the investment areas or
      targeted populations;
        (11) the extent to which the applicant is, or will be,
      community-owned or community-governed;
        (12) the extent to which the applicant will increase its
      resources through coordination with other institutions or
      participation in a secondary market;
        (13) in the case of an applicant with a prior history of
      serving investment areas or targeted populations, the extent of
      success in serving them; and
        (14) other factors deemed to be appropriate by the Fund.
    (b) Geographic diversity
      In selecting applicants for assistance, the Fund shall seek to
    fund a geographically diverse group of applicants, which shall
    include applicants from metropolitan, nonmetropolitan, and rural
    areas.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 107, Sept. 23, 1994, 108 Stat.
    2172.)

-End-

-CITE-
    12 USC Sec. 4707                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4707. Assistance provided by Fund

-STATUTE-
    (a) Forms of assistance
      (1) In general
        The Fund may provide - 
          (A) financial assistance through equity investments,
        deposits, credit union shares, loans, and grants; and
          (B) technical assistance - 
            (i) directly;
            (ii) through grants; or
            (iii) by contracting with organizations that possess
          expertise in community development finance, without regard to
          whether the organizations receive or are eligible to receive
          assistance under this subchapter.
      (2) Equity investments
        (A) Limitation on equity investments
          The Fund shall not own more than 50 percent of the equity of
        a community development financial institution and may not
        control the operations of such institution. The Fund may hold
        only transferable, nonvoting equity investments in the
        institution. Such equity investments may provide for
        convertibility to voting stock upon transfer by the Fund.
        (B) Fund deemed not to control
          Notwithstanding any other provision of law, the Fund shall
        not be deemed to control a community development financial
        institution by reason of any assistance provided under this
        subchapter for the purpose of any other applicable law to the
        extent that the Fund complies with subparagraph (A). Nothing in
        this subparagraph shall affect the application of any Federal
        tax law.
      (3) Deposits
        Deposits made pursuant to this section in an insured community
      development financial institution shall not be subject to any
      requirement for collateral or security.
      (4) Limitations on obligations
        Direct loan obligations may be incurred by the Fund only to the
      extent that appropriations of budget authority to cover their
      cost, as defined in section 661a(5) of title 2, are made in
      advance.
    (b) Uses of financial assistance
      (1) In general
        Financial assistance made available under this subchapter may
      be used by assisted community development financial institutions
      to serve investment areas or targeted populations by developing
      or supporting - 
          (A) commercial facilities that promote revitalization,
        community stability, or job creation or retention;
          (B) businesses that - 
            (i) provide jobs for low-income people or are owned by low-
          income people; or
            (ii) enhance the availability of products and services to
          low-income people;

          (C) community facilities;
          (D) the provision of basic financial services;
          (E) housing that is principally affordable to low-income
        people, except that assistance used to facilitate homeownership
        shall only be used for services and lending products - 
            (i) that serve low-income people; and
            (ii) that - 
              (I) are not provided by other lenders in the area; or
              (II) complement the services and lending products
            provided by other lenders that serve the investment area or
            targeted population; and

          (F) other businesses and activities deemed appropriate by the
        Fund.
      (2) Limitations
        No assistance made available under this subchapter may be
      expended by a community development financial institution (or an
      organization receiving assistance under section 4712 of this
      title) to pay any person to influence or attempt to influence any
      agency, elected official, officer, or employee of a State or
      local government in connection with the making, award, extension,
      continuation, renewal, amendment, or modification of any State or
      local government contract, grant, loan, or cooperative agreement
      (as such terms are defined in section 1352 of title 31).
    (c) Uses of technical assistance
      (1) Types of activities
        Technical assistance may be used for activities that enhance
      the capacity of a community development financial institution,
      such as training of management and other personnel and
      development of programs and investment or loan products.
      (2) Availability of technical assistance
        The Fund may provide technical assistance, regardless of
      whether or not the recipient also receives financial assistance
      under this section.
    (d) Amount of assistance
      (1) In general
        Except as provided in paragraph (2), the Fund may provide not
      more than $5,000,000 of assistance, in the aggregate, during any
      3-year period to any 1 community development financial
      institution and its subsidiaries and affiliates.
      (2) Exception
        The Fund may provide not more than $3,750,000 of assistance in
      addition to the amount specified in paragraph (1) during the same
      3-year period to an existing community development financial
      institution that proposes to establish a subsidiary or affiliate
      for the purpose of serving an investment area or targeted
      population outside of any State and outside of any metropolitan
      area presently served by the institution, if - 
          (A) the subsidiary or affiliate - 
            (i) would be a community development financial institution;
          and
            (ii) independently - 
              (I) meets the selection criteria described in section
            4704 of this title; and
              (II) satisfies the selection criteria of section 4706 of
            this title; and

          (B) no other application for assistance to serve the
        investment area or targeted population has been submitted to
        the Administrator within a reasonable period of time preceding
        the date of receipt of the application at issue.
      (3) Timing of assistance
        Assistance may be provided as described in paragraphs (1) and
      (2) in a lump sum or over a period of time, as determined by the
      Fund.
    (e) Matching requirements
      (1) In general
        Assistance other than technical assistance shall be matched
      with funds from sources other than the Federal Government on the
      basis of not less than one dollar for each dollar provided by the
      Fund. Such matching funds shall be at least comparable in form
      and value to assistance provided by the Fund. The Fund shall
      provide no assistance (other than technical assistance) until a
      community development financial institution has secured firm
      commitments for the matching funds required.
      (2) Exception
        In the case of an applicant with severe constraints on
      available sources of matching funds, the Fund may permit an
      applicant to comply with the matching requirements of paragraph
      (1) by - 
          (A) reducing such matching requirement by 50 percent; or
          (B) permitting an applicant to provide matching funds in a
        form to be determined at the discretion of the Fund, if such
        applicant - 
            (i) has total assets of less than $100,000;
            (ii) serves nonmetropolitan or rural areas; and
            (iii) is not requesting more than $25,000 in assistance.
      (3) Limitation
        Not more than 25 percent of the total funds disbursed in any
      fiscal year by the Fund may be matched as authorized under
      paragraph (2).
      (4) Construction of "Federal Government funds"
        For purposes of this subsection, notwithstanding section
      105(a)(9) of the Housing and Community Development Act of 1974
      [42 U.S.C. 5305(a)(9)], funds provided pursuant to such Act shall
      be considered to be Federal Government funds.
    (f) Terms and conditions
      (1) Soundness of unregulated institutions
        The Fund shall - 
          (A) ensure, to the maximum extent practicable, that each
        community development financial institution (other than an
        insured community development financial institution or
        depository institution holding company) assisted under this
        subchapter is financially and managerially sound and maintains
        appropriate internal controls;
          (B) require such institution to submit, not less than once
        during each 18-month period, a statement of financial condition
        audited by an independent certified public accountant as part
        of the report required by section 4714(e)(1) of this title; and
          (C) require that all assistance granted under this section is
        used by the community development financial institution or
        community development partnership in a manner consistent with
        the purposes of this subchapter.
      (2) Assistance agreement
        (A) In general
          Before providing any assistance under this subchapter, the
        Fund and each community development financial institution to be
        assisted shall enter into an agreement that requires the
        institution to comply with performance goals and abide by other
        terms and conditions pertinent to assistance received under
        this subchapter.
        (B) Performance goals
          Performance goals shall be negotiated between the Fund and
        each community development financial institution receiving
        assistance based upon the strategic plan submitted pursuant to
        section 4704(b)(2) of this title. Such goals may be modified
        with the consent of the parties, or as provided in subparagraph
        (C). Performance goals for insured community development
        financial institutions shall be determined in consultation with
        the appropriate Federal banking agency.
        (C) Sanctions
          The agreement shall provide that, in the event of fraud,
        mismanagement, noncompliance with this subchapter, or
        noncompliance with the terms of the agreement, the Fund, in its
        discretion, may - 
            (i) require changes to the performance goals imposed
          pursuant to subparagraph (B);
            (ii) require changes to the strategic plan submitted
          pursuant to section 4704(b)(2) of this title;
            (iii) revoke approval of the application;
            (iv) reduce or terminate assistance;
            (v) require repayment of assistance;
            (vi) bar an applicant from reapplying for assistance from
          the Fund; and
            (vii) take such other actions as the Fund deems
          appropriate.
        (D) Consultation with tribal governments
          In reviewing the performance of any assisted community
        development financial institution, the investment area of which
        includes an Indian reservation, or the targeted population of
        which includes an Indian tribe, the Fund shall consult with,
        and seek input from, any appropriate tribal government.
    (g) Authority to sell equity investments and loans
      The Fund may, at any time, sell its equity investments and loans,
    but the Fund shall retain the power to enforce limitations on
    assistance entered into in accordance with the requirements of this
    subchapter until the performance goals related to the investment or
    loan have been met.
    (h) No authority to limit supervision and regulation
      Nothing in this subchapter shall affect any authority of the
    appropriate Federal banking agency to supervise and regulate any
    institution or company.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 108, Sept. 23, 1994, 108 Stat.
    2172.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Federal tax law, referred to in subsec. (a)(2)(B), is classified
    generally to Title 26, Internal Revenue Code.
      The Housing and Community Development Act of 1974, referred to in
    subsec. (e)(4), is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633, as
    amended. For complete classification of this Act to the Code, see
    Short Title note set out under section 5301 of Title 42, The Public
    Health and Welfare, and Tables.

-End-

-CITE-
    12 USC Sec. 4708                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4708. Training

-STATUTE-
    (a) In general
      The Fund may operate a training program to increase the capacity
    and expertise of community development financial institutions and
    other members of the financial services industry to undertake
    community development finance activities.
    (b) Program activities
      The training program shall provide educational programs to assist
    community development financial institutions and other members of
    the financial services industry in developing lending and
    investment products, underwriting and servicing loans, managing
    equity investments, and providing development services targeted to
    areas of economic distress, low-income persons, and persons who
    lack adequate access to loans and equity investments.
    (c) Participation
      The training program shall be made available to community
    development financial institutions and other members of the
    financial services industry that serve or seek to serve areas of
    economic distress, low-income persons, and persons who lack
    adequate access to loans and equity investments.
    (d) Contracting
      The Fund may offer the training program described in this section
    directly or through a contract with other organizations. The Fund
    may contract to provide the training program through organizations
    that possess special expertise in community development, without
    regard to whether the organizations receive or are eligible to
    receive assistance under this subchapter.
    (e) Coordination
      The Fund shall coordinate with other appropriate Federal
    departments or agencies that operate similar training programs in
    order to prevent duplicative efforts.
    (f) Regulatory fee for providing training services
      (1) General rule
        The Fund may, at the discretion of the Administrator and in
      accordance with this subsection, assess and collect regulatory
      fees solely to cover the costs of the Fund in providing training
      services under a training program operated in accordance with
      this section.
      (2) Persons subject to fee
        Fees may be assessed under paragraph (1) only on persons who
      participate in the training program.
      (3) Limitation on manner of collection
        Fees may be assessed and collected under this subsection only
      in such manner as may reasonably be expected to result in the
      collection of an aggregate amount of fees during any fiscal year
      which does not exceed the aggregate costs of the Fund for such
      year in providing training services under a training program
      operated in accordance with this section (!1)

      (4) Limitation on amount of fee
        The amount of any fee assessed under this subsection on any
      person may not exceed the amount which is reasonably based on the
      proportion of the training services provided under a training
      program operated in accordance with this section which relate to
      such person.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 109, Sept. 23, 1994, 108 Stat.
    2176.)

-FOOTNOTE-               

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

-End-

-CITE-
    12 USC Sec. 4709                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4709. Encouragement of private entities

-STATUTE-
      The Fund may facilitate the organization of corporations in which
    the Federal Government has no ownership interest. The purpose of
    any such entity shall be to assist community development financial
    institutions in a manner that is complementary to the activities of
    the Fund under this subchapter. Any such entity shall be managed
    exclusively by persons not employed by the Federal Government or
    any agency or instrumentality thereof, or by any State or local
    government or any agency or instrumentality thereof.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 110, Sept. 23, 1994, 108 Stat.
    2177.)

-End-

-CITE-
    12 USC Sec. 4710                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4710. Collection and compilation of information

-STATUTE-
      The Fund shall - 
        (1) collect and compile information pertinent to community
      development financial institutions that will assist in creating,
      developing, expanding, and preserving such institutions; and
        (2) make such information available to promote the purposes of
      this subchapter.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 111, Sept. 23, 1994, 108 Stat.
    2177.)

-End-

-CITE-
    12 USC Sec. 4711                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4711. Investment of receipts and proceeds

-STATUTE-
    (a) Establishment of account
      Any dividends on equity investments and proceeds from the
    disposition of investments, deposits, or credit union shares that
    are received by the Fund as a result of assistance provided
    pursuant to section 4707 or 4712 of this title, and any fees
    received pursuant to section 4708(f) of this title shall be
    deposited and accredited to an account of the Fund in the United
    States Treasury (hereafter in this section referred to as "the
    account") established to carry out the purpose of this subchapter.
    (b) Investments
      Upon request of the Administrator, the Secretary of the Treasury
    shall invest amounts deposited in the account in public debt
    securities with maturities suitable to the needs of the Fund, as
    determined by the Administrator, and bearing interest at rates
    determined by the Secretary of the Treasury, comparable to current
    market yields on outstanding marketable obligations of the United
    States of similar maturities.
    (c) Availability
      Amounts deposited into the account and interest earned on such
    amounts pursuant to this section shall be available to the Fund
    until expended.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 112, Sept. 23, 1994, 108 Stat.
    2177.)

-End-

-CITE-
    12 USC Sec. 4712                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4712. Capitalization assistance to enhance liquidity

-STATUTE-
    (a) Assistance
      (1) In general
        The Fund may provide assistance for the purpose of providing
      capital to organizations to purchase loans or otherwise enhance
      the liquidity of community development financial institutions, if
      - 
          (A) the primary purpose of such organizations is to promote
        community development; and
          (B) any assistance received is matched with funds - 
            (i) from sources other than the Federal Government;
            (ii) on the basis of not less than one dollar for each
          dollar provided by the Fund; and
            (iii) that are comparable in form and value to the
          assistance provided by the Fund.
      (2) Limitation on other assistance
        An organization that receives assistance under this section may
      not receive other financial or technical assistance under this
      subchapter.
      (3) Construction of Federal Government funds
        For purposes of this subsection, notwithstanding section
      105(a)(9) of the Housing and Community Development Act of 1974
      [42 U.S.C. 5305(a)(9)], funds provided pursuant to such Act shall
      be considered to be Federal Government funds.
    (b) Selection
      The selection of organizations to receive assistance under this
    section shall be at the discretion of the Fund and in accordance
    with criteria established by the Fund. In establishing such
    criteria, the Fund shall take into account the criteria contained
    in sections 4704(b) and 4706 of this title, as appropriate.
    (c) Amount of assistance
      The Fund may provide a total of not more than $5,000,000 of
    assistance to an organization or its subsidiaries or affiliates
    under this section during any 3-year period. Assistance may be
    provided in a lump sum or over a period of time, as determined by
    the Fund.
    (d) Audit and report requirements
      Organizations that receive assistance from the Fund in accordance
    with this section shall - 
        (1) submit to the Fund, not less than once in every 18-month
      period, financial statements audited by an independent certified
      public accountant, as part of the report required by paragraph
      (2);
        (2) submit an annual report on its activities; and
        (3) keep such records as may be necessary to disclose the
      manner in which any assistance under this section is used.
    (e) Limitations on liability
      (1) Liability of Fund
        The liability of the Fund and the United States Government
      arising out of the provision of assistance to any organization in
      accordance with this section shall be limited to the amount of
      such assistance. The Fund shall be exempt from any assessments
      and any other liabilities that may be imposed on controlling or
      principal shareholders by any Federal law or the law of any
      State, or territory. Nothing in this paragraph shall affect the
      application of Federal tax law.
      (2) Liability of Government
        This section does not oblige the Federal Government, either
      directly or indirectly, to provide any funds to any organization
      assisted pursuant to this section, or to honor, reimburse, or
      otherwise guarantee any obligation or liability of such an
      organization. This section shall not be construed to imply that
      any such organization or any obligations or securities of any
      such organization are backed by the full faith and credit of the
      United States.
    (f) Use of proceeds
      Any proceeds from the sale of loans by an organization assisted
    under this section shall be used by the seller for community
    development purposes.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 113, Sept. 23, 1994, 108 Stat.
    2178.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Housing and Community Development Act of 1974, referred to in
    subsec. (a)(3), is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633, as
    amended. For complete classification of this Act to the Code, see
    Short Title note set out under section 5301 of Title 42, The Public
    Health and Welfare, and Tables.
      Federal tax law, referred to in subsec. (e)(1), is classified
    generally to Title 26, Internal Revenue Code.

-End-

-CITE-
    12 USC Sec. 4713                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4713. Incentives for depository institution participation

-STATUTE-
    (a) Function of Administrator
      (1) In general
        Of any funds appropriated pursuant to the authorization in
      section 4718(a) of this title, the funds made available for use
      in carrying out this section in accordance with section
      4718(a)(4) of this title shall be administered by the
      Administrator of the Fund, in consultation with - 
          (A) the Federal banking agencies (as defined in section 3 of
        the Federal Deposit Insurance Act [12 U.S.C. 1813]) and the
        National Credit Union Administration;
          (B) the individuals named pursuant to clauses (ii) and (iv)
        of section 4703(d)(2)(G) of this title; and
          (C) any other representatives of insured depository
        institutions or other persons as the Administrator may
        determine to be appropriate.
      (2) Applicability of Bank Enterprise Act of 1991
        Subject to subsection (b) of this section and the consultation
      requirement of paragraph (1) - 
          (A) section 233 of the Bank Enterprise Act of 1991 [12 U.S.C.
        1834a] shall be applicable to the Administrator, for purposes
        of this section, in the same manner and to the same extent that
        such section is applicable to the Community Enterprise
        Assessment Credit Board;
          (B) the Administrator shall, for purposes of carrying out
        this section and section 233 of the Bank Enterprise Act of 1991
        [12 U.S.C. 1834a] - 
            (i) have all powers and rights of the Community Enterprise
          Assessment Credit Board under section 233 of the Bank
          Enterprise Act of 1991 to administer and enforce any
          provision of such section 233 which is applicable to the
          Administrator under this section; and
            (ii) shall be subject to the same duties and restrictions
          imposed on the Community Enterprise Assessment Credit Board;
          and

          (C) the Administrator shall - 
            (i) have all powers and rights of an appropriate Federal
          banking agency under section 233(b)(2) of the Bank Enterprise
          Act of 1991 [12 U.S.C. 1834a(b)(2)] to approve or disapprove
          the designation of qualified distressed communities for
          purposes of this section and provide information and
          assistance with respect to any such designation; and
            (ii) shall be subject to the same duties imposed on the
          appropriate Federal banking agencies under such section
          233(b)(2).
      (3) Awards
        The Administrator shall determine the amount of assessment
      credits, and shall make awards of those credits.
      (4) Regulations and guidelines
        The Administrator may prescribe such regulations and issue such
      guidelines as the Administrator determines to be appropriate to
      carry out this section.
      (5) Exceptions to applicability
        Notwithstanding paragraphs (1) through (4) of this subsection,
      subsections (a)(1) and (e)(2) of section 233 of the Bank
      Enterprise Act of 1991 [12 U.S.C. 1834a(a)(1), (e)(2)], and any
      other provision of the Federal Deposit Insurance Act [12 U.S.C.
      1811 et seq.] relating to the Bank Enterprise Act of 1991, do not
      apply to the Administrator for purposes of this subchapter.
    (b) Provisions relating to administration of this section
      (1) New lifeline accounts
        In applying section 233 of the Bank Enterprise Act of 1991 [12
      U.S.C. 1834a] for purposes of this section, the Administrator
      shall treat the provision of new lifeline accounts by an insured
      depository institution as an activity which is qualified to be
      taken into account under section 233(a)(2)(A) of such Act.
      (2) Determination of assessment credit
        For the purpose of this subchapter, section 233(a)(3) of the
      Bank Enterprise Act of 1991 (12 U.S.C. 1834a(a)(3)) shall be
      applied by substituting the following text:
      "(3) Amount of assessment credit
        "The amount of an assessment credit which may be awarded to an
      insured depository institution to carry out the qualified
      activities of the institution or of the subsidiaries of the
      institution pursuant to this section for any semiannual period
      shall be equal to the sum of - 
          "(A) with respect to qualifying activities described in
        paragraph (2)(A), the amount which is equal to - 
            "(i) 5 percent of the sum of the amounts determined under
          such subparagraph, in the case of an institution which is not
          a community development financial institution; or
            "(ii) 15 percent of the sum of the amounts determined under
          such subparagraph, in the case of an institution which is a
          community development financial institution; and

          "(B) with respect to qualifying activities described in
        paragraph (2)(C), 15 percent of the amounts determined under
        such subparagraph."
      (3) Adjustment of percentage
        Section 233(a)(5) of the Bank Enterprise Act of 1991 [12 U.S.C.
      1834a(a)(5)] shall be applied for purposes of this section by - 
          (A) substituting "institutions which are community
        development financial institutions" for "institutions which
        meet the community development organization requirements under
        section 234 [12 U.S.C. 1834b]"; and
          (B) substituting "institutions which are not community
        development financial institutions" for "institutions which do
        not meet such requirements".
      (4) Designation of QDC
        Section 233(b)(2) of the Bank Enterprise Act of 1991 [12 U.S.C.
      1834a(b)(2)] shall be applied for purposes of this section
      without regard to subparagraph (A)(ii) of such section 233(b)(2).
      (5) Operation on annual basis
        The Administrator may, in the Administrator's discretion, apply
      section 233 of the Bank Enterprise Act of 1991 for purposes of
      this section by providing community enterprise assessment credits
      with respect to annual periods rather than semiannual periods.
      (6) Outreach
        The Administrator shall ensure that information about the Bank
      Enterprise Act of 1991 under this section is widely disseminated
      to all interested parties.
      (7) Qualified activities
        For the purpose of this subchapter, section 233(a)(2)(A) of the
      Bank Enterprise Act of 1991 shall be applied by inserting "of the
      increase" after "the amount".

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 114, Sept. 23, 1994, 108 Stat.
    2179.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Bank Enterprise Act of 1991, referred to in subsecs. (a)(2),
    (5) and (b)(6), is subtitle C (Secs. 231-234) of title II of Pub.
    L. 102-242, Dec. 19, 1991, 105 Stat. 2308-2315, which enacted
    sections 1834 to 1834b of this title, amended section 1817 of this
    title, and enacted provisions set out as a note under section 1811
    of this title. For complete classification of this Act to the Code,
    see Short Title of 1991 Amendment note set out under section 1811
    of this title and Tables.
      The Federal Deposit Insurance Act, referred to in subsec. (a)(5),
    is act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as amended,
    which is classified generally to chapter 16 (Sec. 1811 et seq.) of
    this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 1811 of this title and
    Tables.

-COD-
                               CODIFICATION                           
      Section is comprised of section 114 of Pub. L. 103-325. Subsec.
    (c) of section 114 of Pub. L. 103-325 amended section 1834a of this
    title.

-End-

-CITE-
    12 USC Sec. 4714                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4714. Recordkeeping

-STATUTE-
    (a) In general
      A community development financial institution receiving
    assistance from the Fund shall keep such records, for such periods
    as may be prescribed by the Fund and necessary to disclose the
    manner in which any assistance under this subchapter is used and to
    demonstrate compliance with the requirements of this subchapter.
    (b) User profile information
      The Fund shall require each community development financial
    institution or other organization receiving assistance from the
    Fund to compile such data, as is determined to be appropriate by
    the Fund, on the gender, race, ethnicity, national origin, or other
    pertinent information concerning individuals that utilize the
    services of the assisted institution to ensure that targeted
    populations and low-income residents of investment areas are
    adequately served.
    (c) Access to records
      The Fund shall have access on demand, for the purpose of
    determining compliance with this subchapter, to any records of a
    community development financial institution or other organization
    that receives assistance from the Fund.
    (d) Review
      Not less than annually, the Fund shall review the progress of
    each assisted community development financial institution in
    carrying out its strategic plan, meeting its performance goals, and
    satisfying the terms and conditions of its assistance agreement.
    (e) Reporting
      (1) Annual reports
        The Fund shall require each community development financial
      institution receiving assistance under this subchapter to submit
      an annual report to the Fund on its activities, its financial
      condition, and its success in meeting performance goals, in
      satisfying the terms and conditions of its assistance agreement,
      and in complying with other requirements of this subchapter, in
      such form and manner as the Fund shall specify.
      (2) Availability of reports
        The Fund, after deleting or redacting any material as
      appropriate to protect privacy or proprietary interests, shall
      make such reports submitted under paragraph (1) available for
      public inspection.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 115, Sept. 23, 1994, 108 Stat.
    2184.)

-End-

-CITE-
    12 USC Sec. 4715                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4715. Special provisions with respect to institutions that are
      supervised by Federal banking agencies

-STATUTE-
    (a) Consultation with appropriate agencies
      The Fund shall consult with and consider the views of the
    appropriate Federal banking agency prior to providing assistance
    under this subchapter to - 
        (1) an insured community development financial institution;
        (2) any community development financial institution that is
      examined by or subject to the reporting requirements of an
      appropriate Federal banking agency; or
        (3) any community development financial institution that has as
      its community partner an institution that is examined by or
      subject to the reporting requirements of an appropriate Federal
      banking agency.
    (b) Requests for information, reports, or records
      (1) In general
        Except as provided in paragraph (4), notwithstanding any other
      provisions of this subchapter, prior to directly requesting
      information from or imposing reporting or recordkeeping
      requirements on an insured community development financial
      institution or other institution that is examined by or subject
      to the reporting requirements of an appropriate Federal banking
      agency, the Fund shall consult with the appropriate Federal
      banking agency to determine if the information requested is
      available from or may be obtained by such agency in the form,
      format, or detail required by the Fund.
      (2) Timing of response from appropriate Federal banking agency
        If the information, reports, or records requested by the Fund
      pursuant to paragraph (1) are not provided by the appropriate
      Federal banking agency in less than 15 calendar days after the
      date on which the material is requested, the Fund may request the
      information from or impose the recordkeeping or reporting
      requirements directly on such institutions with notice to the
      appropriate Federal banking agency.
      (3) Elimination of duplicative information and reporting
        requirements
        The Fund shall use any information provided the appropriate
      Federal banking agency under this section to the extent
      practicable to eliminate duplicative requests for information and
      reports from, and recordkeeping by an insured community
      development financial institution or other institution that is
      examined by or subject to the reporting requirements of an
      appropriate Federal banking agency.
      (4) Exception
        Notwithstanding paragraphs (1) and (2), the Fund may require an
      insured community development financial institution or other
      institution that is examined by or subject to the reporting
      requirements of an appropriate Federal banking agency to provide
      information with respect to the institution's implementation of
      its strategic plan or compliance with the terms of its assistance
      agreement under this subchapter, after providing notice to the
      appropriate Federal banking agency.
    (c) Exclusion for examination reports
      Nothing in this section shall be construed to permit the Fund to
    require an insured community development financial institution or
    other institution that is examined by or subject to the reporting
    requirements of an appropriate Federal banking agency, to obtain,
    maintain, or furnish an examination report of any appropriate
    Federal banking agency or records contained in or related to such a
    report.
    (d) Sharing of information
      The Fund and the appropriate Federal banking agency shall
    promptly notify each other of material concerns about an insured
    community development financial institution or other institution
    that is examined by or subject to the reporting requirements of an
    appropriate Federal banking agency, and share appropriate
    information relating to such concerns.
    (e) Disclosure prohibited
      Neither the Fund nor the appropriate Federal banking agency shall
    disclose confidential information obtained pursuant to this section
    from any party without the written consent of that party.
    (f) Privilege maintained
      The Fund, the appropriate Federal banking agency, and any other
    party providing information under this section shall not be deemed
    to have waived any privilege applicable to any information or data,
    or any portion thereof, by providing such information or data to
    the other party or by permitting such data or information, or any
    copies or portions thereof, to be used by the other party.
    (g) Exceptions
      Nothing in this section shall authorize the Fund or the
    appropriate Federal banking agency to withhold information from the
    Congress or prevent it from complying with a request for
    information from a Federal department or agency in compliance with
    applicable law.
    (h) Sanctions
      (1) Notification
        The Fund shall notify the appropriate Federal banking agency
      before imposing any sanction pursuant to the authority in section
      4707(f)(2)(C) of this title on an insured community development
      financial institution or other institution that is examined by or
      subject to the reporting requirements of that agency.
      (2) Exceptions
        The Fund shall not impose a sanction referred to in paragraph
      (1) if the appropriate Federal banking agency, in writing, not
      later than 30 calendar days after receiving notice from the Fund -
       
          (A) objects to the proposed sanction;
          (B) determines that the sanction would - 
            (i) have a material adverse effect on the safety and
          soundness of the institution; or
            (ii) impede or interfere with an enforcement action against
          that institution by that agency;

          (C) proposes a comparable alternative action; and
          (D) specifically explains - 
            (i) the basis for the determination under subparagraph (B)
          and, if appropriate, provides documentation to support the
          determination; and
            (ii) how the alternative action suggested pursuant to
          subparagraph (C) would be as effective as the sanction
          proposed by the Fund in securing compliance with this
          subchapter and deterring future noncompliance.
    (i) Safety and soundness considerations
      The Fund and each appropriate Federal banking agency shall
    cooperate and respond to requests from each other and from other
    appropriate Federal banking agencies in a manner that ensures the
    safety and soundness of the insured community development financial
    institution or other institution that is examined by or subject to
    the reporting requirements of an appropriate Federal banking
    agency.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 116, Sept. 23, 1994, 108 Stat.
    2185.)

-End-

-CITE-
    12 USC Sec. 4716                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4716. Studies and reports; examination and audit

-STATUTE-
    (a) Annual report by Fund
      The Fund shall conduct an annual evaluation of the activities
    carried out by the Fund and the community development financial
    institutions and other organizations assisted pursuant to this
    subchapter, and shall submit a report of its findings to the
    President and the Congress not later than 120 days after the end of
    each fiscal year of the Fund. The report shall include financial
    statements audited in accordance with subsection (f) of this
    section.
    (b) Optional studies
      The Fund may conduct such studies as the Fund determines
    necessary to further the purpose of this subchapter and to
    facilitate investment in distressed communities. The findings of
    any studies conducted pursuant to this subsection shall be included
    in the report required by subsection (a) of this section.
    (c) Native American lending study
      (1) In general
        The Fund shall conduct a study on lending and investment
      practices on Indian reservations and other land held in trust by
      the United States. Such study shall - 
          (A) identify barriers to private financing on such lands; and
          (B) identify the impact of such barriers on access to capital
        and credit for Native American populations.
      (2) Report
        Not later than 12 months after the date on which the
      Administrator is appointed, the Fund shall submit a report to the
      President and the Congress that - 
          (A) contains the findings of the study conducted under
        paragraph (1);
          (B) recommends any necessary statutory and regulatory changes
        to existing Federal programs; and
          (C) makes policy recommendations for community development
        financial institutions, insured depository institutions,
        secondary market institutions, and other private sector capital
        institutions to better serve such populations.
    (d) Investment, governance, and role of Fund
      Thirty months after the appointment and qualification of the
    Administrator, the Comptroller General of the United States shall
    submit to the President and the Congress a study evaluating the
    structure, governance, and performance of the Fund.
    (e) Consultation
      In the conduct of the studies required under this section, the
    Fund shall consult, as appropriate, with the Comptroller of the
    Currency, the Federal Deposit Insurance Corporation, the Board of
    Governors of the Federal Reserve System, the Federal Housing
    Finance Board, the Farm Credit Administration, the Director of the
    Office of Thrift Supervision, the National Credit Union
    Administration Board, Indian tribal governments, community
    reinvestment organizations, civil rights organizations, consumer
    organizations, financial organizations, and such representatives of
    agencies or other persons, at the discretion of the Fund.
    (f) Examination and audit
      The financial statements of the Fund shall be audited in
    accordance with section 9105 of title 31, except that audits
    required by section 9105(a) of such title shall be performed
    annually.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 117, Sept. 23, 1994, 108 Stat.
    2187.)

-End-

-CITE-
    12 USC Sec. 4717                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4717. Enforcement

-STATUTE-
    (a) Regulations
      (1) In general
        Not later than 180 days after the appointment and qualification
      of the Administrator, the Fund shall promulgate such regulations
      as may be necessary to carry out this subchapter.
      (2) Regulations required
        The regulations promulgated under paragraph (1) shall include
      regulations applicable to community development financial
      institutions that are not insured depository institutions to - 
          (A) prevent conflicts of interest on the part of directors,
        officers, and employees of community development financial
        institutions as the Fund determines to be appropriate; and
          (B) establish such standards with respect to loans by a
        community development financial institution to any director,
        officer, or employee of such institution as the Fund determines
        to be appropriate, including loan amount limitations.
    (b) Administrative enforcement
      The provisions of this subchapter, and regulations prescribed and
    agreements entered into under this subchapter, shall be enforced
    under section 8 of the Federal Deposit Insurance Act [12 U.S.C.
    1818] by the appropriate Federal banking agency, in the case of an
    insured community development financial institution. A violation of
    this subchapter, or any regulation prescribed under or any
    agreement entered into under this subchapter, shall be treated as a
    violation of the Federal Deposit Insurance Act [12 U.S.C. 1811 et
    seq.].

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 119, Sept. 23, 1994, 108 Stat.
    2188.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Deposit Insurance Act, referred to in subsec. (b), is
    act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as amended,
    which is classified generally to chapter 16 (Sec. 1811 et seq.) of
    this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 1811 of this title and
    Tables.

-COD-
                               CODIFICATION                           
      Section is comprised of section 119 of Pub. L. 103-325. Subsec.
    (c) of section 119 of Pub. L. 103-325 amended section 657 of Title
    18, Crimes and Criminal Procedure.

-End-

-CITE-
    12 USC Sec. 4718                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER I - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL
                    INSTITUTIONS                

-HEAD-
    Sec. 4718. Authorization of appropriations

-STATUTE-
    (a) Fund authorization
      (1) In general
        To carry out this subchapter, there are authorized to be
      appropriated to the Fund, to remain available until expended - 
          (A) $60,000,000 for fiscal year 1995;
          (B) $104,000,000 for fiscal year 1996;
          (C) $107,000,000 for fiscal year 1997; and
          (D) $111,000,000 for fiscal year 1998;

      or such greater sums as may be necessary to carry out this
      subchapter.
      (2) Administrative expenses
        (A) In general
          Of amounts authorized to be appropriated to the Fund pursuant
        to this section, not more than $5,550,000 may be used by the
        Fund in each fiscal year to pay the administrative costs and
        expenses of the Fund. Costs associated with the training
        program established under section 4708 of this title and the
        technical assistance program established under section 4707 of
        this title shall not be considered to be administrative
        expenses for purposes of this paragraph.
        (B) Calculations
          The amounts referred to in paragraphs (3) and (4) shall be
        calculated after subtracting the amount referred to in
        subparagraph (A) of this paragraph from the total amount
        appropriated to the Fund in accordance with paragraph (1) in
        any fiscal year.
      (3) Capitalization assistance
        Not more than 5 percent of the amounts authorized to be
      appropriated under paragraph (1) may be used as provided in
      section 4712 of this title.
      (4) Availability for funding section 4713 of this title
        33 1/3  percent of the amounts appropriated to the Fund for any
      fiscal year pursuant to the authorization in paragraph (1) shall
      be available for use in carrying out section 4713 of this title.
      (5) Support of community development financial institutions
        The Administrator shall allocate funds authorized under this
      section, to the maximum extent practicable, for the support of
      community development financial institutions.
    (b) Community Development Credit Union Revolving Loan Fund
      There are authorized to be appropriated for the purposes of the
    Community Development Credit Union Revolving Loan Fund - 
        (1) $4,000,000 for fiscal year 1995;
        (2) $2,000,000 for fiscal year 1996;
        (3) $2,000,000 for fiscal year 1997; and
        (4) $2,000,000 for fiscal year 1998.
    (c) Budgetary treatment
      Amounts authorized to be appropriated under this section shall be
    subject to discretionary spending caps, as provided in section 665
    (!1) of title 2, and therefore shall reduce by an equal amount
    funds made available for other discretionary spending programs.

-SOURCE-
    (Pub. L. 103-325, title I, Sec. 121, Sept. 23, 1994, 108 Stat.
    2189.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 665 of title 2, referred to in subsec. (c), was repealed
    by Pub. L. 105-33, title X, Sec. 10118(a), Aug. 5, 1997, 111 Stat.
    695.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    12 USC SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT    01/03/2007 

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-
            SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT        

-End-

-CITE-
    12 USC Sec. 4741                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-
    Sec. 4741. Findings and purposes

-STATUTE-
    (a) Findings
      The Congress finds that - 
        (1) small business concerns are a vital part of the economy,
      accounting for the majority of new jobs, new products, and new
      services created in the United States;
        (2) adequate access to debt capital is a critical component for
      small business development, productivity, expansion, and success
      in the United States;
        (3) commercial banks are the most important suppliers of debt
      capital to small business concerns in the United States;
        (4) commercial banks and other depository institutions have
      various incentives to minimize their risk in financing small
      business concerns;
        (5) as a result of such incentives, many small business
      concerns with economically sound financing needs are unable to
      obtain access to needed debt capital;
        (6) the small business capital access programs implemented by
      certain States are a flexible and efficient tool to assist
      financial institutions in providing access to needed debt capital
      for many small business concerns in a manner consistent with
      safety and soundness regulations;
        (7) a small business capital access program would complement
      other programs which assist small business concerns in obtaining
      access to capital; and
        (8) Federal policy can stimulate and accelerate efforts by
      States to implement small business capital access programs by
      providing an incentive to States, while leaving the
      administration of such programs to each participating State.
    (b) Purposes
      By encouraging States to implement administratively efficient
    capital access programs that encourage commercial banks and other
    depository institutions to provide access to debt capital for a
    broad portfolio of small business concerns, and thereby promote a
    more efficient and effective debt market, the purposes of this
    subchapter are - 
        (1) to promote economic opportunity and growth;
        (2) to create jobs;
        (3) to promote economic efficiency;
        (4) to enhance productivity; and
        (5) to spur innovation.

-SOURCE-
    (Pub. L. 103-325, title II, Sec. 251, Sept. 23, 1994, 108 Stat.
    2203.)

-MISC1-
                              EFFECTIVE DATE                          
      Section 261 of title II of Pub. L. 103-325 provided that: "This
    subtitle [subtitle B (Secs. 251-261) of title II of Pub. L. 103-
    325, enacting this subchapter] shall become effective on January
    6, 1996."

-End-

-CITE-
    12 USC Sec. 4742                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-
    Sec. 4742. Definitions

-STATUTE-
      For purposes of this subchapter - 
        (1) the term "Fund" means the Community Development Financial
      Institutions Fund established under section 4703 of this title;
        (2) the term "appropriate Federal banking agency" - 
          (A) has the same meaning as in section 1813 of this title;
        and
          (B) includes the National Credit Union Administration Board
        in the case of any credit union the deposits of which are
        insured in accordance with the Federal Credit Union Act [12
        U.S.C. 1751 et seq.];

        (3) the term "early loan" means a loan enrolled at a time when
      the aggregate covered amount of loans previously enrolled under
      the Program by a particular participating financial institution
      is less than $5,000,000;
        (4) the term "enrolled loan" means a loan made by a
      participating financial institution that is enrolled by a
      participating State in accordance with this subchapter;
        (5) the term "financial institution" means any federally
      chartered or State-chartered commercial bank, savings
      association, savings bank, or credit union;
        (6) the term "participating financial institution" means any
      financial institution that has entered into a participation
      agreement with a participating State in accordance with section
      4744 of this title;
        (7) the term "participating State" means any State that has
      been approved for participation in the Program in accordance with
      section 4743 of this title;
        (8) the term "passive real estate ownership" means ownership of
      real estate for the purpose of deriving income from speculation,
      trade, or rental, except that such term shall not include - 
          (A) the ownership of that portion of real estate being used
        or intended to be used for the operation of the business of the
        owner of the real estate (other than the business of passive
        ownership of real estate); or
          (B) the ownership of real estate for the purpose of
        construction or renovation, until the completion of the
        construction or renovation phase;

        (9) the term "Program" means the Small Business Capital
      Enhancement Program established under this subchapter;
        (10) the term "reserve fund" means a fund, established by a
      participating State, earmarked for a particular participating
      financial institution, for the purposes of - 
          (A) depositing all required premium charges paid by the
        participating financial institution and by each borrower
        receiving a loan under the Program from a participating
        financial institution;
          (B) depositing contributions made by the participating State;
        and
          (C) covering losses on enrolled loans by disbursing
        accumulated funds; and

        (11) the term "State" means - 
          (A) a State of the United States;
          (B) the District of Columbia;
          (C) any political subdivision of a State of the United
        States, which subdivision has a population in excess of the
        population of the least populated State of the United States;
        and
          (D) any other political subdivision of a State of the United
        States that the Fund determines has the capacity to participate
        in the program.(!1)

-SOURCE-
    (Pub. L. 103-325, title II, Sec. 252, Sept. 23, 1994, 108 Stat.
    2204.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Credit Union Act, referred to in par. (2)(B), is act
    June 26, 1934, ch. 750, 48 Stat. 1216, as amended, which is
    classified generally to chapter 14 (Sec. 1751 et seq.) of this
    title. For complete classification of this Act to the Code, see
    section 1751 of this title and Tables.

-FOOTNOTE-               

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

-End-

-CITE-
    12 USC Sec. 4743                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-
    Sec. 4743. Approving States for participation

-STATUTE-
    (a) Application
      Any State may apply to the Fund for approval to be a
    participating State under the Program and to be eligible for
    reimbursement by the Fund pursuant to section 4747 of this title.
    (b) Approval criteria
      The Fund shall approve a State to be a participating State, if - 
        (1) a specific department or agency of the State has been
      designated to implement the Program;
        (2) all legal actions necessary to enable such designated
      department or agency to implement the Program have been
      accomplished;
        (3) funds in the amount of at least $1 for every 2 people
      residing in the State (as of the last decennial census for which
      data have been released) are available and have been legally
      committed to contributions by the State to reserve funds, with
      such funds being available without time limit and without
      requiring additional legal action, except that such requirements
      shall not be construed to limit the authority of the State to
      take action at a later time that results in the termination of
      its obligation to enroll loans and make contributions to reserve
      funds;
        (4) the State has prescribed a form of participation agreement
      to be entered into between it and each participating financial
      institution that is consistent with the requirements and purposes
      of this subchapter; and
        (5) the State and the Fund have executed a reimbursement
      agreement that conforms to the requirements of this subchapter.
    (c) Existing State programs
      (1) In general
        A State that is not a participating State, but that has its own
      capital access program providing portfolio insurance for business
      loans (based on a separate loss reserve fund for each financial
      institution), may apply at any time to the Fund to be approved to
      be a participating State. The Fund shall approve such State to be
      a participating State, and to be eligible for reimbursements by
      the Fund pursuant to section 4747 of this title, if the State - 
          (A) satisfies the requirements of subsections (a) and (b) of
        this section; and
          (B) certifies that each affected financial institution has
        satisfied the requirements of section 4744 of this title.
      (2) Applicable terms of participation
        (A) Status of institutions
          If a State is approved for participation under paragraph (1),
        each financial institution with a participation agreement in
        effect with the participating State shall immediately be
        considered a participating financial institution.
        Reimbursements may be made under section 4747 (!1) of this
        title in connection with all contributions made to the reserve
        fund by the State in connection with lending that occurs on or
        after the date on which the Fund approves the State for
        participation.

        (B) Effective date of participation
          If an amended participation agreement that conforms with
        section 4745 of this title is required in order to secure
        participation approval by the Fund, contributions subject to
        reimbursement under section 4747 of this title shall include
        only those contributions made to a reserve fund with respect to
        loans enrolled on or after the date that an amended
        participation agreement between the participating State and the
        participating financial institution becomes effective.
        (C) Use of accumulated reserve funds
          A State that is approved for participation in accordance with
        this subsection may continue to implement the program (!2)
        utilizing the reserve funds accumulated under the State
        program.

    (d) Prior appropriations requirement
      The Fund shall not approve a State for participation in the
    Program until at least $50,000,000 has been appropriated to the
    Fund (subject to an appropriations Act), without fiscal year
    limitation, for the purpose of making reimbursements pursuant to
    section 4747 of this title and otherwise carrying out this
    subchapter.
    (e) Amendments to agreements
      If a State that has been approved to be a participating State
    wishes to amend its form of participation agreement and continue to
    be a participating State, such State shall submit such amendment
    for review by the Fund in accordance with subsection (b)(4) of this
    section. Any such amendment shall become effective only after it
    has been approved by the Fund.

-SOURCE-
    (Pub. L. 103-325, title II, Sec. 253, Sept. 23, 1994, 108 Stat.
    2205.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 4747 of this title, referred to in subsec. (c)(2)(A), was
    in the original "section 237" and was translated as reading
    "section 257" meaning section 257 of Pub. L. 103-325, to reflect
    the probable intent of Congress. Pub. L. 103-325 does not contain a
    section 237.

-FOOTNOTE-
    (!1) See References in Text note below.

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

-End-

-CITE-
    12 USC Sec. 4744                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-
    Sec. 4744. Participation agreements

-STATUTE-
    (a) In general
      A participating State may enter into a participation agreement
    with any financial institution determined by the participating
    State, after consultation with the appropriate Federal banking
    agency, to have sufficient commercial lending experience and
    financial and managerial capacity to participate in the Program.
    The determination by the State shall not be reviewable by the Fund.
    (b) Participating financial institutions
      Upon entering into the participation agreement with the
    participating State, the financial institution shall become a
    participating financial institution eligible to enroll loans under
    the Program.

-SOURCE-
    (Pub. L. 103-325, title II, Sec. 254, Sept. 23, 1994, 108 Stat.
    2207.)

-End-

-CITE-
    12 USC Sec. 4745                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-
    Sec. 4745. Terms of participation agreements

-STATUTE-
    (a) In general
      The participation agreement to be entered into by a participating
    State and a participating financial institution shall include all
    provisions required by this section, and shall not include any
    provisions inconsistent with the provisions of this section.
    (b) Establishment of separate reserve funds
      A separate reserve fund shall be established by the participating
    State for each participating financial institution. All funds
    credited to a reserve fund shall be the exclusive property of the
    participating State. Each reserve fund shall be an administrative
    account for the purposes of - 
        (1) receiving all required premium charges to be paid by the
      borrower and participating financial institution and
      contributions by the participating State; and
        (2) disbursing funds, either to cover losses sustained by the
      participating financial institution in connection with loans made
      under the Program, or as contemplated by subsections (d) and (r)
      of this section.
    (c) Investment authority
      Subject to applicable State law, the participating State may
    invest, or cause to be invested, funds held in a reserve fund by
    establishing a deposit account at the participating financial
    institution in the name of the participating State. In the event
    that funds in the reserve fund are not deposited in such an
    account, such funds shall be invested in a form that the
    participating State determines is safe and liquid.
    (d) Earned income and interest
      Interest or income earned on the funds credited to a reserve fund
    shall be deemed to be part of the reserve fund, except that a
    participating State may, as further specified in the participation
    agreement, provide authority for the participating State to
    withdraw some or all of such interest or income earned.
    (e) Loan terms and conditions
      (1) In general
        A loan to be filed for enrollment under the Program may be made
      with such interest rate, fees, and other terms and conditions as
      agreed upon by the participating financial institution and the
      borrower, consistent with applicable law.
      (2) Lines of credit
        If a loan to be filed for enrollment is in the form of a line
      of credit, the amount of the loan shall be considered to be the
      maximum amount that can be drawn by the borrower against the line
      of credit.
    (f) Enrollment process
      (1) Filing
        (A) In general
          A participating financial institution shall file each loan
        made under the Program for enrollment by completing and
        submitting to the participating State a form prescribed by the
        participating State.
        (B) Form
          The form referred to in subparagraph (A) shall include a
        representation by the participating financial institution that
        it has complied with the participation agreement in enrolling
        the loan with the State.
        (C) Premium charges
          Accompanying the completed form shall be the nonrefundable
        premium charges paid by the borrower and the participating
        financial institution, or evidence that such premium charges
        have been deposited into the deposit account containing the
        reserve fund, if applicable.
        (D) Submission
          The participation agreement shall require that the items
        required by this subsection shall be submitted to the
        participating State by the participating financial institutions
        not later than 10 calendar days after a loan is made.
      (2) Enrollment by State
        Upon receipt by the participating State of the filing submitted
      in accordance with paragraph (1), the participating State shall
      promptly enroll the loan and make a matching contribution to the
      reserve fund in accordance with subsection (j) of this section,
      unless the information submitted indicates that the participating
      financial institution has not complied with the participation
      agreement in enrolling the loan.
    (g) Coverage amount
      In filing a loan for enrollment under the Program, the
    participating financial institution may specify an amount to be
    covered under the Program that is less than the full amount of the
    loan.
    (h) Premium charges
      (1) Minimum and maximum amounts
        The premium charges payable to the reserve fund by the borrower
      and the participating financial institution shall be prescribed
      by the participating financial institution, within minimum and
      maximum limits set forth in the participation agreement. The
      participation agreement shall establish minimum and maximum
      limits whereby the sum of the premium charges paid in connection
      with a loan by the borrower and the participating financial
      institution is not less than 3 percent nor more than 7 percent of
      the amount of the loan covered under the Program.
      (2) Allocation of premium charges
        The participation agreement shall specify terms for allocating
      premium charges between the borrower and the participating
      financial institution. However, if the participating financial
      institution is required to pay any of the premium charges, the
      participation agreement shall authorize the participating
      financial institution to recover from the borrower the cost of
      the payment of the participating financial institution, in any
      manner on which the participating financial institution and the
      borrower agree.
    (i) Restrictions
      (1) Actions prohibited
        Except as provided in subsection (h) of this section and
      paragraph (2) of this subsection, the participating State may not
      - 
          (A) impose any restrictions or requirements, relating to the
        interest rate, fees, collateral, or other business terms and
        conditions of the loan; or
          (B) condition enrollment of a loan in the Program on the
        review by the State of the risk or creditworthiness of a loan.
      (2) Effect on other law
        Nothing in this subchapter shall affect the applicability of
      any other law to the conduct by a participating financial
      institution of its business.
    (j) State contributions
      In enrolling a loan under the Program, the participating State
    shall contribute to the reserve fund an amount, as provided for in
    the participation agreement, which shall not be less than the sum
    of the amount of premium charges paid by the borrower and the
    participating financial institution.
    (k) Submission of claims
      (1) Filing
        If a participating financial institution charges off all or
      part of an enrolled loan, such participating financial
      institution may file a claim for reimbursement with the
      participating State by submitting a form that - 
          (A) includes the representation by the participating
        financial institution that it is filing the claim in accordance
        with the terms of the applicable participation agreement; and
          (B) contains such other information as may be required by the
        participating State.
      (2) Timing
        Any claim filed under paragraph (1) shall be filed
      contemporaneously with the action of the participating financial
      institution to charge off all or part of an enrolled loan. The
      participating financial institution shall determine when and how
      much to charge off on an enrolled loan, in a manner consistent
      with its usual method for making such determinations on business
      loans that are not enrolled loans under this subchapter.
    (l) Elements of claims
      A claim filed by a participating financial institution may
    include the amount of principal charged off, not to exceed the
    covered amount of the loan. Such claim may also include accrued
    interest and out-of-pocket expenses, if and to the extent provided
    for under the participation agreement.
    (m) Payment of claims
      (1) In general
        Except as provided in subsection (n) of this section and
      paragraph (2) of this subsection, upon receipt of a claim filed
      in accordance with this section and the participation agreement,
      the participating State shall promptly pay to the participating
      financial institution, from funds in the reserve fund, the full
      amount of the claim as submitted.
      (2) Insufficient reserve funds
        If there are insufficient funds in the reserve fund to cover
      the entire amount of a claim of a participating financial
      institution, the participating State shall pay to the
      participating financial institution an amount equal to the
      current balance in the reserve fund. If the enrolled loan for
      which the claim has been filed - 
          (A) is not an early loan, such payment shall be deemed fully
        to satisfy the claim, and the participating financial
        institution shall have no other or further right to receive any
        amount from the reserve fund with respect to such claim; or
          (B) is an early loan, such payment shall not be deemed fully
        to satisfy the claim of the participating financial
        institution, and at such time as the remaining balance of the
        claim does not exceed 75 percent of the balance in the reserve
        fund, the participating State shall, upon the request of the
        participating financial institution, pay any remaining amount
        of the claim.
    (n) Denial of claims
      A participating State may deny a claim if a representation or
    warranty made by the participating financial institution to the
    participating State at the time that the loan was filed for
    enrollment or at the time that the claim was submitted was known by
    the participating financial institution to be false.
    (o) Subsequent recovery of claim amount
      If, subsequent to payment of a claim by the participating State,
    a participating financial institution recovers from a borrower any
    amount for which payment of the claim was made, the participating
    financial institution shall promptly pay to the participating State
    for deposit into the reserve fund the amount recovered, less any
    expenses incurred by the institution in collection of such amount.
    (p) Participation agreement terms
      (1) In general
        In connection with the filing of a loan for enrollment in the
      Program, the participation agreement - 
          (A) shall require the participating financial institution to
        obtain an assurance from each borrower that - 
            (i) the proceeds of the loan will be used for a business
          purpose;
            (ii) the loan will not be used to finance passive real
          estate ownership; and
            (iii) the borrower is not - 
              (I) an executive officer, director, or principal
            shareholder of the participating financial institution;
              (II) a member of the immediate family of an executive
            officer, director, or principal shareholder of the
            participating financial institution; or
              (III) a related interest of any such executive officer,
            director, principal shareholder, or member of the immediate
            family;

          (B) shall require the participating financial institution to
        provide assurances to the participating State that the loan has
        not been made in order to place under the protection of the
        Program prior debt that is not covered under the Program and
        that is or was owed by the borrower to the participating
        financial institution or to an affiliate of the participating
        financial institution;
          (C) may provide that if - 
            (i) a participating financial institution makes a loan to a
          borrower that is a refinancing of a loan previously made to
          the borrower by the participating financial institution or an
          affiliate of the participating financial institution;
            (ii) such prior loan was not enrolled in the Program; and
            (iii) additional or new financing is extended by the
          participating financial institution as part of the
          refinancing,

        the participating financial institution may file the loan for
        enrollment, with the amount to be covered under the Program not
        to exceed the amount of any additional or new financing; and
          (D) may include additional restrictions on the eligibility of
        loans or borrowers that are not inconsistent with the
        provisions and purposes of this subchapter.
      (2) Definitions
        For purposes of this subsection, the terms "executive officer",
      "director", "principal shareholder", "immediate family", and
      "related interest" refer to the same relationship to a
      participating financial institution as the relationship described
      in part 215 of title 12 of the Code of Federal Regulations, or
      any successor to such part.
    (q) Termination clause
      In each participation agreement, the participating State shall
    reserve for itself the ability to terminate its obligation to
    enroll loans under the Program. Any such termination shall be
    prospective only, and shall not apply to amounts of loans enrolled
    under the Program prior to such termination.
    (r) Allowable withdrawals from fund
      The participation agreement may provide that, if, for any
    consecutive period of not less than 24 months, the aggregate
    outstanding balance of all enrolled loans for a participating
    financial institution is continually less than the outstanding
    balance in the reserve fund for that participating financial
    institution, the participating State, in its discretion, may
    withdraw an amount from the reserve fund to bring the balance in
    the reserve fund down to the outstanding balance of all such
    enrolled loans.
    (s) Grandfathered provision
      (1) Special treatment of premium charges
        Notwithstanding subsection (b) or (d) of this section, the
      participation agreement, if explicitly authorized by a statute
      enacted by the State before September 23, 1994, may allow a
      participating financial institution to treat the premium charges
      paid by the participating financial institution and the borrower
      into the reserve fund, and interest or income earned on funds in
      the reserve fund that are deemed to be attributable to such
      premium charges, as assets of the participating financial
      institution for accounting purposes, subject to withdrawal by the
      participating financial institution only - 
          (A) for the payment of claims approved by the participating
        State in accordance with this section; and
          (B) upon the participating financial institution's withdrawal
        from authority to make new loans under the Program.
      (2) Payment of post-withdrawal claims
        After any withdrawal of assets from the reserve fund pursuant
      to paragraph (1)(B), any future claims filed by the participating
      financial institution on loans remaining in its capital access
      program portfolio shall only be paid from funds remaining in the
      reserve fund to the extent that, in the aggregate, such claims
      exceed the sum of the amount of such withdrawn assets, and
      interest on that amount, imputed at the same rate as income would
      have accrued had the amount not been withdrawn.
      (3) Conditions for terminating special authority
        If the Fund determines that the inclusion in a participation
      agreement of the provisions authorized by this subsection is
      resulting in the enrollment of loans under the Program that are
      likely to have been made without assistance provided under this
      subchapter, the Fund may notify the participating State that
      henceforth, the Fund will only make reimbursements to the State
      under section 4747 of this title with respect to a loan if the
      participation agreement between the participating State and each
      participating financial institution has been amended to conform
      with this section, without exercise of the special authority
      granted by this subsection.

-SOURCE-
    (Pub. L. 103-325, title II, Sec. 255, Sept. 23, 1994, 108 Stat.
    2207.)

-End-

-CITE-
    12 USC Sec. 4746                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-
    Sec. 4746. Reports

-STATUTE-
    (a) Reserve funds report
      On or before the last day of each calendar quarter, a
    participating State shall submit to the Fund a report of
    contributions to reserve funds made by the participating State
    during the previous calendar quarter. If the participating State
    has made contributions to one or more reserve funds during the
    previous quarter, the report shall - 
        (1) indicate the total amount of such contributions;
        (2) indicate the amount of contributions which is subject to
      reimbursement, which shall be equal to the total amount of
      contributions, unless one of the limitations contained in section
      4747 of this title is applicable;
        (3) if one of the limitations in section 4747 of this title is
      applicable, provide documentation of the applicability of such
      limitation for each loan for which the limitation applies; and
        (4) include a certification by the participating State that - 
          (A) the information provided in accordance with paragraphs
        (1), (2), and (3) is accurate;
          (B) funds in an amount meeting the minimum requirements of
        section 4743(b)(3) of this title continue to be available and
        legally committed to contributions by the State to reserve
        funds, less any amount that has been contributed by the State
        to reserve funds subsequent to the State being approved for
        participation in the Program;
          (C) there has been no unapproved amendment to any
        participation agreement or the form of participation
        agreements; and
          (D) the participating State is otherwise implementing the
        Program in accordance with this subchapter and regulations
        issued pursuant to section 4749 of this title.
    (b) Annual data
      Not later than March 31 of each year, each participating State
    shall submit to the Fund annual data indicating the number of
    borrowers financed under the Program, the total amount of covered
    loans, and breakdowns by industry type, loan size, annual sales,
    and number of employees of the borrowers financed.
    (c) Form
      The reports and data filed pursuant to subsections (a) and (b) of
    this section shall be in such form as the Fund may require.

-SOURCE-
    (Pub. L. 103-325, title II, Sec. 256, Sept. 23, 1994, 108 Stat.
    2212.)

-End-

-CITE-
    12 USC Sec. 4747                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-
    Sec. 4747. Reimbursement by Fund

-STATUTE-
    (a) Reimbursements
      Not later than 30 calendar days after receiving a report filed in
    compliance with section 4746 of this title, the Fund shall
    reimburse the participating State in an amount equal to 50 percent
    of the amount of contributions by the participating State to the
    reserve funds that are subject to reimbursement by the Fund
    pursuant to section 4746 of this title and this section. The Fund
    shall reimburse participating States, as it receives reports
    pursuant to section 4746(a) of this title, until available funds
    are expended.
    (b) Size of assisted borrower
      The Fund shall not provide any reimbursement to a participating
    State with respect to an enrolled loan made to a borrower that has
    500 or more employees at the time that the loan is enrolled in the
    Program.
    (c) Three-year maximum
      The amount of reimbursement to be provided by the Fund to a
    participating State over any 3-year period in connection with loans
    made to any single borrower or any group of borrowers among which a
    common enterprise exists shall not exceed $75,000. For purposes of
    this subsection, "common enterprise" shall have the same meaning as
    in part 32 of title 12 of the Code of Federal Regulations, or any
    successor to that part.
    (d) Loans totaling less than $2,000,000
      In connection with a loan in which the covered amount of the loan
    plus the covered amount of all previous loans enrolled by a
    participating financial institution does not exceed $2,000,000, the
    amount of reimbursement by the Fund to the participating State
    shall not exceed the lesser of - 
        (1) 75 percent of the sum of the premium charges paid to the
      reserve fund by the borrower and the participating financial
      institution; or
        (2) 5.25 percent of the covered amount of the loan.
    (e) Loans totaling more than $2,000,000
      In connection with a loan in which the sum of the covered amounts
    of all previous loans enrolled by the participating financial
    institution in the Program equals or exceeds $2,000,000, the amount
    of reimbursement to be provided by the Fund to the participating
    State shall not exceed the lesser of - 
        (1) 50 percent of the sum of the premium charges paid by the
      borrower and the participating financial institution; or
        (2) 3.5 percent of the covered amount of the loan.
    (f) Other amounts
      In connection with the enrollment of a loan that will cause the
    aggregate covered amount of all enrolled loans to exceed
    $2,000,000, the amount of reimbursement by the Fund to the
    participating State shall be determined - 
        (1) by applying subsection (d) of this section to the portion
      of the loan, which when added to the aggregate covered amount of
      all previously enrolled loans equals $2,000,000; and
        (2) by applying subsection (e) of this section to the balance
      of the loan.

-SOURCE-
    (Pub. L. 103-325, title II, Sec. 257, Sept. 23, 1994, 108 Stat.
    2212.)

-End-

-CITE-
    12 USC Sec. 4748                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-
    Sec. 4748. Reimbursement to Fund

-STATUTE-
    (a) In general
      If a participating State withdraws funds from a reserve fund
    pursuant to terms of the participation agreement permitted by
    subsection (d) or (r) of section 4745 of this title, such
    participating State shall, not later than 15 calendar days after
    such withdrawal, submit to the Fund an amount computed by
    multiplying the amount withdrawn by the appropriate factor, as
    determined under subsection (b) of this section.
    (b) Factor
      The appropriate factor shall be obtained by dividing the total
    amount of contributions that have been made by the participating
    State to all reserve funds which were subject to reimbursement - 
        (1) by 2; and
        (2) by the total amount of contributions made by the
      participating State to all reserve funds, including if
      applicable, contributions that have been made by the State prior
      to becoming a participating State if the State continued its own
      capital access program in accordance with section 4743(b) of this
      title.
    (c) Use of reimbursements
      The Fund may use funds reimbursed pursuant to this section to
    make reimbursements under section 4747 of this title.

-SOURCE-
    (Pub. L. 103-325, title II, Sec. 258, Sept. 23, 1994, 108 Stat.
    2213.)

-End-

-CITE-
    12 USC Sec. 4749                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-
    Sec. 4749. Regulations

-STATUTE-
      The Fund shall promulgate appropriate regulations to implement
    this subchapter.

-SOURCE-
    (Pub. L. 103-325, title II, Sec. 259, Sept. 23, 1994, 108 Stat.
    2214.)

-End-

-CITE-
    12 USC Sec. 4750                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 47 - COMMUNITY DEVELOPMENT BANKING
    SUBCHAPTER II - SMALL BUSINESS CAPITAL ENHANCEMENT

-HEAD-
    Sec. 4750. Authorization of appropriations

-STATUTE-
    (a) Amount
      There are authorized to be appropriated to the Fund $50,000,000
    to carry out this subchapter.
    (b) Budgetary treatment
      The amount authorized to be appropriated under subsection (a) of
    this section shall be subject to discretionary spending caps, as
    provided in section 665 (!1) of title 2, and therefore shall reduce
    by an equal amount funds made available for other discretionary
    spending programs.

-SOURCE-
    (Pub. L. 103-325, title II, Sec. 260, Sept. 23, 1994, 108 Stat.
    2214.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 665 of title 2, referred to in subsec. (b), was repealed
    by Pub. L. 105-33, title X, Sec. 10118(a), Aug. 5, 1997, 111 Stat.
    695.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-