```

[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1275 Reported in Senate (RS)]

                                                       Calendar No. 259

103d CONGRESS

  1st Session

                                S. 1275

                          [Report No. 103-169]

_______________________________________________________________________

                                 A BILL

  To facilitate the establishment of community development financial 
                             institutions.

_______________________________________________________________________

             October 28 (legislative day, October 13), 1993

        Reported with an amendment and an amendment to the title

                                                       Calendar No. 259
103d CONGRESS
  1st Session
                                S. 1275

                          [Report No. 103-169]

  To facilitate the establishment of community development financial 
                             institutions.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                July 21 (legislative day, June 30), 1993

Mr. Riegle (for himself, Mr. Sarbanes, Mr. Dodd, Mr. Kerry, Mrs. Boxer, 
   Mr. Campbell, Ms. Moseley-Braun, Mr. Bradley, and Mrs. Feinstein) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

             October 28 (legislative day, October 13), 1993

Reported by Mr. Riegle, with an amendment and an amendment to the title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
  To facilitate the establishment of community development financial 
                             institutions.

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

-S-E-C-T-I-O-N -1-. -S-H-O-R-T -T-I-T-L-E-.

    -T-h-i-s -A-c-t -m-a-y -b-e -c-i-t-e-d -a-s -t-h-e 
-`-`-C-o-m-m-u-n-i-t-y -D-e-v-e-l-o-p-m-e-n-t -B-a-n-k-i-n-g -a-n-d 
-F-i-n-a-n-c-i-a-l -I-n-s-t-i-t-u-t-i-o-n-s -A-c-t -o-f -1-9-9-3-'-'-.

-S-E-C-. -2-. -F-I-N-D-I-N-G-S -A-N-D -P-U-R-P-O-S-E-.

    -(-a-) -F-i-n-d-i-n-g-s-.----T-h-e -C-o-n-g-r-e-s-s -f-i-n-d-s 
-t-h-a-t---
            -(-1-) -m-a-n-y -o-f -t-h-e -N-a-t-i-o-n-'-s -u-r-b-a-n 
        -a-n-d -r-u-r-a-l -c-o-m-m-u-n-i-t-i-e-s -a-n-d -I-n-d-i-a-n 
        -r-e-s-e-r-v-a-t-i-o-n-s -f-a-c-e -c-r-i-t-i-c-a-l -s-o-c-i-a-l 
        -a-n-d -e-c-o-n-o-m-i-c -p-r-o-b-l-e-m-s -a-r-i-s-i-n-g -i-n 
        -p-a-r-t -f-r-o-m -t-h-e -l-a-c-k -o-f -e-c-o-n-o-m-i-c 
        -g-r-o-w-t-h-, -p-e-o-p-l-e -l-i-v-i-n-g -i-n -p-o-v-e-r-t-y-, 
        -a-n-d -t-h-e -l-a-c-k -o-f -e-m-p-l-o-y-m-e-n-t -a-n-d 
        -o-t-h-e-r -o-p-p-o-r-t-u-n-i-t-i-e-s-;
            -(-2-) -t-h-e -r-e-s-t-o-r-a-t-i-o-n -a-n-d 
        -m-a-i-n-t-e-n-a-n-c-e -o-f -t-h-e -e-c-o-n-o-m-i-e-s -o-f 
        -t-h-e-s-e -c-o-m-m-u-n-i-t-i-e-s -w-i-l-l -r-e-q-u-i-r-e 
        -c-o-o-r-d-i-n-a-t-e-d -d-e-v-e-l-o-p-m-e-n-t 
        -s-t-r-a-t-e-g-i-e-s-, -i-n-t-e-n-s-i-v-e -s-u-p-p-o-r-t-i-v-e 
        -s-e-r-v-i-c-e-s-, -a-n-d -i-n-c-r-e-a-s-e-d -a-c-c-e-s-s -t-o 
        -c-a-p-i-t-a-l -a-n-d -c-r-e-d-i-t -f-o-r 
        -d-e-v-e-l-o-p-m-e-n-t -a-c-t-i-v-i-t-i-e-s-, 
        -i-n-c-l-u-d-i-n-g -i-n-v-e-s-t-m-e-n-t -i-n 
        -b-u-s-i-n-e-s-s-e-s-, -h-o-u-s-i-n-g-, -c-o-m-m-e-r-c-i-a-l 
        -r-e-a-l -e-s-t-a-t-e-, -h-u-m-a-n -d-e-v-e-l-o-p-m-e-n-t-, 
        -a-n-d -o-t-h-e-r -a-c-t-i-v-i-t-i-e-s -t-h-a-t -p-r-o-m-o-t-e 
        -t-h-e -l-o-n-g---t-e-r-m -e-c-o-n-o-m-i-c -a-n-d -s-o-c-i-a-l 
        -v-i-a-b-i-l-i-t-y -o-f -t-h-e -c-o-m-m-u-n-i-t-y-;
            -(-3-) -i-n -m-a-n-y -u-r-b-a-n -a-n-d -r-u-r-a-l 
        -c-o-m-m-u-n-i-t-i-e-s-, -l-o-w-- -a-n-d -m-o-d-e-r-a-t-e--
        -i-n-c-o-m-e -n-e-i-g-h-b-o-r-h-o-o-d-s-, -a-n-d -I-n-d-i-a-n 
        -r-e-s-e-r-v-a-t-i-o-n-s-, -t-h-e-r-e -i-s -a -s-h-o-r-t-a-g-e 
        -o-f -c-a-p-i-t-a-l -a-n-d -c-r-e-d-i-t -f-o-r -b-u-s-i-n-e-s-s 
        -a-n-d -a-f-f-o-r-d-a-b-l-e -h-o-u-s-i-n-g-;
            -(-4-) -a-c-c-e-s-s -t-o -c-a-p-i-t-a-l -a-n-d -c-r-e-d-i-t 
        -i-s -e-s-s-e-n-t-i-a-l -t-o -u-n-l-e-a-s-h -t-h-e 
        -u-n-t-a-p-p-e-d -e-n-t-r-e-p-r-e-n-e-u-r-i-a-l -e-n-e-r-g-y 
        -o-f -A-m-e-r-i-c-a-'-s -p-o-o-r-e-s-t -c-o-m-m-u-n-i-t-i-e-s 
        -a-n-d -t-o -e-m-p-o-w-e-r -i-n-d-i-v-i-d-u-a-l-s -a-n-d 
        -c-o-m-m-u-n-i-t-i-e-s -t-o -b-e-c-o-m-e -s-e-l-f--
        -s-u-f-f-i-c-i-e-n-t-; -a-n-d
            -(-5-) -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
        -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-s -h-a-v-e 
        -p-r-o-v-e-n -t-h-e-i-r -a-b-i-l-i-t-y -t-o -i-d-e-n-t-i-f-y 
        -a-n-d -r-e-s-p-o-n-d -t-o -c-o-m-m-u-n-i-t-y -n-e-e-d-s -f-o-r 
        -c-a-p-i-t-a-l-, -c-r-e-d-i-t-, -a-n-d -d-e-v-e-l-o-p-m-e-n-t 
        -s-e-r-v-i-c-e-s -i-n -t-h-e -a-b-s-e-n-c-e -o-f-, -o-r -a-s -a 
        -c-o-m-p-l-e-m-e-n-t -t-o-, -s-e-r-v-i-c-e-s -p-r-o-v-i-d-e-d 
        -b-y -o-t-h-e-r -l-e-n-d-e-r-s-.
    -(-b-) -P-u-r-p-o-s-e-.----T-h-e -p-u-r-p-o-s-e -o-f -t-h-i-s 
-A-c-t -i-s -t-o -c-r-e-a-t-e -a -C-o-m-m-u-n-i-t-y 
-D-e-v-e-l-o-p-m-e-n-t -B-a-n-k-i-n-g -a-n-d -F-i-n-a-n-c-i-a-l 
-I-n-s-t-i-t-u-t-i-o-n-s -F-u-n-d -t-h-a-t -w-i-l-l -s-u-p-p-o-r-t -a 
-p-r-o-g-r-a-m -o-f -i-n-v-e-s-t-m-e-n-t -i-n -a-n-d 
-a-s-s-i-s-t-a-n-c-e -t-o -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
-f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-s-. -T-h-e -C-o-m-m-u-n-i-t-y 
-D-e-v-e-l-o-p-m-e-n-t -B-a-n-k-i-n-g -a-n-d -F-i-n-a-n-c-i-a-l 
-I-n-s-t-i-t-u-t-i-o-n-s -F-u-n-d -w-i-l-l -p-r-o-v-i-d-e 
-f-i-n-a-n-c-i-a-l -a-n-d -t-e-c-h-n-i-c-a-l -a-s-s-i-s-t-a-n-c-e-, 
-i-n-c-l-u-d-i-n-g -t-r-a-i-n-i-n-g-, -t-o -c-o-m-m-u-n-i-t-y 
-d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-s-, 
-s-e-r-v-e -a-s -a -n-a-t-i-o-n-a-l -i-n-f-o-r-m-a-t-i-o-n 
-c-l-e-a-r-i-n-g-h-o-u-s-e-, -a-n-d -b-e -a-n 
-i-n-s-t-i-t-u-t-i-o-n-a-l -v-o-i-c-e -f-o-r -c-o-m-m-u-n-i-t-y 
-d-e-v-e-l-o-p-m-e-n-t-. -T-h-e -c-o-m-m-u-n-i-t-y 
-d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-s 
-t-h-a-t -t-h-e -C-o-m-m-u-n-i-t-y -D-e-v-e-l-o-p-m-e-n-t 
-B-a-n-k-i-n-g -a-n-d -F-i-n-a-n-c-i-a-l -I-n-s-t-i-t-u-t-i-o-n-s 
-F-u-n-d -s-u-p-p-o-r-t-s -w-i-l-l -p-r-o-v-i-d-e -c-a-p-i-t-a-l-, 
-c-r-e-d-i-t-, -a-n-d -d-e-v-e-l-o-p-m-e-n-t -s-e-r-v-i-c-e-s -t-o 
-t-a-r-g-e-t-e-d -i-n-v-e-s-t-m-e-n-t -a-r-e-a-s -o-r 
-p-o-p-u-l-a-t-i-o-n-s-, -a-n-d -w-i-l-l -p-r-o-m-o-t-e 
-e-c-o-n-o-m-i-c -r-e-v-i-t-a-l-i-z-a-t-i-o-n -a-n-d -c-o-m-m-u-n-i-t-y 
-d-e-v-e-l-o-p-m-e-n-t-.

-S-E-C-. -3-. -D-E-F-I-N-I-T-I-O-N-S-.

    -(-a-) -A-p-p-r-o-p-r-i-a-t-e -F-e-d-e-r-a-l -B-a-n-k-i-n-g 
-A-g-e-n-c-y-.----T-h-e -t-e-r-m -`-`-a-p-p-r-o-p-r-i-a-t-e 
-F-e-d-e-r-a-l -b-a-n-k-i-n-g -a-g-e-n-c-y-'-' -h-a-s -t-h-e -s-a-m-e 
-m-e-a-n-i-n-g -g-i-v-e-n -s-u-c-h -t-e-r-m -i-n -s-e-c-t-i-o-n 
-3-(-q-) -o-f -t-h-e -F-e-d-e-r-a-l -D-e-p-o-s-i-t -I-n-s-u-r-a-n-c-e 
-A-c-t -(-1-2 -U-.-S-.-C-. -1-8-1-3-(-q-)-)-.
    -(-b-) -C-o-m-m-u-n-i-t-y -D-e-v-e-l-o-p-m-e-n-t -F-i-n-a-n-c-i-a-l 
-I-n-s-t-i-t-u-t-i-o-n-.----T-h-e -t-e-r-m -`-`-c-o-m-m-u-n-i-t-y 
-d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-'-' 
-m-e-a-n-s -a-n-y -b-a-n-k-, -s-a-v-i-n-g-s -a-s-s-o-c-i-a-t-i-o-n-, 
-d-e-p-o-s-i-t-o-r-y -i-n-s-t-i-t-u-t-i-o-n -h-o-l-d-i-n-g 
-c-o-m-p-a-n-y-, -c-r-e-d-i-t -u-n-i-o-n-, -m-i-c-r-o--
-e-n-t-e-r-p-r-i-s-e -l-o-a-n -f-u-n-d-, -c-o-m-m-u-n-i-t-y 
-d-e-v-e-l-o-p-m-e-n-t -c-o-r-p-o-r-a-t-i-o-n-, -c-o-m-m-u-n-i-t-y 
-d-e-v-e-l-o-p-m-e-n-t -r-e-v-o-l-v-i-n-g -l-o-a-n -f-u-n-d-, 
-m-i-n-o-r-i-t-y---o-w-n-e-d -o-r -o-t-h-e-r -i-n-s-u-r-e-d 
-d-e-p-o-s-i-t-o-r-y -i-n-s-t-i-t-u-t-i-o-n-, -o-r -n-o-n--
-d-e-p-o-s-i-t-o-r-y -o-r-g-a-n-i-z-a-t-i-o-n -t-h-a-t---
            -(-1-) -h-a-s -a-s -i-t-s -p-r-i-m-a-r-y -m-i-s-s-i-o-n 
        -t-h-e -p-r-o-m-o-t-i-o-n -o-f -c-o-m-m-u-n-i-t-y 
        -d-e-v-e-l-o-p-m-e-n-t -t-h-r-o-u-g-h -t-h-e -p-r-o-v-i-s-i-o-n 
        -o-f -c-a-p-i-t-a-l-, -c-r-e-d-i-t-, -o-r 
        -d-e-v-e-l-o-p-m-e-n-t -s-e-r-v-i-c-e-s -i-n -i-t-s 
        -i-n-v-e-s-t-m-e-n-t -a-r-e-a-s -o-r -t-o -t-a-r-g-e-t-e-d 
        -p-o-p-u-l-a-t-i-o-n-s-; -a-n-d
            -(-2-) -e-n-c-o-u-r-a-g-e-s-, -t-h-r-o-u-g-h 
        -r-e-p-r-e-s-e-n-t-a-t-i-o-n -o-n -i-t-s -g-o-v-e-r-n-i-n-g 
        -b-o-a-r-d -o-r -o-t-h-e-r-w-i-s-e-, -t-h-e -i-n-p-u-t -o-f 
        -r-e-s-i-d-e-n-t-s -i-n -t-h-e -i-n-v-e-s-t-m-e-n-t -a-r-e-a 
        -o-r -t-h-e -t-a-r-g-e-t-e-d -p-o-p-u-l-a-t-i-o-n-s-.
-A -d-e-p-o-s-i-t-o-r-y -i-n-s-t-i-t-u-t-i-o-n -h-o-l-d-i-n-g 
-c-o-m-p-a-n-y -m-a-y -q-u-a-l-i-f-y -a-s -a -c-o-m-m-u-n-i-t-y 
-d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n 
-o-n-l-y -i-f -t-h-e -h-o-l-d-i-n-g -c-o-m-p-a-n-y -a-n-d -i-t-s 
-s-u-b-s-i-d-i-a-r-i-e-s -c-o-l-l-e-c-t-i-v-e-l-y -s-a-t-i-s-f-y -t-h-e 
-r-e-q-u-i-r-e-m-e-n-t-s -o-f -p-a-r-a-g-r-a-p-h-s -(-1-) -a-n-d 
-(-2-)-. -N-o -s-u-b-s-i-d-i-a-r-y -o-f -a -d-e-p-o-s-i-t-o-r-y 
-i-n-s-t-i-t-u-t-i-o-n -h-o-l-d-i-n-g -c-o-m-p-a-n-y -m-a-y 
-q-u-a-l-i-f-y -a-s -a -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
-f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n -i-f -t-h-e -h-o-l-d-i-n-g 
-c-o-m-p-a-n-y -a-n-d -i-t-s -s-u-b-s-i-d-i-a-r-i-e-s 
-c-o-l-l-e-c-t-i-v-e-l-y -d-o -n-o-t -m-e-e-t -t-h-e 
-r-e-q-u-i-r-e-m-e-n-t-s -o-f -p-a-r-a-g-r-a-p-h-s -(-1-) -a-n-d 
-(-2-)-. -T-h-e -t-e-r-m -`-`-c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
-f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-'-' -d-o-e-s -n-o-t 
-i-n-c-l-u-d-e -a-n -a-g-e-n-c-y -o-r -i-n-s-t-r-u-m-e-n-t-a-l-i-t-y 
-o-f -t-h-e -U-n-i-t-e-d -S-t-a-t-e-s -o-r -a-n -a-g-e-n-c-y -o-r 
-i-n-s-t-r-u-m-e-n-t-a-l-l-i-t-y -o-f -a-n-y -S-t-a-t-e -o-r 
-p-o-l-i-t-i-c-a-l -s-u-b-d-i-v-i-s-i-o-n -t-h-e-r-e-o-f-.
    -(-c-) -D-e-p-o-s-i-t-o-r-y -I-n-s-t-i-t-u-t-i-o-n -H-o-l-d-i-n-g 
-C-o-m-p-a-n-y-.----T-h-e -t-e-r-m -`-`-d-e-p-o-s-t-i-t-o-r-y 
-i-n-s-t-i-t-u-t-i-o-n -h-o-l-d-i-n-g -c-o-m-p-a-n-y-'-' -h-a-s -t-h-e 
-s-a-m-e -m-e-a-n-i-n-g -g-i-v-e-n -s-u-c-h -t-e-r-m -i-n 
-s-e-c-t-i-o-n -3-(-w-) -o-f -t-h-e -F-e-d-e-r-a-l -D-e-p-o-s-i-t 
-I-n-s-u-r-a-n-c-e -A-c-t -(-1-2 -U-.-S-.-C-. -1-8-1-3-(-w-)-)-.
    -(-d-) -D-e-v-e-l-o-p-m-e-n-t -S-e-r-v-i-c-e-s-.----T-h-e -t-e-r-m 
-`-`-d-e-v-e-l-o-p-m-e-n-t -s-e-r-v-i-c-e-s-'-' -m-e-a-n-s 
-a-c-t-i-v-i-t-i-e-s -c-o-n-d-u-c-t-e-d -b-y -a -c-o-m-m-u-n-i-t-y 
-d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n 
-t-h-a-t -p-r-o-m-o-t-e -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t -b-y 
-d-e-v-e-l-o-p-i-n-g-, -s-u-p-p-o-r-t-i-n-g-, -a-n-d 
-s-t-r-e-n-g-t-h-e-n-i-n-g -t-h-e -l-e-n-d-i-n-g-, 
-i-n-v-e-s-t-m-e-n-t-, -a-n-d -c-a-p-a-c-i-t-y---b-u-i-l-d-i-n-g 
-a-c-t-i-v-i-t-i-e-s -u-n-d-e-r-t-a-k-e-n -b-y 
-i-n-s-t-i-t-u-t-i-o-n-s-, -i-n-c-l-u-d-i-n-g-, -b-u-t -n-o-t 
-l-i-m-i-t-e-d -t-o---
            -(-1-) -b-u-s-i-n-e-s-s -p-l-a-n-n-i-n-g -s-e-r-v-i-c-e-s-;
            -(-2-) -f-i-n-a-n-c-i-a-l -a-n-d -c-r-e-d-i-t 
        -c-o-u-n-s-e-l-i-n-g -s-e-r-v-i-c-e-s-;
            -(-3-) -m-a-r-k-e-t-i-n-g -a-n-d -m-a-n-a-g-e-m-e-n-t 
        -a-s-s-i-s-t-a-n-c-e-; -a-n-d
            -(-4-) -a-d-m-i-n-i-s-t-r-a-t-i-v-e -a-c-t-i-v-i-t-i-e-s 
        -a-s-s-o-c-i-a-t-e-d -w-i-t-h -l-e-n-d-i-n-g -o-r 
        -i-n-v-e-s-t-m-e-n-t-.
    -(-e-) -I-n-s-u-r-e-d -C-o-m-m-u-n-i-t-y -D-e-v-e-l-o-p-m-e-n-t 
-F-i-n-a-n-c-i-a-l -I-n-s-t-i-t-u-t-i-o-n-.----T-h-e -t-e-r-m 
-`-`-i-n-s-u-r-e-d -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
-f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-'-' -m-e-a-n-s -a-n-y 
-c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
-i-n-s-t-i-t-u-t-i-o-n -t-h-a-t -i-s -a-n -i-n-s-u-r-e-d 
-d-e-p-o-s-i-t-o-r-y -i-n-s-t-i-t-u-t-i-o-n-. -T-h-e -t-e-r-m -a-l-s-o 
-i-n-c-l-u-d-e-s -a-n -i-n-s-u-r-e-d -c-r-e-d-i-t -u-n-i-o-n -w-h-i-c-h 
-h-a-s -b-e-e-n -d-e-s-i-g-n-a-t-e-d -a-s -l-o-w---i-n-c-o-m-e -b-y 
-t-h-e -N-a-t-i-o-n-a-l -C-r-e-d-i-t -U-n-i-o-n 
-A-d-m-i-n-i-s-t-r-a-t-i-o-n-.
    -(-f-) -I-n-s-u-r-e-d -C-r-e-d-i-t -U-n-i-o-n-.----T-h-e -t-e-r-m 
-`-`-i-n-s-u-r-e-d -c-r-e-d-i-t -u-n-i-o-n-'-' -h-a-s -t-h-e -s-a-m-e 
-m-e-a-n-i-n-g -g-i-v-e-n -s-u-c-h -t-e-r-m -i-n -s-e-c-t-i-o-n 
-1-0-1-(-7-) -o-f -t-h-e -F-e-d-e-r-a-l -C-r-e-d-i-t -U-n-i-o-n -A-c-t 
-(-1-2 -U-.-S-.-C-. -1-7-5-2-(-7-)-)-.
    -(-g-) -I-n-s-u-r-e-d -D-e-p-o-s-i-t-o-r-y 
-I-n-s-t-i-t-u-t-i-o-n-.----T-h-e -t-e-r-m -`-`-i-n-s-u-r-e-d 
-d-e-p-o-s-i-t-o-r-y -i-n-s-t-i-t-u-t-i-o-n-'-' -h-a-s -t-h-e -s-a-m-e 
-m-e-a-n-i-n-g -g-i-v-e-n -s-u-c-h -t-e-r-m -i-n -s-e-c-t-i-o-n 
-3-(-c-) -o-f -t-h-e -F-e-d-e-r-a-l -D-e-p-o-s-i-t -I-n-s-u-r-a-n-c-e 
-A-c-t -(-1-2 -U-.-S-.-C-. -1-8-1-3-(-c-)-)-.
    -(-h-) -I-n-v-e-s-t-m-e-n-t -A-r-e-a-.----T-h-e -t-e-r-m 
-`-`-i-n-v-e-s-t-m-e-n-t -a-r-e-a-'-' -m-e-a-n-s -a-n 
-i-d-e-n-t-i-f-i-a-b-l-e -c-o-m-m-u-n-i-t-y -t-h-a-t---
            -(-1-) -m-e-e-t-s -o-b-j-e-c-t-i-v-e -c-r-i-t-e-r-i-a -o-f 
        -d-i-s-t-r-e-s-s-, -i-n-c-l-u-d-i-n-g -t-h-e -n-u-m-b-e-r -o-f 
        -l-o-w---i-n-c-o-m-e -f-a-m-i-l-i-e-s-, -t-h-e -e-x-t-e-n-t 
        -o-f -p-o-v-e-r-t-y-, -t-h-e -e-x-t-e-n-t -o-f 
        -u-n-e-m-p-l-o-y-m-e-n-t-, -t-h-e -e-x-t-e-n-t -o-f -u-n-m-e-t 
        -c-r-e-d-i-t -n-e-e-d-s-, -t-h-e -d-e-g-r-e-e -o-f 
        -a-v-a-i-l-a-b-i-l-i-t-y -o-f -b-a-s-i-c -f-i-n-a-n-c-i-a-l 
        -s-e-r-v-i-c-e-s-, -t-h-e -d-e-g-r-e-e -o-f -l-i-m-i-t-e-d 
        -a-c-c-e-s-s -t-o -c-a-p-i-t-a-l -a-n-d -c-r-e-d-i-t 
        -p-r-o-v-i-d-e-d -b-y -e-x-i-s-t-i-n-g -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n-s-, -a-n-d -o-t-h-e-r -f-a-c-t-o-r-s 
        -t-h-a-t -t-h-e -F-u-n-d -d-e-t-e-r-m-i-n-e-s -t-o -b-e 
        -a-p-p-r-o-p-r-i-a-t-e-; -o-r
            -(-2-) -i-s -l-o-c-a-t-e-d -i-n -a-n -e-m-p-o-w-e-r-m-e-n-t 
        -z-o-n-e -o-r -e-n-t-e-r-p-r-i-s-e -c-o-m-m-u-n-i-t-y 
        -d-e-s-i-g-n-a-t-e-d -u-n-d-e-r -s-e-c-t-i-o-n -1-3-9-1 -o-f 
        -t-h-e -I-n-t-e-r-n-a-l -R-e-v-e-n-u-e -C-o-d-e -o-f -1-9-8-6-.
    -(-i-) -Q-u-a-l-i-f-i-e-d -C-o-m-m-u-n-i-t-y -D-e-v-e-l-o-p-m-e-n-t 
-F-i-n-a-n-c-i-a-l -I-n-s-t-i-t-u-t-i-o-n-.----T-h-e -t-e-r-m 
-`-`-q-u-a-l-i-f-i-e-d -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
-f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-'-' -m-e-a-n-s -a 
-c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
-i-n-s-t-i-t-u-t-i-o-n -t-h-a-t -m-e-e-t-s -t-h-e 
-r-e-q-u-i-r-e-m-e-n-t-s -o-f -s-e-c-t-i-o-n-s -5-(-b-) -(-2-) 
-t-h-r-o-u-g-h -(-8-) -o-f -t-h-i-s -A-c-t-.
    -(-j-) -T-a-r-g-e-t-e-d -P-o-p-u-l-a-t-i-o-n-.----T-h-e -t-e-r-m 
-`-`-t-a-r-g-e-t-e-d -p-o-p-u-l-a-t-i-o-n-'-' -m-e-a-n-s -a-n 
-i-d-e-n-t-i-f-i-a-b-l-e -g-r-o-u-p -o-f -l-o-w---i-n-c-o-m-e -o-r 
-d-i-s-a-d-v-a-n-t-a-g-e-d -p-e-r-s-o-n-s -t-h-a-t -a-r-e 
-u-n-d-e-r-s-e-r-v-e-d -b-y -e-x-i-s-t-i-n-g -f-i-n-a-n-c-i-a-l 
-i-n-s-t-i-t-u-t-i-o-n-s-.

-S-E-C-. -4-. -E-S-T-A-B-L-I-S-H-M-E-N-T -O-F -N-A-T-I-O-N-A-L -F-U-N-D 
              -F-O-R -C-O-M-M-U-N-I-T-Y -D-E-V-E-L-O-P-M-E-N-T 
              -B-A-N-K-I-N-G-.

    -(-a-) -I-n -G-e-n-e-r-a-l-.----T-h-e-r-e -i-s -c-r-e-a-t-e-d 
-a-n-d -c-h-a-r-t-e-r-e-d -a -b-o-d-y -c-o-r-p-o-r-a-t-e -t-o -b-e 
-k-n-o-w-n -a-s -t-h-e -C-o-m-m-u-n-i-t-y -D-e-v-e-l-o-p-m-e-n-t 
-B-a-n-k-i-n-g -a-n-d -F-i-n-a-n-c-i-a-l -I-n-s-t-i-t-u-t-i-o-n-s 
-F-u-n-d -(-r-e-f-e-r-r-e-d -t-o -i-n -t-h-i-s -A-c-t -a-s -t-h-e 
-`-`-F-u-n-d-'-'-) -t-h-a-t -s-h-a-l-l -h-a-v-e -t-h-e -p-o-w-e-r-s 
-a-n-d -r-e-s-p-o-n-s-i-b-i-l-i-t-i-e-s -s-p-e-c-i-f-i-e-d -b-y 
-t-h-i-s -A-c-t-. -T-h-e -F-u-n-d -s-h-a-l-l -h-a-v-e 
-s-u-c-c-e-s-s-i-o-n -u-n-t-i-l -d-i-s-s-o-l-v-e-d-. -T-h-e 
-c-h-a-r-t-e-r -o-f -t-h-e -F-u-n-d -m-a-y -b-e -r-e-v-i-s-e-d-, 
-a-m-e-n-d-e-d-, -o-r -m-o-d-i-f-i-e-d -b-y -C-o-n-g-r-e-s-s -a-t 
-a-n-y -t-i-m-e-. -T-h-e -o-f-f-i-c-e-s -o-f -t-h-e -F-u-n-d -s-h-a-l-l 
-b-e -i-n -W-a-s-h-i-n-g-t-o-n-, -D-.-C-.
    -(-b-) -B-o-a-r-d -o-f -D-i-r-e-c-t-o-r-s-.---
            -(-1-) -I-n -g-e-n-e-r-a-l-.----T-h-e -p-o-w-e-r-s -a-n-d 
        -m-a-n-a-g-e-m-e-n-t -o-f -t-h-e -F-u-n-d -s-h-a-l-l -b-e 
        -v-e-s-t-e-d -i-n -a -B-o-a-r-d -o-f -D-i-r-e-c-t-o-r-s 
        -(-r-e-f-e-r-r-e-d -t-o -i-n -t-h-i-s -A-c-t -a-s -t-h-e 
        -`-`-B-o-a-r-d-'-'-)-, -w-h-i-c-h -s-h-a-l-l -h-a-v-e -n-i-n-e 
        -m-e-m-b-e-r-s-.
            -(-2-) -M-e-m-b-e-r-s-.----T-h-e -m-e-m-b-e-r-s -o-f -t-h-e 
        -B-o-a-r-d -s-h-a-l-l -c-o-n-s-i-s-t -o-f -t-h-e 
        -f-o-l-l-o-w-i-n-g-:
                    -(-A-) -T-h-e -S-e-c-r-e-t-a-r-y -o-f 
                -A-g-r-i-c-u-l-t-u-r-e-.
                    -(-B-) -T-h-e -S-e-c-r-e-t-a-r-y -o-f 
                -C-o-m-m-e-r-c-e-.
                    -(-C-) -T-h-e -S-e-c-r-e-t-a-r-y -o-f 
                -H-o-u-s-i-n-g -a-n-d -U-r-b-a-n 
                -D-e-v-e-l-o-p-m-e-n-t-.
                    -(-D-) -T-h-e -S-e-c-r-e-t-a-r-y -o-f -t-h-e 
                -T-r-e-a-s-u-r-y-.
                    -(-E-) -T-h-e -A-d-m-i-n-i-s-t-r-a-t-o-r -o-f 
                -t-h-e -S-m-a-l-l -B-u-s-i-n-e-s-s 
                -A-d-m-i-n-i-s-t-r-a-t-i-o-n-.
                    -(-F-) -F-o-u-r -p-r-i-v-a-t-e -c-i-t-i-z-e-n-s-, 
                -a-p-p-o-i-n-t-e-d -b-y -t-h-e -P-r-e-s-i-d-e-n-t 
                -w-i-t-h -t-h-e -a-d-v-i-c-e -a-n-d -c-o-n-s-e-n-t -o-f 
                -t-h-e -S-e-n-a-t-e-, -t-h-a-t 
                -c-o-l-l-e-c-t-i-v-e-l-y---
                            -(-i-) -r-e-p-r-e-s-e-n-t 
                        -c-o-m-m-u-n-i-t-y -g-r-o-u-p-s -w-h-o-s-e 
                        -c-o-n-s-t-i-t-u-e-n-c-i-e-s -i-n-c-l-u-d-e 
                        -l-o-w---i-n-c-o-m-e -p-e-r-s-o-n-s -o-r 
                        -r-e-s-i-d-e-n-t-s -o-f -i-n-v-e-s-t-m-e-n-t 
                        -a-r-e-a-s-,
                            -(-i-i-) -h-a-v-e -e-x-p-e-r-t-i-s-e -i-n 
                        -t-h-e -o-p-e-r-a-t-i-o-n-s -a-n-d 
                        -a-c-t-i-v-i-t-i-e-s -o-f -i-n-s-u-r-e-d 
                        -d-e-p-o-s-i-t-o-r-y -i-n-s-t-i-t-u-t-i-o-n-s-, 
                        -a-n-d
                            -(-i-i-i-) -h-a-v-e -e-x-p-e-r-t-i-s-e -i-n 
                        -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
                        -a-n-d -l-e-n-d-i-n-g-;
                -p-r-o-v-i-d-e-d -t-h-a-t -t-h-e-r-e -s-h-o-u-l-d 
                -n-o-t -b-e -l-e-s-s -t-h-a-n -o-n-e -m-e-m-b-e-r 
                -f-r-o-m -e-a-c-h -o-f -t-h-e -t-h-r-e-e 
                -c-a-t-e-g-o-r-i-e-s -d-e-s-c-r-i-b-e-d -i-n 
                -c-l-a-u-s-e-s -(-i-) -t-h-r-o-u-g-h -(-i-i-i-) -o-f 
                -t-h-i-s -s-u-b-p-a-r-a-g-r-a-p-h-.
            -(-3-) -C-h-a-i-r-p-e-r-s-o-n-.----T-h-e -P-r-e-s-i-d-e-n-t 
        -s-h-a-l-l -a-p-p-o-i-n-t -f-r-o-m -a-m-o-n-g -t-h-e 
        -m-e-m-b-e-r-s -o-f -t-h-e -B-o-a-r-d -s-p-e-c-i-f-i-e-d -i-n 
        -p-a-r-a-g-r-a-p-h -(-2-)-(-F-) -a -c-h-a-i-r-p-e-r-s-o-n -o-f 
        -t-h-e -B-o-a-r-d-, -w-h-o -s-h-a-l-l -s-e-r-v-e -a-t -t-h-e 
        -p-l-e-a-s-u-r-e -o-f -t-h-e -P-r-e-s-i-d-e-n-t -f-o-r -a 
        -t-e-r-m -o-f -t-w-o -y-e-a-r-s-.
            -(-4-) -V-i-c-e---C-h-a-i-r-p-e-r-s-o-n-.----T-h-e 
        -P-r-e-s-i-d-e-n-t -s-h-a-l-l -a-p-p-o-i-n-t -f-r-o-m 
        -a-m-o-n-g -t-h-e -m-e-m-b-e-r-s -s-p-e-c-i-f-i-e-d -i-n 
        -p-a-r-a-g-r-a-p-h -(-2-) -a -v-i-c-e---c-h-a-i-r-p-e-r-s-o-n 
        -w-h-o -w-i-l-l -s-e-r-v-e -a-s -c-h-a-i-r-p-e-r-s-o-n -i-n 
        -t-h-e -a-b-s-e-n-c-e-, -d-i-s-a-b-i-l-i-t-y-, -o-r 
        -r-e-c-u-s-a-l -o-f -t-h-e -c-h-a-i-r-p-e-r-s-o-n-. -T-h-e 
        -v-i-c-e---c-h-a-i-r-p-e-r-s-o-n -s-h-a-l-l -s-e-r-v-e -a-t 
        -t-h-e -p-l-e-a-s-u-r-e -o-f -t-h-e -P-r-e-s-i-d-e-n-t -f-o-r 
        -a -t-e-r-m -o-f -t-w-o -y-e-a-r-s-.
            -(-5-) -T-e-r-m-s -o-f -a-p-p-o-i-n-t-e-d 
        -m-e-m-b-e-r-s-.---
                    -(-A-) -I-n -g-e-n-e-r-a-l-.----E-a-c-h 
                -m-e-m-b-e-r -a-p-p-o-i-n-t-e-d -p-u-r-s-u-a-n-t -t-o 
                -p-a-r-a-g-r-a-p-h -(-2-)-(-F-) -s-h-a-l-l -s-e-r-v-e 
                -a-t -t-h-e -p-l-e-a-s-u-r-e -o-f -t-h-e 
                -P-r-e-s-i-d-e-n-t -f-o-r -a -t-e-r-m -o-f -f-o-u-r 
                -y-e-a-r-s-, -e-x-c-e-p-t -a-s -p-r-o-v-i-d-e-d -i-n 
                -p-a-r-a-g-r-a-p-h -(-5-)-(-C-)-.
                    -(-B-) -V-a-c-a-n-c-i-e-s-.----A-n-y -m-e-m-b-e-r 
                -a-p-p-o-i-n-t-e-d -t-o -f-i-l-l -a -v-a-c-a-n-c-y 
                -o-c-c-u-r-r-i-n-g -p-r-i-o-r -t-o -t-h-e 
                -e-x-p-i-r-a-t-i-o-n -o-f -t-h-e -t-e-r-m -f-o-r 
                -w-h-i-c-h -t-h-e -p-r-e-v-i-o-u-s -m-e-m-b-e-r -w-a-s 
                -a-p-p-o-i-n-t-e-d -s-h-a-l-l -b-e -a-p-p-o-i-n-t-e-d 
                -f-o-r -t-h-e -r-e-m-a-i-n-d-e-r -o-f -s-u-c-h 
                -t-e-r-m-. -A-p-p-o-i-n-t-e-d -m-e-m-b-e-r-s -m-a-y 
                -c-o-n-t-i-n-u-e -t-o -s-e-r-v-e -f-o-l-l-o-w-i-n-g 
                -t-h-e -e-x-p-i-r-a-t-i-o-n -o-f -t-h-e-i-r -t-e-r-m-s 
                -u-n-t-i-l -a -s-u-c-c-e-s-s-o-r -i-s 
                -a-p-p-o-i-n-t-e-d -a-n-d -q-u-a-l-i-f-i-e-d-.
                    -(-C-) -T-e-r-m-s-.----T-h-e -t-e-r-m-s -o-f -t-h-e 
                -i-n-i-t-i-a-l -a-p-p-o-i-n-t-e-d -m-e-m-b-e-r-s 
                -s-h-a-l-l -b-e -f-o-r -f-o-u-r -y-e-a-r-s -a-n-d 
                -s-h-a-l-l -b-e-g-i-n -o-n -t-h-e -d-a-t-e -e-a-c-h 
                -m-e-m-b-e-r -i-s -a-p-p-o-i-n-t-e-d-, -e-x-c-e-p-t 
                -t-h-a-t -t-w-o -o-f -t-h-e -m-e-m-b-e-r-s 
                -i-n-i-t-i-a-l-l-y -a-p-p-o-i-n-t-e-d -p-u-r-s-u-a-n-t 
                -t-o -p-a-r-a-g-r-a-p-h -(-2-)-(-F-) -s-h-a-l-l -b-e 
                -d-e-s-i-g-n-a-t-e-d -t-o -s-e-r-v-e -a-t -t-h-e 
                -p-l-e-a-s-u-r-e -o-f -t-h-e -P-r-e-s-i-d-e-n-t -f-o-r 
                -f-i-v-e -y-e-a-r-s-.
            -(-6-) -A-c-t-i-n-g -o-f-f-i-c-i-a-l-s-.----I-n -t-h-e 
        -e-v-e-n-t -o-f -a -v-a-c-a-n-c-y -o-r -a-b-s-e-n-c-e -o-f 
        -t-h-e -i-n-d-i-v-i-d-u-a-l -i-n -a-n-y -o-f -t-h-e 
        -o-f-f-i-c-e-s -d-e-s-c-r-i-b-e-d -i-n -p-a-r-a-g-r-a-p-h-s 
        -(-2-) -(-A-) -t-h-r-o-u-g-h -(-E-)-, -t-h-e -o-f-f-i-c-i-a-l 
        -a-c-t-i-n-g -i-n -t-h-a-t -o-f-f-i-c-e -s-h-a-l-l -b-e -a 
        -m-e-m-b-e-r -o-f -t-h-e -B-o-a-r-d-.
            -(-7-) -A-u-t-h-o-r-i-t-y -t-o -d-e-l-e-g-a-t-e-.---
        -E-a-c-h -m-e-m-b-e-r -o-f -t-h-e -B-o-a-r-d -s-p-e-c-i-f-i-e-d 
        -i-n -p-a-r-a-g-r-a-p-h-s -(-2-) -(-A-) -t-h-r-o-u-g-h -(-E-) 
        -m-a-y -d-e-s-i-g-n-a-t-e -a-n-o-t-h-e-r -o-f-f-i-c-i-a-l 
        -w-h-o -h-a-s -b-e-e-n -a-p-p-o-i-n-t-e-d -b-y -t-h-e 
        -P-r-e-s-i-d-e-n-t -w-i-t-h -t-h-e -a-d-v-i-c-e -a-n-d 
        -c-o-n-s-e-n-t -o-f -t-h-e -S-e-n-a-t-e -w-i-t-h-i-n -t-h-e 
        -s-a-m-e -a-g-e-n-c-y -t-o -s-e-r-v-e -a-s -a -m-e-m-b-e-r -i-n 
        -h-i-s -o-r -h-e-r -s-t-e-a-d-.
            -(-8-) -C-o-m-p-e-n-s-a-t-i-o-n-.----M-e-m-b-e-r-s -o-f 
        -t-h-e -B-o-a-r-d -w-h-o -a-r-e -o-t-h-e-r-w-i-s-e 
        -o-f-f-i-c-e-r-s -o-r -e-m-p-l-o-y-e-e-s -o-f -t-h-e 
        -U-n-i-t-e-d -S-t-a-t-e-s -s-h-a-l-l -s-e-r-v-e -w-i-t-h-o-u-t 
        -a-d-d-i-t-i-o-n-a-l -c-o-m-p-e-n-s-a-t-i-o-n -f-o-r -t-h-e-i-r 
        -d-u-t-i-e-s -a-s -m-e-m-b-e-r-s-, -b-u-t -s-h-a-l-l -b-e 
        -r-e-i-m-b-u-r-s-e-d -b-y -t-h-e -F-u-n-d -f-o-r -t-r-a-v-e-l-, 
        -p-e-r -d-i-e-m-, -a-n-d -o-t-h-e-r -n-e-c-e-s-s-a-r-y 
        -e-x-p-e-n-s-e-s -i-n-c-u-r-r-e-d -i-n -t-h-e 
        -p-e-r-f-o-r-m-a-n-c-e -o-f -t-h-e-i-r -d-u-t-i-e-s-, -i-n 
        -a-c-c-o-r-d-a-n-c-e -w-i-t-h -s-e-c-t-i-o-n-s -5-7-0-2 -a-n-d 
        -5-7-0-3 -o-f -t-i-t-l-e -5-, -U-n-i-t-e-d -S-t-a-t-e-s 
        -C-o-d-e-. -T-h-e -a-p-p-o-i-n-t-e-d -m-e-m-b-e-r-s -o-f -t-h-e 
        -B-o-a-r-d -s-h-a-l-l -b-e -e-n-t-i-t-l-e-d -t-o -r-e-c-e-i-v-e 
        -c-o-m-p-e-n-s-a-t-i-o-n -a-t -t-h-e -d-a-i-l-y 
        -e-q-u-i-v-a-l-e-n-t -o-f -t-h-e -r-a-t-e -f-o-r -a 
        -p-o-s-i-t-i-o-n -u-n-d-e-r -L-e-v-e-l -I-V -o-f -t-h-e 
        -E-x-e-c-u-t-i-v-e -S-c-h-e-d-u-l-e -u-n-d-e-r -s-e-c-t-i-o-n 
        -5-3-1-5 -o-f -t-i-t-l-e -5-, -U-n-i-t-e-d -S-t-a-t-e-s 
        -C-o-d-e-, -a-n-d -s-h-a-l-l -b-e -r-e-i-m-b-u-r-s-e-d -b-y 
        -t-h-e -F-u-n-d -f-o-r -t-r-a-v-e-l-, -p-e-r -d-i-e-m-, -a-n-d 
        -o-t-h-e-r -n-e-c-e-s-s-a-r-y -e-x-p-e-n-s-e-s -i-n-c-u-r-r-e-d 
        -i-n -t-h-e -p-e-r-f-o-r-m-a-n-c-e -o-f -t-h-e-i-r 
        -d-u-t-i-e-s-, -i-n -a-c-c-o-r-d-a-n-c-e -w-i-t-h 
        -s-e-c-t-i-o-n-s -5-7-0-2 -a-n-d -5-7-0-3 -o-f -t-i-t-l-e -5-, 
        -U-n-i-t-e-d -S-t-a-t-e-s -C-o-d-e-.
            -(-9-) -M-e-e-t-i-n-g-s-.----T-h-e -B-o-a-r-d -s-h-a-l-l 
        -h-o-l-d -m-e-e-t-i-n-g-s -a-t -l-e-a-s-t -q-u-a-r-t-e-r-l-y-. 
        -S-p-e-c-i-a-l -m-e-e-t-i-n-g-s -o-f -t-h-e -B-o-a-r-d -m-a-y 
        -b-e -c-a-l-l-e-d -b-y -t-h-e -C-h-a-i-r-p-e-r-s-o-n -o-r -o-n 
        -t-h-e -w-r-i-t-t-e-n -r-e-q-u-e-s-t -o-f -t-h-r-e-e 
        -m-e-m-b-e-r-s -o-f -t-h-e -B-o-a-r-d-. -A -m-a-j-o-r-i-t-y 
        -o-f -t-h-e -m-e-m-b-e-r-s -o-f -t-h-e -B-o-a-r-d -i-n 
        -o-f-f-i-c-e -s-h-a-l-l -c-o-n-s-t-i-t-u-t-e -a -q-u-o-r-u-m-.
    -(-c-) -O-f-f-i-c-e-r-s -a-n-d -E-m-p-l-o-y-e-e-s-.----T-h-e 
-B-o-a-r-d -s-h-a-l-l -a-p-p-o-i-n-t -a -C-h-i-e-f -E-x-e-c-u-t-i-v-e 
-O-f-f-i-c-e-r -w-h-o -w-i-l-l -b-e -r-e-s-p-o-n-s-i-b-l-e -f-o-r 
-t-h-e -m-a-n-a-g-e-m-e-n-t -o-f -t-h-e -F-u-n-d -a-n-d -s-u-c-h 
-o-t-h-e-r -d-u-t-i-e-s -d-e-e-m-e-d -a-p-p-r-o-p-r-i-a-t-e -b-y -t-h-e 
-B-o-a-r-d-. -T-h-e -B-o-a-r-d -s-h-a-l-l -a-p-p-o-i-n-t -a -C-h-i-e-f 
-F-i-n-a-n-c-i-a-l -O-f-f-i-c-e-r -w-h-o -s-h-a-l-l -o-v-e-r-s-e-e 
-a-l-l -o-f -t-h-e -f-i-n-a-n-c-i-a-l -m-a-n-a-g-e-m-e-n-t 
-a-c-t-i-v-i-t-i-e-s -o-f -t-h-e -F-u-n-d-. -T-h-e -B-o-a-r-d 
-s-h-a-l-l -a-l-s-o -a-p-p-o-i-n-t -a-n -I-n-s-p-e-c-t-o-r 
-G-e-n-e-r-a-l-. -T-h-e -B-o-a-r-d -m-a-y -a-p-p-o-i-n-t -s-u-c-h 
-o-t-h-e-r -o-f-f-i-c-e-r-s -a-n-d -e-m-p-l-o-y-e-e-s -o-f -t-h-e 
-F-u-n-d -a-s -t-h-e -B-o-a-r-d -d-e-t-e-r-m-i-n-e-s -t-o -b-e 
-n-e-c-e-s-s-a-r-y -o-r -a-p-p-r-o-p-r-i-a-t-e-. -T-h-e -C-h-i-e-f 
-E-x-e-c-u-t-i-v-e -O-f-f-i-c-e-r-, -C-h-i-e-f -F-i-n-a-n-c-i-a-l 
-O-f-f-i-c-e-r-, -a-n-d -u-p -t-o -3 -o-t-h-e-r -o-f-f-i-c-e-r-s -o-f 
-t-h-e -F-u-n-d -m-a-y -b-e -a-p-p-o-i-n-t-e-d -w-i-t-h-o-u-t 
-r-e-g-a-r-d -t-o -t-h-e -p-r-o-v-i-s-i-o-n-s -o-f -t-i-t-l-e -5 -o-f 
-t-h-e -U-n-i-t-e-d -S-t-a-t-e-s -C-o-d-e -g-o-v-e-r-n-i-n-g 
-a-p-p-o-i-n-t-m-e-n-t-s -i-n -t-h-e -F-e-d-e-r-a-l -s-e-r-v-i-c-e 
-a-n-d -c-o-m-p-e-n-s-a-t-e-d -w-i-t-h-o-u-t -r-e-g-a-r-d -t-o 
-c-h-a-p-t-e-r -5-1 -a-n-d -s-u-b-c-h-a-p-t-e-r -I-I-I -o-f 
-c-h-a-p-t-e-r -5-3 -o-f -t-i-t-l-e -5 -o-f -t-h-e -U-n-i-t-e-d 
-S-t-a-t-e-s -C-o-d-e-, -e-x-c-e-p-t -t-h-a-t -t-h-e -r-a-t-e -o-f 
-p-a-y -f-o-r -t-h-e -C-h-i-e-f -E-x-e-c-u-t-i-v-e -O-f-f-i-c-e-r 
-s-h-a-l-l -n-o-t -e-x-c-e-e-d -t-h-e -r-a-t-e -f-o-r -a 
-p-o-s-i-t-i-o-n -u-n-d-e-r -L-e-v-e-l -I-I -o-f -t-h-e 
-E-x-e-c-u-t-i-v-e -S-c-h-e-d-u-l-e -u-n-d-e-r -s-e-c-t-i-o-n -5-3-1-3 
-o-f -t-i-t-l-e -5 -o-f -t-h-e -U-n-i-t-e-d -S-t-a-t-e-s -C-o-d-e 
-a-n-d -t-h-e -r-a-t-e -o-f -p-a-y -f-o-r -t-h-e -r-e-m-a-i-n-i-n-g 
-f-o-u-r -o-f-f-i-c-e-r-s -s-h-a-l-l -n-o-t -e-x-c-e-e-d -t-h-e 
-r-a-t-e -f-o-r -a -p-o-s-i-t-i-o-n -u-n-d-e-r -L-e-v-e-l -I-V -o-f 
-t-h-e -E-x-e-c-u-t-i-v-e -S-c-h-e-d-u-l-e -u-n-d-e-r -s-e-c-t-i-o-n 
-5-3-1-5 -o-f -t-i-t-l-e -5 -o-f -t-h-e -U-n-i-t-e-d -S-t-a-t-e-s 
-C-o-d-e-.
    -(-d-) -G-e-n-e-r-a-l -P-o-w-e-r-s-.----I-n -c-a-r-r-y-i-n-g -o-u-t 
-i-t-s -p-o-w-e-r-s -a-n-d -d-u-t-i-e-s-, -t-h-e -F-u-n-d---
            -(-1-) -s-h-a-l-l -h-a-v-e -a-l-l -n-e-c-e-s-s-a-r-y -a-n-d 
        -p-r-o-p-e-r -p-o-w-e-r-s -t-o -c-a-r-r-y -o-u-t -i-t-s 
        -a-u-t-h-o-r-i-t-y -u-n-d-e-r -t-h-i-s -A-c-t-;
            -(-2-) -m-a-y -a-d-o-p-t-, -a-l-t-e-r-, -a-n-d -u-s-e -a 
        -c-o-r-p-o-r-a-t-e -s-e-a-l-, -w-h-i-c-h -s-h-a-l-l -b-e 
        -j-u-d-i-c-i-a-l-l-y -n-o-t-i-c-e-d-;
            -(-3-) -m-a-y -s-u-e -a-n-d -b-e -s-u-e-d -i-n -i-t-s 
        -c-o-r-p-o-r-a-t-e -n-a-m-e -a-n-d -c-o-m-p-l-a-i-n -a-n-d 
        -d-e-f-e-n-d -i-n -a-n-y -c-o-u-r-t -o-f -c-o-m-p-e-t-e-n-t 
        -j-u-r-i-s-d-i-c-t-i-o-n-;
            -(-4-) -m-a-y -a-d-o-p-t-, -a-m-e-n-d-, -a-n-d -r-e-p-e-a-l 
        -b-y-l-a-w-s-, -r-u-l-e-s-, -a-n-d -r-e-g-u-l-a-t-i-o-n-s 
        -g-o-v-e-r-n-i-n-g -t-h-e -m-a-n-n-e-r -i-n -w-h-i-c-h -i-t-s 
        -b-u-s-i-n-e-s-s -m-a-y -b-e -c-o-n-d-u-c-t-e-d -a-n-d 
        -s-h-a-l-l -h-a-v-e -p-o-w-e-r -t-o -m-a-k-e -s-u-c-h 
        -r-u-l-e-s -a-n-d -r-e-g-u-l-a-t-i-o-n-s -a-s -m-a-y -b-e 
        -n-e-c-e-s-s-a-r-y -o-r -a-p-p-r-o-p-r-i-a-t-e -t-o 
        -i-m-p-l-e-m-e-n-t -t-h-e -p-r-o-v-i-s-i-o-n-s -o-f -t-h-i-s 
        -A-c-t-;
            -(-5-) -m-a-y -e-n-t-e-r -i-n-t-o -a-n-d -p-e-r-f-o-r-m 
        -s-u-c-h -a-g-r-e-e-m-e-n-t-s-, -c-o-n-t-r-a-c-t-s-, -a-n-d 
        -t-r-a-n-s-a-c-t-i-o-n-s -a-s -m-a-y -b-e -d-e-e-m-e-d 
        -n-e-c-e-s-s-a-r-y -o-r -a-p-p-r-o-p-r-i-a-t-e -t-o -t-h-e 
        -c-o-n-d-u-c-t -o-f -a-c-t-i-v-i-t-i-e-s -a-u-t-h-o-r-i-z-e-d 
        -u-n-d-e-r -t-h-i-s -A-c-t-;
            -(-6-) -m-a-y -d-e-t-e-r-m-i-n-e -t-h-e -c-h-a-r-a-c-t-e-r 
        -o-f -a-n-d -n-e-c-e-s-s-i-t-y -f-o-r -i-t-s 
        -e-x-p-e-n-d-i-t-u-r-e-s -a-n-d -t-h-e -m-a-n-n-e-r -i-n 
        -w-h-i-c-h -t-h-e-y -s-h-a-l-l -b-e -i-n-c-u-r-r-e-d-, 
        -a-l-l-o-w-e-d-, -a-n-d -p-a-i-d-;
            -(-7-) -m-a-y -u-t-i-l-i-z-e -o-r -e-m-p-l-o-y -t-h-e 
        -s-e-r-v-i-c-e-s -o-f -p-e-r-s-o-n-n-e-l -o-f -a-n-y 
        -a-g-e-n-c-y -o-r -i-n-s-t-r-u-m-e-n-t-a-l-i-t-y -o-f -t-h-e 
        -U-n-i-t-e-d -S-t-a-t-e-s -w-i-t-h -t-h-e -c-o-n-s-e-n-t -o-f 
        -t-h-e -a-g-e-n-c-y -o-r -i-n-s-t-r-u-m-e-n-t-a-l-i-t-y 
        -c-o-n-c-e-r-n-e-d -o-n -a -r-e-i-m-b-u-r-s-a-b-l-e -o-r -n-o-n 
        -r-e-i-m-b-u-r-s-a-b-l-e -b-a-s-i-s-; -a-n-d
            -(-8-) -m-a-y -e-x-e-c-u-t-e -a-l-l -i-n-s-t-r-u-m-e-n-t-s 
        -n-e-c-e-s-s-a-r-y -o-r -a-p-p-r-o-p-r-i-a-t-e -i-n -t-h-e 
        -e-x-e-r-c-i-s-e -o-f -a-n-y -o-f -i-t-s -f-u-n-c-t-i-o-n-s 
        -u-n-d-e-r -t-h-i-s -A-c-t -a-n-d -m-a-y -d-e-l-e-g-a-t-e -t-o 
        -m-e-m-b-e-r-s -o-f -t-h-e -B-o-a-r-d-, -t-h-e -C-h-i-e-f 
        -E-x-e-c-u-t-i-v-e -O-f-f-i-c-e-r-, -o-r -t-h-e 
        -o-f-f-i-c-e-r-s -o-f -t-h-e -F-u-n-d -s-u-c-h -o-f -i-t-s 
        -p-o-w-e-r-s -a-n-d -r-e-s-p-o-n-s-i-b-i-l-i-t-i-e-s -a-s -i-t 
        -d-e-e-m-s -n-e-c-e-s-s-a-r-y -o-r -a-p-p-r-o-p-r-i-a-t-e 
        -f-o-r -t-h-e -a-d-m-i-n-i-s-t-r-a-t-i-o-n -o-f -t-h-e 
        -F-u-n-d-.
    -(-e-) -W-h-o-l-l-y---O-w-n-e-d -G-o-v-e-r-n-m-e-n-t 
-C-o-r-p-o-r-a-t-i-o-n-.---
            -(-1-) -T-h-e -F-u-n-d -s-h-a-l-l -b-e -a -w-h-o-l-l-y--
        -o-w-n-e-d -G-o-v-e-r-n-m-e-n-t -c-o-r-p-o-r-a-t-i-o-n -i-n 
        -t-h-e -E-x-e-c-u-t-i-v-e -b-r-a-n-c-h -a-n-d -s-h-a-l-l -b-e 
        -t-r-e-a-t-e-d -i-n -a-l-l -r-e-s-p-e-c-t-s -a-s -a-n 
        -a-g-e-n-c-y -o-f -t-h-e -U-n-i-t-e-d -S-t-a-t-e-s-, 
        -e-x-c-e-p-t -t-o -t-h-e -e-x-t-e-n-t -t-h-i-s -A-c-t 
        -p-r-o-v-i-d-e-s -o-t-h-e-r-w-i-s-e-.
            -(-2-) -S-e-c-t-i-o-n -9-1-0-1-(-3-) -o-f -t-i-t-l-e -3-1-, 
        -U-n-i-t-e-d -S-t-a-t-e-s -C-o-d-e -(-t-h-e 
        -G-o-v-e-r-n-m-e-n-t -C-o-r-p-o-r-a-t-i-o-n -C-o-n-t-r-o-l 
        -A-c-t-)-, -i-s -a-m-e-n-d-e-d---
                    -(-A-) -b-y -r-e-d-e-s-i-g-n-a-t-i-n-g 
                -p-a-r-a-g-r-a-p-h-s -(-B-) -t-h-r-o-u-g-h -(-M-) -a-s 
                -p-a-r-a-g-r-a-p-h-s -(-C-) -t-h-r-o-u-g-h -(-N-)-, 
                -r-e-s-p-e-c-t-i-v-e-l-y-; -a-n-d
                    -(-B-) -b-y -i-n-s-e-r-t-i-n-g -a-f-t-e-r 
                -p-a-r-a-g-r-a-p-h -(-A-) -t-h-e -f-o-l-l-o-w-i-n-g-:
            -`-`-(-B-) -t-h-e -C-o-m-m-u-n-i-t-y -D-e-v-e-l-o-p-m-e-n-t 
        -B-a-n-k-i-n-g -a-n-d -F-i-n-a-n-c-i-a-l 
        -I-n-s-t-i-t-u-t-i-o-n-s -F-u-n-d-.-'-'-; -a-n-d
            -(-3-) -S-e-c-t-i-o-n -9-1-0-7-(-b-) -o-f -t-i-t-l-e -3-1-, 
        -U-n-i-t-e-d -S-t-a-t-e-s -C-o-d-e -(-t-h-e 
        -G-o-v-e-r-n-m-e-n-t -C-o-r-p-o-r-a-t-i-o-n -C-o-n-t-r-o-l 
        -A-c-t-)-, -s-h-a-l-l -n-o-t -a-p-p-l-y -t-o -d-e-p-o-s-i-t-s 
        -o-f -t-h-e -F-u-n-d -m-a-d-e -p-u-r-s-u-a-n-t -t-o 
        -s-e-c-t-i-o-n -7 -o-f -t-h-i-s -A-c-t-.
    -(-f-) -L-i-m-i-t-a-t-i-o-n -o-f -F-u-n-d -a-n-d -F-e-d-e-r-a-l 
-L-i-a-b-i-l-i-t-y-.----T-h-e -l-i-a-b-i-l-i-t-y -o-f -t-h-e -F-u-n-d 
-a-n-d -o-f -t-h-e -U-n-i-t-e-d -S-t-a-t-e-s -G-o-v-e-r-n-m-e-n-t 
-a-r-i-s-i-n-g -o-u-t -o-f -a-n-y -i-n-v-e-s-t-m-e-n-t -i-n -a 
-c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
-i-n-s-t-i-t-u-t-i-o-n -i-n -a-c-c-o-r-d-a-n-c-e -w-i-t-h -t-h-i-s 
-A-c-t -s-h-a-l-l -b-e -l-i-m-i-t-e-d -t-o -t-h-e -a-m-o-u-n-t -o-f 
-t-h-e -i-n-v-e-s-t-m-e-n-t -a-n-d -t-h-e -F-u-n-d -s-h-a-l-l -b-e 
-e-x-e-m-p-t -f-r-o-m -a-n-y -a-s-s-e-s-s-m-e-n-t-s -a-n-d -o-t-h-e-r 
-l-i-a-b-i-l-i-t-i-e-s -t-h-a-t -m-a-y -b-e -i-m-p-o-s-e-d -o-n 
-c-o-n-t-r-o-l-l-i-n-g -o-r -p-r-i-n-c-i-p-a-l -s-h-a-r-e-h-o-l-d-e-r-s 
-b-y -a-n-y -F-e-d-e-r-a-l -l-a-w -o-r -t-h-e -l-a-w -o-f -a-n-y 
-S-t-a-t-e-, -t-e-r-r-i-t-o-r-y-, -o-r -t-h-e -D-i-s-t-r-i-c-t -o-f 
-C-o-l-u-m-b-i-a-. -A -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
-f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n -t-h-a-t -r-e-c-e-i-v-e-s 
-a-s-s-i-s-t-a-n-c-e -p-u-r-s-u-a-n-t -t-o -t-h-i-s -A-c-t -s-h-a-l-l 
-n-o-t -b-e -d-e-e-m-e-d -t-o -b-e -a-n -a-g-e-n-c-y-, 
-d-e-p-a-r-t-m-e-n-t-, -o-r -i-n-s-t-r-u-m-e-n-t-a-l-i-t-y -o-f -t-h-e 
-U-n-i-t-e-d -S-t-a-t-e-s-.
    -(-g-) -P-r-o-h-i-b-i-t-i-o-n -o-n -I-s-s-u-a-n-c-e -o-f 
-S-e-c-u-r-i-t-i-e-s-.----T-h-e -F-u-n-d -m-a-y -n-o-t -i-s-s-u-e 
-s-t-o-c-k-, -b-o-n-d-s-, -d-e-b-e-n-t-u-r-e-s-, -n-o-t-e-s-, -o-r 
-o-t-h-e-r -s-e-c-u-r-i-t-i-e-s-.

-S-E-C-. -5-. -A-P-P-L-I-C-A-T-I-O-N-S -F-O-R -A-S-S-I-S-T-A-N-C-E-.

    -(-a-) -F-o-r-m -a-n-d -P-r-o-c-e-d-u-r-e-s-.----A-n 
-a-p-p-l-i-c-a-t-i-o-n -f-o-r -a-s-s-i-s-t-a-n-c-e -u-n-d-e-r -t-h-i-s 
-A-c-t -s-h-a-l-l -b-e -s-u-b-m-i-t-t-e-d -b-y -a-n -a-p-p-l-i-c-a-n-t 
-i-n -s-u-c-h -f-o-r-m -a-n-d -i-n -a-c-c-o-r-d-a-n-c-e -w-i-t-h 
-s-u-c-h -p-r-o-c-e-d-u-r-e-s -a-s -t-h-e -B-o-a-r-d -s-h-a-l-l 
-e-s-t-a-b-l-i-s-h-. -T-h-e -B-o-a-r-d -s-h-a-l-l -p-u-b-l-i-s-h 
-r-e-g-u-l-a-t-i-o-n-s -w-i-t-h -r-e-s-p-e-c-t -t-o 
-a-p-p-l-i-c-a-t-i-o-n -r-e-q-u-i-r-e-m-e-n-t-s -a-n-d 
-p-r-o-c-e-d-u-r-e-s -n-o-t -l-a-t-e-r -t-h-a-n -2-1-0 -d-a-y-s 
-a-f-t-e-r -e-n-a-c-t-m-e-n-t -o-f -t-h-i-s -A-c-t-.
    -(-b-) -M-i-n-i-m-u-m -R-e-q-u-i-r-e-m-e-n-t-s-.----T-h-e 
-B-o-a-r-d -s-h-a-l-l -r-e-q-u-i-r-e -t-h-a-t -t-h-e 
-a-p-p-l-i-c-a-t-i-o-n---
            -(-1-) -d-e-m-o-n-s-t-r-a-t-e -t-o -t-h-e 
        -s-a-t-i-s-f-a-c-t-i-o-n -o-f -t-h-e -B-o-a-r-d -t-h-a-t -t-h-e 
        -a-p-p-l-i-c-a-n-t -i-s-, -o-r -u-p-o-n -t-h-e -r-e-c-e-i-p-t 
        -o-f -a -c-h-a-r-t-e-r -w-i-l-l -b-e-, -a -c-o-m-m-u-n-i-t-y 
        -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n -a-s -d-e-f-i-n-e-d -i-n -s-e-c-t-i-o-n 
        -3-(-a-) -o-f -t-h-i-s -A-c-t-;
            -(-2-) -d-e-m-o-n-s-t-r-a-t-e -t-h-a-t -t-h-e 
        -a-p-p-l-i-c-a-n-t -w-i-l-l -s-e-r-v-e---
                    -(-A-) -a -t-a-r-g-e-t-e-d -p-o-p-u-l-a-t-i-o-n-; 
                -o-r
                    -(-B-) -a-n -a-r-e-a -w-h-i-c-h -i-s -a-n 
                -i-n-v-e-s-t-m-e-n-t -a-r-e-a-;
            -(-3-) -i-n -t-h-e -c-a-s-e -o-f -a-n -a-p-p-l-i-c-a-n-t 
        -t-h-a-t -h-a-s -p-r-e-v-i-o-u-s-l-y -r-e-c-e-i-v-e-d 
        -a-s-s-i-s-t-a-n-c-e -u-n-d-e-r -t-h-i-s -A-c-t-, 
        -d-e-m-o-n-s-t-r-a-t-e -t-h-a-t -t-h-e -a-p-p-l-i-c-a-n-t---
                    -(-A-) -h-a-s -s-u-c-c-e-s-s-f-u-l-l-y 
                -c-a-r-r-i-e-d -o-u-t -i-t-s 
                -r-e-s-p-o-n-s-i-b-i-l-i-t-i-e-s -u-n-d-e-r -t-h-i-s 
                -A-c-t-;
                    -(-B-) -h-a-s -b-e-c-o-m-e -o-r -i-s -a-b-o-u-t 
                -t-o -b-e-c-o-m-e -a-n -e-n-t-i-t-y -t-h-a-t -w-i-l-l 
                -n-o-t -b-e -d-e-p-e-n-d-e-n-t -u-p-o-n 
                -a-s-s-i-s-t-a-n-c-e -f-r-o-m -t-h-e -F-u-n-d -f-o-r 
                -c-o-n-t-i-n-u-e-d -v-i-a-b-i-l-i-t-y-; -a-n-d
                    -(-C-) -w-i-l-l -e-x-p-a-n-d -i-t-s 
                -o-p-e-r-a-t-i-o-n-s -i-n-t-o -a -n-e-w 
                -i-n-v-e-s-t-m-e-n-t -a-r-e-a-, -o-f-f-e-r -n-e-w 
                -s-e-r-v-i-c-e-s-, -o-r -w-i-l-l -i-n-c-r-e-a-s-e 
                -t-h-e -v-o-l-u-m-e -o-f -i-t-s -c-u-r-r-e-n-t 
                -b-u-s-i-n-e-s-s-;
            -(-4-) -i-n -t-h-e -c-a-s-e -o-f -a -c-o-m-m-u-n-i-t-y 
        -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n -w-i-t-h -e-x-i-s-t-i-n-g 
        -o-p-e-r-a-t-i-o-n-s-, -d-e-m-o-n-s-t-r-a-t-e -a -r-e-c-o-r-d 
        -o-f -s-u-c-c-e-s-s -o-f -s-e-r-v-i-n-g -i-n-v-e-s-t-m-e-n-t 
        -a-r-e-a-s -o-r -t-a-r-g-e-t-e-d -p-o-p-u-l-a-t-i-o-n-s-;
            -(-5-) -i-n-c-l-u-d-e -a -d-e-t-a-i-l-e-d -a-n-d 
        -c-o-m-p-r-e-h-e-n-s-i-v-e -s-t-r-a-t-e-g-i-c -p-l-a-n -f-o-r 
        -t-h-e -o-r-g-a-n-i-z-a-t-i-o-n -t-h-a-t -c-o-n-t-a-i-n-s---
                    -(-A-) -a -b-u-s-i-n-e-s-s -p-l-a-n -o-f -a-t 
                -l-e-a-s-t -f-i-v-e -y-e-a-r-s -t-h-a-t 
                -d-e-m-o-n-s-t-r-a-t-e-s -t-h-e -a-p-p-l-i-c-a-n-t -i-s 
                -p-r-o-p-e-r-l-y -m-a-n-a-g-e-d -a-n-d -h-a-s -t-h-e 
                -c-a-p-a-c-i-t-y -t-o -f-o-r-m -a-n-d -o-p-e-r-a-t-e -a 
                -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
                -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n -t-h-a-t 
                -i-s-, -o-r -w-i-l-l -b-e-c-o-m-e-, -a-n -e-n-t-i-t-y 
                -t-h-a-t -w-i-l-l -n-o-t -b-e -d-e-p-e-n-d-e-n-t 
                -u-p-o-n -a-s-s-i-s-t-a-n-c-e -f-r-o-m -t-h-e -F-u-n-d 
                -f-o-r -c-o-n-t-i-n-u-e-d -v-i-a-b-i-l-i-t-y-;
                    -(-B-) -a -s-t-a-t-e-m-e-n-t -t-h-a-t -t-h-e 
                -a-p-p-l-i-c-a-n-t -h-a-s-, -o-r -w-i-l-l -h-a-v-e-, 
                -i-n -i-t-s -c-h-a-r-t-e-r -o-r -o-t-h-e-r 
                -g-o-v-e-r-n-i-n-g -d-o-c-u-m-e-n-t-s -a -p-r-i-m-a-r-y 
                -c-o-m-m-i-t-m-e-n-t -t-o -c-o-m-m-u-n-i-t-y 
                -d-e-v-e-l-o-p-m-e-n-t-, -o-r -o-t-h-e-r 
                -e-v-i-d-e-n-c-e -o-f -a -p-r-i-o-r -h-i-s-t-o-r-y 
                -a-n-d -a -c-o-n-t-i-n-u-i-n-g -a-f-f-i-r-m-a-t-i-o-n 
                -o-f -a -p-r-i-m-a-r-y -c-o-m-m-i-t-m-e-n-t -o-f 
                -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t-;
                    -(-C-) -a-n -a-n-a-l-y-s-i-s -o-f -t-h-e -n-e-e-d-s 
                -o-f -t-h-e -i-n-v-e-s-t-m-e-n-t -a-r-e-a -o-r 
                -t-a-r-g-e-t-e-d -p-o-p-u-l-a-t-i-o-n-s -a-n-d -a 
                -s-t-r-a-t-e-g-y -f-o-r -h-o-w -t-h-e 
                -a-p-p-l-i-c-a-n-t -w-i-l-l -a-t-t-e-m-p-t -t-o 
                -m-e-e-t -t-h-o-s-e -n-e-e-d-s-;
                    -(-D-) -a -p-l-a-n -t-o -c-o-o-r-d-i-n-a-t-e -u-s-e 
                -o-f -a-s-s-i-s-t-a-n-c-e -f-r-o-m -t-h-e -F-u-n-d 
                -w-i-t-h -e-x-i-s-t-i-n-g -F-e-d-e-r-a-l-, 
                -g-o-v-e-r-n-m-e-n-t---s-p-o-n-s-o-r-e-d 
                -e-n-t-e-r-p-r-i-s-e-, -a-n-d -S-t-a-t-e -a-n-d 
                -l-o-c-a-l -a-s-s-i-s-t-a-n-c-e -p-r-o-g-r-a-m-s-, 
                -a-n-d -p-r-i-v-a-t-e -s-e-c-t-o-r -f-i-n-a-n-c-i-a-l 
                -s-e-r-v-i-c-e-s-;
                    -(-E-) -a -s-t-a-t-e-m-e-n-t -t-h-a-t -t-h-e 
                -p-r-o-p-o-s-e-d -a-c-t-i-v-i-t-i-e-s -o-f -t-h-e 
                -a-p-p-l-i-c-a-n-t -a-r-e -c-o-n-s-i-s-t-e-n-t -w-i-t-h 
                -e-x-i-s-t-i-n-g -e-c-o-n-o-m-i-c-, -c-o-m-m-u-n-i-t-y 
                -a-n-d -h-o-u-s-i-n-g -d-e-v-e-l-o-p-m-e-n-t -p-l-a-n-s 
                -a-d-o-p-t-e-d -b-y -o-r -a-p-p-l-i-c-a-b-l-e -t-o 
                -t-h-e -i-n-v-e-s-t-m-e-n-t -a-r-e-a-;
                    -(-F-) -a -d-e-s-c-r-i-p-t-i-o-n -o-f -h-o-w -t-h-e 
                -a-p-p-l-i-c-a-n-t -w-i-l-l -a-f-f-i-l-i-a-t-e-, 
                -n-e-t-w-o-r-k-, -o-r -o-t-h-e-r-w-i-s-e 
                -c-o-o-r-d-i-n-a-t-e -w-i-t-h -a -f-u-l-l -r-a-n-g-e 
                -o-f -c-o-m-m-u-n-i-t-y -o-r-g-a-n-i-z-a-t-i-o-n-s 
                -a-n-d -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-s 
                -w-h-i-c-h -p-r-o-v-i-d-e-, -o-r -w-i-l-l 
                -p-r-o-v-i-d-e-, -c-a-p-i-t-a-l-, -c-r-e-d-i-t-, -o-r 
                -s-e-c-o-n-d-a-r-y -m-a-r-k-e-t-s -i-n -o-r-d-e-r -t-o 
                -a-s-s-u-r-e -t-h-a-t -b-a-n-k-i-n-g-, -e-c-o-n-o-m-i-c 
                -d-e-v-e-l-o-p-m-e-n-t-, -i-n-v-e-s-t-m-e-n-t-, 
                -a-f-f-o-r-d-a-b-l-e -h-o-u-s-i-n-g-, -a-n-d -o-t-h-e-r 
                -r-e-l-a-t-e-d -s-e-r-v-i-c-e-s -w-i-l-l -b-e 
                -a-v-a-i-l-a-b-l-e -w-i-t-h-i-n -t-h-e 
                -i-n-v-e-s-t-m-e-n-t -a-r-e-a -o-r -t-o 
                -t-a-r-g-e-t-e-d -p-o-p-u-l-a-t-i-o-n-s-; -a-n-d
                    -(-G-) -s-u-c-h -o-t-h-e-r -i-n-f-o-r-m-a-t-i-o-n 
                -a-s -t-h-e -B-o-a-r-d -d-e-e-m-s 
                -a-p-p-r-o-p-r-i-a-t-e -f-o-r -i-n-c-l-u-s-i-o-n -i-n 
                -t-h-e -s-t-r-a-t-e-g-i-c -p-l-a-n-;
            -(-6-) -d-e-m-o-n-s-t-r-a-t-e -t-h-a-t -t-h-e 
        -a-p-p-l-i-c-a-n-t -w-i-l-l -c-a-r-r-y -o-n -i-t-s 
        -a-c-t-i-v-i-t-i-e-s -c-o-n-s-i-s-t-e-n-t -w-i-t-h -t-h-e 
        -p-u-r-p-o-s-e-s -o-f -t-h-i-s -A-c-t -w-i-t-h-i-n -t-h-e 
        -i-n-v-e-s-t-m-e-n-t -a-r-e-a -o-r -w-i-t-h -r-e-s-p-e-c-t -t-o 
        -a -t-a-r-g-e-t-e-d -p-o-p-u-l-a-t-i-o-n-;
            -(-7-) -i-n-c-l-u-d-e -a -d-e-t-a-i-l-e-d -a-n-d 
        -s-p-e-c-i-f-i-c -s-t-a-t-e-m-e-n-t -o-f -a-p-p-l-i-c-a-n-t-'-s 
        -p-l-a-n-s -a-n-d -l-i-k-e-l-y -s-o-u-r-c-e-s -o-f -f-u-n-d-s 
        -t-o -m-a-t-c-h -t-h-e -a-m-o-u-n-t -o-f -a-s-s-i-s-t-a-n-c-e 
        -f-r-o-m -t-h-e -F-u-n-d -w-i-t-h -f-u-n-d-s -f-r-o-m 
        -p-r-i-v-a-t-e -s-o-u-r-c-e-s -i-n -a-c-c-o-r-d-a-n-c-e 
        -w-i-t-h -t-h-e -r-e-q-u-i-r-e-m-e-n-t-s -o-f -s-e-c-t-i-o-n 
        -7-(-d-) -o-f -t-h-i-s -A-c-t-; -a-n-d
            -(-8-) -i-n-c-l-u-d-e -s-u-c-h -o-t-h-e-r 
        -i-n-f-o-r-m-a-t-i-o-n -a-s -t-h-e -B-o-a-r-d -m-a-y 
        -r-e-q-u-i-r-e-.
    -(-c-) -P-r-e---A-p-p-l-i-c-a-t-i-o-n -O-u-t-r-e-a-c-h 
-P-r-o-g-r-a-m-.----T-h-e -F-u-n-d -s-h-a-l-l -p-r-o-v-i-d-e -f-o-r 
-a-n -o-u-t-r-e-a-c-h -p-r-o-g-r-a-m -t-o -i-d-e-n-t-i-f-y -a-n-d 
-p-r-o-v-i-d-e -i-n-f-o-r-m-a-t-i-o-n -t-o -p-o-t-e-n-t-i-a-l 
-a-p-p-l-i-c-a-n-t-s -a-n-d -t-o -i-n-c-r-e-a-s-e -t-h-e 
-c-a-p-a-c-i-t-y -o-f -p-o-t-e-n-t-i-a-l -a-p-p-l-i-c-a-n-t-s -t-o 
-m-e-e-t -t-h-e -a-p-p-l-i-c-a-t-i-o-n -a-n-d -o-t-h-e-r 
-r-e-q-u-i-r-e-m-e-n-t-s -o-f -t-h-i-s -A-c-t-.

-S-E-C-. -6-. -S-E-L-E-C-T-I-O-N -O-F -I-N-S-T-I-T-U-T-I-O-N-S-.

    -(-a-) -S-e-l-e-c-t-i-o-n -C-r-i-t-e-r-i-a-.----T-h-e -B-o-a-r-d 
-s-h-a-l-l-, -i-n -i-t-s -d-i-s-c-r-e-t-i-o-n-, -s-e-l-e-c-t 
-a-p-p-l-i-c-a-t-i-o-n-s -t-h-a-t -m-e-e-t -t-h-e 
-r-e-q-u-i-r-e-m-e-n-t-s -o-f -s-e-c-t-i-o-n -5 -o-f -t-h-i-s -A-c-t 
-a-n-d -a-w-a-r-d -a-s-s-i-s-t-a-n-c-e -f-r-o-m -t-h-e -F-u-n-d -i-n 
-a-c-c-o-r-d-a-n-c-e -w-i-t-h -s-e-c-t-i-o-n -7 -o-f -t-h-i-s -A-c-t-. 
-I-n -s-e-l-e-c-t-i-n-g -a-p-p-l-i-c-a-t-i-o-n-s-, -t-h-e -B-o-a-r-d 
-s-h-a-l-l -c-o-n-s-i-d-e-r -a-p-p-l-i-c-a-t-i-o-n-s -b-a-s-e-d -o-n-, 
-b-u-t -n-o-t -l-i-m-i-t-e-d -t-o---
            -(-1-) -t-h-e -l-i-k-e-l-i-h-o-o-d -o-f -s-u-c-c-e-s-s -o-f 
        -t-h-e -a-p-p-l-i-c-a-n-t -i-n -f-o-r-m-i-n-g -a-n-d 
        -o-p-e-r-a-t-i-n-g -a -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
        -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-;
            -(-2-) -t-h-e -r-a-n-g-e -a-n-d 
        -c-o-m-p-r-e-h-e-n-s-i-v-e-n-e-s-s -o-f -t-h-e -c-a-p-i-t-a-l-, 
        -c-r-e-d-i-t-, -a-n-d -d-e-v-e-l-o-p-m-e-n-t -s-e-r-v-i-c-e-s 
        -t-o -b-e -p-r-o-v-i-d-e-d -b-y -t-h-e -a-p-p-l-i-c-a-n-t-;
            -(-3-) -t-h-e -e-x-t-e-n-t -o-f -t-h-e -n-e-e-d-, -a-s 
        -m-e-a-s-u-r-e-d -b-y -o-b-j-e-c-t-i-v-e -c-r-i-t-e-r-i-a -o-f 
        -d-i-s-t-r-e-s-s-, -w-i-t-h-i-n -t-h-e -i-n-v-e-s-t-m-e-n-t 
        -a-r-e-a-s -o-r -t-a-r-g-e-t-e-d -p-o-p-u-l-a-t-i-o-n-s -f-o-r 
        -t-h-e -t-y-p-e-s -o-f -a-c-t-i-v-i-t-i-e-s -p-r-o-p-o-s-e-d 
        -b-y -t-h-e -a-p-p-l-i-c-a-n-t-;
            -(-4-) -t-h-e -l-i-k-e-l-i-h-o-o-d -t-h-a-t -t-h-e 
        -p-r-o-p-o-s-e-d -a-c-t-i-v-i-t-i-e-s -w-i-l-l -b-e-n-e-f-i-t 
        -a -s-i-g-n-i-f-i-c-a-n-t -p-o-r-t-i-o-n -o-f -t-h-e 
        -i-n-v-e-s-t-m-e-n-t -a-r-e-a-s -o-r -t-a-r-g-e-t-e-d 
        -p-o-p-u-l-a-t-i-o-n-s -o-r-, -i-n -t-h-e -c-a-s-e -o-f -a 
        -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n -w-i-t-h -e-x-i-s-t-i-n-g 
        -o-p-e-r-a-t-i-o-n-s-, -e-v-i-d-e-n-c-e -o-f -a -r-e-c-o-r-d 
        -o-f -s-u-c-c-e-s-s -i-n -s-e-r-v-i-n-g -i-n-v-e-s-t-m-e-n-t 
        -a-r-e-a-s -o-r -t-a-r-g-e-t-e-d -p-o-p-u-l-a-t-i-o-n-s-;
            -(-5-) -t-h-e -e-x-t-e-n-t -t-o -w-h-i-c-h -t-h-e 
        -a-p-p-l-i-c-a-n-t -w-i-l-l -c-o-n-c-e-n-t-r-a-t-e -i-t-s 
        -a-c-t-i-v-i-t-i-e-s -o-n -s-e-r-v-i-n-g -l-o-w -a-n-d -v-e-r-y 
        -l-o-w---i-n-c-o-m-e -f-a-m-i-l-i-e-s-;
            -(-6-) -t-h-e -e-v-i-d-e-n-c-e -o-f -t-h-e -e-x-t-e-n-t 
        -o-f -a -b-r-o-a-d -c-r-o-s-s---s-e-c-t-i-o-n -o-f 
        -s-u-p-p-o-r-t -f-r-o-m -t-h-e -i-n-v-e-s-t-m-e-n-t -a-r-e-a-s 
        -o-r -t-a-r-g-e-t-e-d -p-o-p-u-l-a-t-i-o-n-s-;
            -(-7-) -t-h-e -e-x-p-e-r-i-e-n-c-e -a-n-d 
        -b-a-c-k-g-r-o-u-n-d -o-f -t-h-e -p-r-o-p-o-s-e-d 
        -m-a-n-a-g-e-m-e-n-t -t-e-a-m-;
            -(-8-) -t-h-e -a-m-o-u-n-t -o-f -l-e-g-a-l-l-y 
        -e-n-f-o-r-c-e-a-b-l-e -c-o-m-m-i-t-m-e-n-t-s 
        -a-v-a-i-l-a-b-l-e -a-t -t-h-e -t-i-m-e -o-f 
        -a-p-p-l-i-c-a-t-i-o-n -t-o -m-e-e-t -o-r -e-x-c-e-e-d -t-h-e 
        -m-a-t-c-h-i-n-g -r-e-q-u-i-r-e-m-e-n-t-s -u-n-d-e-r 
        -s-e-c-t-i-o-n -7-(-d-) -o-f -t-h-i-s -A-c-t -a-n-d -t-h-e 
        -s-t-r-e-n-g-t-h -o-f -t-h-e -p-l-a-n -f-o-r -r-a-i-s-i-n-g 
        -t-h-e -b-a-l-a-n-c-e -o-f -t-h-e -m-a-t-c-h-;
            -(-9-) -i-n -t-h-e -c-a-s-e -o-f -a-p-p-l-i-c-a-n-t-s 
        -t-h-a-t -h-a-v-e -p-r-e-v-i-o-u-s-l-y -r-e-c-e-i-v-e-d 
        -a-s-s-i-s-t-a-n-c-e -p-u-r-s-u-a-n-t -t-o -t-h-i-s -A-c-t-, 
        -t-h-e -e-x-t-e-n-t -t-o -w-h-i-c-h -t-h-e-y -h-a-v-e -m-e-t 
        -o-r -e-x-c-e-e-d-e-d -t-h-e-i-r -p-e-r-f-o-r-m-a-n-c-e 
        -g-o-a-l-s-;
            -(-1-0-) -t-h-e -e-x-t-e-n-t -t-o -w-h-i-c-h -t-h-e 
        -p-r-o-p-o-s-e-d -a-c-t-i-v-i-t-i-e-s -w-i-l-l -e-x-p-a-n-d 
        -t-h-e -e-m-p-l-o-y-m-e-n-t -b-a-s-e -w-i-t-h-i-n -t-h-e 
        -i-n-v-e-s-t-m-e-n-t -a-r-e-a-s -o-r -t-h-e -t-a-r-g-e-t-e-d 
        -p-o-p-u-l-a-t-i-o-n-s-;
            -(-1-1-) -t-h-e -e-x-t-e-n-t -t-o -w-h-i-c-h -t-h-e 
        -a-p-p-l-i-c-a-n-t -i-s-, -o-r -w-i-l-l -b-e-, 
        -c-o-m-m-u-n-i-t-y---o-w-n-e-d -o-r -c-o-m-m-u-n-i-t-y--
        -g-o-v-e-r-n-e-d-;
            -(-1-2-) -w-h-e-t-h-e-r -t-h-e -a-p-p-l-i-c-a-n-t -i-s-, 
        -o-r -w-i-l-l -b-e-c-o-m-e-, -a-n -i-n-s-u-r-e-d 
        -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n-;
            -(-1-3-) -w-h-e-t-h-e-r -t-h-e -a-p-p-l-i-c-a-n-t -i-s-, 
        -o-r -w-i-l-l -b-e -l-o-c-a-t-e-d-, -i-n -a-n 
        -e-m-p-o-w-e-r-m-e-n-t -z-o-n-e -o-r -e-n-t-e-r-p-r-i-s-e 
        -c-o-m-m-u-n-i-t-y -d-e-s-i-g-n-a-t-e-d -u-n-d-e-r 
        -s-e-c-t-i-o-n -1-3-9-1 -o-f -t-h-e -I-n-t-e-r-n-a-l 
        -R-e-v-e-n-u-e -C-o-d-e -o-f -1-9-8-6-;
            -(-1-4-) -i-n -t-h-e -c-a-s-e -o-f -a-n 
        -i-n-s-t-i-t-u-t-i-o-n -t-h-a-t -i-s -n-o-t -a-n -i-n-s-u-r-e-d 
        -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n-, -t-h-e -e-x-t-e-n-t -t-o -w-h-i-c-h 
        -t-h-e -i-n-s-t-i-t-u-t-i-o-n -h-a-s -o-r -w-i-l-l -h-a-v-e 
        -t-h-e -a-b-i-l-i-t-y -t-o -i-n-c-r-e-a-s-e -i-t-s 
        -r-e-s-o-u-r-c-e-s -t-h-r-o-u-g-h -a-f-f-i-l-i-a-t-i-o-n 
        -w-i-t-h -a -s-e-c-o-n-d-a-r-y -m-a-r-k-e-t-, -i-n-s-u-r-e-d 
        -d-e-p-o-s-i-t-o-r-y -i-n-s-t-i-t-u-t-i-o-n-, -o-r -o-t-h-e-r 
        -f-i-n-a-n-c-i-a-l -i-n-t-e-r-m-e-d-i-a-r-y -i-n -o-r-d-e-r 
        -t-o -m-u-l-t-i-p-l-y -t-h-e -a-m-o-u-n-t -o-f -c-a-p-i-t-a-l 
        -o-r -c-r-e-d-i-t -a-v-a-i-l-a-b-l-e -f-o-r -c-o-m-m-u-n-i-t-y 
        -d-e-v-e-l-o-p-m-e-n-t-;
            -(-1-5-) -i-n -t-h-e -c-a-s-e -o-f -a-n -i-n-s-u-r-e-d 
        -d-e-p-o-s-i-t-o-r-y -i-n-s-t-i-t-u-t-i-o-n -o-r -i-n-s-u-r-e-d 
        -c-r-e-d-i-t -u-n-i-o-n -a-p-p-l-i-c-a-n-t-, -w-h-e-t-h-e-r 
        -t-h-e -i-n-s-t-i-t-u-t-i-o-n---
                    -(-A-) -h-a-s -o-r -w-i-l-l -h-a-v-e -a 
                -s-u-b-s-t-a-n-t-i-a-l -a-f-f-i-l-i-a-t-i-o-n -w-i-t-h 
                -a-n -e-n-t-i-t-y -o-r -n-e-t-w-o-r-k -o-f 
                -e-n-t-i-t-i-e-s -t-h-a-t -a-r-e -c-o-m-m-u-n-i-t-y 
                -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
                -i-n-s-t-i-t-u-t-i-o-n-s-; -a-n-d
                    -(-B-) -h-a-s -a -c-o-m-p-r-e-h-e-n-s-i-v-e 
                -p-l-a-n -f-o-r -p-r-o-v-i-d-i-n-g -m-e-a-n-i-n-g-f-u-l 
                -f-i-n-a-n-c-i-a-l -a-s-s-i-s-t-a-n-c-e -t-o -s-u-c-h 
                -a-n -e-n-t-i-t-y -o-r -n-e-t-w-o-r-k -o-f 
                -e-n-t-i-t-i-e-s-; -a-n-d
            -(-1-6-) -o-t-h-e-r -f-a-c-t-o-r-s -d-e-e-m-e-d 
        -a-p-p-r-o-p-r-i-a-t-e -b-y -t-h-e -B-o-a-r-d-.
    -(-b-) -G-e-o-g-r-a-p-h-i-c -D-i-v-e-r-s-i-t-y-.----I-n 
-a-d-d-i-t-i-o-n -t-o -t-h-e -a-b-o-v-e-, -i-n -m-a-k-i-n-g -i-t-s 
-s-e-l-e-c-t-i-o-n-s-, -t-h-e -B-o-a-r-d -s-h-a-l-l -s-e-e-k -t-o 
-f-u-n-d -a -g-e-o-g-r-a-p-h-i-c-a-l-l-y -d-i-v-e-r-s-e -g-r-o-u-p -o-f 
-a-p-p-l-i-c-a-n-t-s-, -w-h-i-c-h -s-h-a-l-l -i-n-c-l-u-d-e 
-a-p-p-l-i-c-a-n-t-s -f-r-o-m -n-o-n-m-e-t-r-o-p-o-l-i-t-a-n -a-n-d 
-r-u-r-a-l -a-r-e-a-s-.
    -(-c-) -P-u-b-l-i-c-a-t-i-o-n -R-e-q-u-i-r-e-m-e-n-t-.----T-h-e 
-B-o-a-r-d -s-h-a-l-l -p-u-b-l-i-s-h -r-e-g-u-l-a-t-i-o-n-s -w-i-t-h 
-r-e-s-p-e-c-t -t-o -i-t-s -s-e-l-e-c-t-i-o-n -c-r-i-t-e-r-i-a -n-o-t 
-l-a-t-e-r -t-h-a-n -2-1-0 -d-a-y-s -a-f-t-e-r -t-h-e -d-a-t-e -o-f 
-e-n-a-c-t-m-e-n-t -o-f -t-h-i-s -A-c-t-.

-S-E-C-. -7-. -A-S-S-I-S-T-A-N-C-E -P-R-O-V-I-D-E-D -B-Y -T-H-E 
              -F-U-N-D-.

    -(-a-) -P-u-r-p-o-s-e -o-f -A-s-s-i-s-t-a-n-c-e-.---
            -(-1-) -T-h-e -F-u-n-d -s-h-a-l-l -w-o-r-k -t-o 
        -p-r-o-m-o-t-e -a-n -e-n-v-i-r-o-n-m-e-n-t -h-o-s-p-i-t-a-b-l-e 
        -t-o -b-u-s-i-n-e-s-s -f-o-r-m-a-t-i-o-n-, -e-c-o-n-o-m-i-c 
        -g-r-o-w-t-h-, -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t-, 
        -a-n-d -a-f-f-o-r-d-a-b-l-e -h-o-u-s-i-n-g -i-n 
        -d-i-s-t-r-e-s-s-e-d -c-o-m-m-u-n-i-t-i-e-s-. -T-h-e -F-u-n-d 
        -s-h-a-l-l -c-o-o-r-d-i-n-a-t-e -i-t-s -a-c-t-i-v-i-t-i-e-s 
        -w-i-t-h -e-x-i-s-t-i-n-g -F-e-d-e-r-a-l -a-n-d -o-t-h-e-r 
        -c-o-m-m-u-n-i-t-y -a-n-d -e-c-o-n-o-m-i-c 
        -d-e-v-e-l-o-p-m-e-n-t -p-r-o-g-r-a-m-s-.
            -(-2-) -A-s-s-i-s-t-a-n-c-e -m-a-y -b-e -p-r-o-v-i-d-e-d 
        -t-o -a-n -e-x-i-s-t-i-n-g -q-u-a-l-i-f-i-e-d 
        -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n -t-o -e-x-p-a-n-d -i-t-s 
        -a-c-t-i-v-i-t-i-e-s -t-o -s-e-r-v-e -i-n-v-e-s-t-m-e-n-t 
        -a-r-e-a-s -o-r -t-a-r-g-e-t-e-d -p-o-p-u-l-a-t-i-o-n-s -n-o-t 
        -c-u-r-r-e-n-t-l-y -s-e-r-v-e-d -b-y -a-n-o-t-h-e-r 
        -q-u-a-l-i-f-i-e-d -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
        -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n -r-e-c-e-i-v-i-n-g 
        -a-s-s-i-s-t-a-n-c-e -u-n-d-e-r -t-h-i-s -s-e-c-t-i-o-n -o-r 
        -t-o -e-x-p-a-n-d -t-h-e -v-o-l-u-m-e -o-f -i-t-s 
        -a-c-t-i-v-i-t-i-e-s -c-o-n-s-i-s-t-e-n-t -w-i-t-h -t-h-e 
        -p-u-r-p-o-s-e-s -o-f -t-h-i-s -A-c-t-, -o-r -t-o -f-o-r-m -a 
        -n-e-w -e-n-t-i-t-y -t-o -u-n-d-e-r-t-a-k-e 
        -a-c-t-i-v-i-t-i-e-s -c-o-n-s-i-s-t-e-n-t -w-i-t-h -t-h-e 
        -p-u-r-p-o-s-e-s -o-f -t-h-i-s -A-c-t-, -o-r -t-o -a-s-s-i-s-t 
        -a-n -e-x-i-s-t-i-n-g -e-n-t-i-t-y -t-o -m-o-d-i-f-y -i-t-s 
        -s-t-r-u-c-t-u-r-e -o-r -a-c-t-i-v-i-t-i-e-s -i-n -o-r-d-e-r 
        -t-o -u-n-d-e-r-t-a-k-e -a-c-t-i-v-i-t-i-e-s 
        -c-o-n-s-i-s-t-e-n-t -w-i-t-h -t-h-e -p-u-r-p-o-s-e-s -o-f 
        -t-h-i-s -A-c-t-.
    -(-b-) -T-y-p-e-s -o-f -A-s-s-i-s-t-a-n-c-e-.---
            -(-1-) -I-n -g-e-n-e-r-a-l-.----T-h-e -F-u-n-d -m-a-y 
        -p-r-o-v-i-d-e -f-i-n-a-n-c-i-a-l -a-s-s-i-s-t-a-n-c-e -t-o 
        -q-u-a-l-i-f-i-e-d -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
        -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-s -t-h-r-o-u-g-h 
        -e-q-u-i-t-y -i-n-v-e-s-t-m-e-n-t-s-, -l-o-a-n-s-, 
        -d-e-p-o-s-i-t-s-, -m-e-m-b-e-r-s-h-i-p -s-h-a-r-e-s-, -a-n-d 
        -g-r-a-n-t-s-. -T-h-e -F-u-n-d -m-a-y -a-l-s-o -p-r-o-v-i-d-e 
        -t-e-c-h-n-i-c-a-l -a-s-s-i-s-t-a-n-c-e-, -i-n-c-l-u-d-i-n-g 
        -t-r-a-i-n-i-n-g-, -a-n-d -g-r-a-n-t-s -f-o-r 
        -t-e-c-h-n-i-c-a-l -a-s-s-i-s-t-a-n-c-e -t-o -q-u-a-l-i-f-i-e-d 
        -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n-s-. -T-h-e -a-l-l-o-c-a-t-i-o-n -o-f 
        -a-w-a-r-d-s -o-f -a-s-s-i-s-t-a-n-c-e -b-e-t-w-e-e-n 
        -i-n-s-u-r-e-d -a-n-d -u-n-i-n-s-u-r-e-d -c-o-m-m-u-n-i-t-y 
        -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n-s -s-h-a-l-l -b-e -i-n -t-h-e 
        -d-i-s-c-r-e-t-i-o-n -o-f -t-h-e -B-o-a-r-d-, -p-r-o-v-i-d-e-d 
        -t-h-a-t -d-u-e -c-o-n-s-i-d-e-r-a-t-i-o-n -s-h-a-l-l -b-e 
        -g-i-v-e-n -t-o -t-h-e -a-l-l-o-c-a-t-i-o-n -o-f -f-u-n-d-s 
        -t-o -i-n-s-u-r-e-d -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
        -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-s-.
            -(-2-) -F-i-n-a-n-c-i-a-l -a-s-s-i-s-t-a-n-c-e-.----T-h-e 
        -f-u-n-d -s-h-a-l-l -s-t-r-u-c-t-u-r-e -f-i-n-a-n-c-i-a-l 
        -a-s-s-i-s-t-a-n-c-e -t-o -a -q-u-a-l-i-f-i-e-d 
        -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n -i-n -s-u-c-h -a -m-a-n-n-e-r -t-h-a-t 
        -i-t -d-o-e-s -n-o-t -o-w-n -m-o-r-e -t-h-a-n -5-0 
        -p-e-r-c-e-n-t -o-f -t-h-e -e-q-u-i-t-y -o-f -s-u-c-h 
        -i-n-s-t-i-t-u-t-i-o-n -a-n-d -d-o-e-s -n-o-t -c-o-n-t-r-o-l 
        -t-h-e -o-p-e-r-a-t-i-o-n-s -o-f -s-u-c-h 
        -i-n-s-t-i-t-u-t-i-o-n-. -T-h-e -F-u-n-d -w-i-l-l -n-o-t -b-e 
        -d-e-e-m-e-d -t-o -c-o-n-t-r-o-l -s-u-c-h 
        -i-n-s-t-i-t-u-t-i-o-n -f-o-r -t-h-e -p-u-r-p-o-s-e-s -o-f 
        -a-p-p-l-i-c-a-b-l-e -l-a-w-s-. -W-i-t-h -r-e-s-p-e-c-t -t-o 
        -e-q-u-i-t-y -i-n-v-e-s-t-m-e-n-t-s-, -t-h-e -F-u-n-d 
        -s-h-a-l-l -h-o-l-d -o-n-l-y -t-r-a-n-s-f-e-r-a-b-l-e-, 
        -n-o-n-v-o-t-i-n-g -i-n-v-e-s-t-m-e-n-t-s-. -S-u-c-h 
        -e-q-u-i-t-y -i-n-v-e-s-t-m-e-n-t-s -m-a-y -p-r-o-v-i-d-e 
        -f-o-r -c-o-n-v-e-r-t-i-b-i-l-i-t-y -t-o -v-o-t-i-n-g 
        -s-t-o-c-k -u-p-o-n -t-r-a-n-s-f-e-r -b-y -t-h-e -F-u-n-d-.
            -(-3-) -D-e-p-o-s-i-t-s-.----N-o-t-w-i-t-h-s-t-a-n-d-i-n-g 
        -a-n-y -o-t-h-e-r -p-r-o-v-i-s-i-o-n -o-f -l-a-w-, 
        -d-e-p-o-s-i-t-s -m-a-d-e -p-u-r-s-u-a-n-t -t-o -t-h-i-s 
        -s-e-c-t-i-o-n -i-n -q-u-a-l-i-f-i-e-d -i-n-s-u-r-e-d 
        -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n-s -s-h-a-l-l -n-o-t -b-e -s-u-b-j-e-c-t 
        -t-o -a-n-y -r-e-q-u-i-r-e-m-e-n-t -f-o-r -c-o-l-l-a-t-e-r-a-l 
        -o-r -s-e-c-u-r-i-t-y-.
            -(-4-) -L-i-m-i-t-a-t-i-o-n-s -o-n 
        -o-b-l-i-g-a-t-i-o-n-s-.----D-i-r-e-c-t -l-o-a-n 
        -o-b-l-i-g-a-t-i-o-n-s -m-a-y -b-e -i-n-c-u-r-r-e-d -o-n-l-y 
        -t-o -t-h-e -e-x-t-e-n-t -t-h-a-t -a-p-p-r-o-p-r-i-a-t-i-o-n-s 
        -o-f -b-u-d-g-e-t -a-u-t-h-o-r-i-t-y -t-o -c-o-v-e-r -t-h-e-i-r 
        -c-o-s-t-s-, -a-s -d-e-f-i-n-e-d -i-n -s-e-c-t-i-o-n -5-0-2 
        -o-f -t-h-e -C-o-n-g-r-e-s-s-i-o-n-a-l -B-u-d-g-e-t -A-c-t -o-f 
        -1-9-7-4-, -a-r-e -m-a-d-e -i-n -a-d-v-a-n-c-e-.
    -(-c-) -P-u-r-p-o-s-e -o-f -F-i-n-a-n-c-i-a-l 
-A-s-s-i-s-t-a-n-c-e-.----F-i-n-a-n-c-i-a-l -a-s-s-i-s-t-a-n-c-e 
-m-a-d-e -a-v-a-i-l-a-b-l-e -u-n-d-e-r -t-h-i-s -A-c-t -m-a-y -b-e 
-u-s-e-d -b-y -a-s-s-i-s-t-e-d -i-n-s-t-i-t-u-t-i-o-n-s -t-o 
-d-e-v-e-l-o-p -o-r -s-u-p-p-o-r-t---
            -(-1-) -c-o-m-m-e-r-c-i-a-l -f-a-c-i-l-i-t-i-e-s -t-h-a-t 
        -e-n-h-a-n-c-e -r-e-v-i-t-a-l-i-z-a-t-i-o-n-, 
        -c-o-m-m-u-n-i-t-y -s-t-a-b-i-l-i-t-y-, -o-r -j-o-b 
        -c-r-e-a-t-i-o-n -a-n-d -r-e-t-e-n-t-i-o-n -e-f-f-o-r-t-s-;
            -(-2-) -b-u-s-i-n-e-s-s -c-r-e-a-t-i-o-n -a-n-d 
        -e-x-p-a-n-s-i-o-n -e-f-f-o-r-t-s -t-h-a-t---
                    -(-A-) -c-r-e-a-t-e -o-r -r-e-t-a-i-n -j-o-b-s 
                -f-o-r -l-o-w---i-n-c-o-m-e -p-e-o-p-l-e-;
                    -(-B-) -e-n-h-a-n-c-e -t-h-e 
                -a-v-a-i-l-a-b-i-l-i-t-y -o-f -p-r-o-d-u-c-t-s -a-n-d 
                -s-e-r-v-i-c-e-s -t-o -l-o-w---i-n-c-o-m-e 
                -p-e-o-p-l-e-; -o-r
                    -(-C-) -c-r-e-a-t-e -o-r -r-e-t-a-i-n 
                -b-u-s-i-n-e-s-s-e-s -o-w-n-e-d -b-y -l-o-w--
                -i-n-c-o-m-e -p-e-o-p-l-e -o-r -r-e-s-i-d-e-n-t-s -o-f 
                -a -t-a-r-g-e-t-e-d -a-r-e-a-;
            -(-3-) -c-o-m-m-u-n-i-t-y -f-a-c-i-l-i-t-i-e-s -t-h-a-t 
        -p-r-o-v-i-d-e -b-e-n-e-f-i-t-s -t-o -l-o-w---i-n-c-o-m-e 
        -p-e-o-p-l-e -o-r -e-n-h-a-n-c-e -c-o-m-m-u-n-i-t-y 
        -s-t-a-b-i-l-i-t-y-;
            -(-4-) -t-h-e -p-r-o-v-i-s-i-o-n -o-f -b-a-s-i-c 
        -f-i-n-a-n-c-i-a-l -s-e-r-v-i-c-e-s -t-o -l-o-w---i-n-c-o-m-e 
        -p-e-o-p-l-e -o-r -r-e-s-i-d-e-n-t-s -o-f -a -t-a-r-g-e-t-e-d 
        -a-r-e-a-;
            -(-5-) -t-h-e -p-r-o-v-i-s-i-o-n -o-f 
        -d-e-v-e-l-o-p-m-e-n-t -s-e-r-v-i-c-e-s-;
            -(-6-) -h-o-m-e -o-w-n-e-r-s-h-i-p 
        -o-p-p-o-r-t-u-n-i-t-i-e-s -t-h-a-t -a-r-e -a-f-f-o-r-d-a-b-l-e 
        -t-o -l-o-w---i-n-c-o-m-e -h-o-u-s-e-h-o-l-d-s-;
            -(-7-) -r-e-n-t-a-l -h-o-u-s-i-n-g -t-h-a-t -i-s 
        -p-r-i-n-c-i-p-a-l-l-y -a-f-f-o-r-d-a-b-l-e -t-o -l-o-w--
        -i-n-c-o-m-e -h-o-u-s-e-h-o-l-d-s-; -a-n-d
            -(-8-) -o-t-h-e-r -a-c-t-i-v-i-t-i-e-s -d-e-e-m-e-d 
        -a-p-p-r-o-p-r-i-a-t-e -b-y -t-h-e -F-u-n-d-.
    -(-d-) -A-m-o-u-n-t -o-f -A-s-s-i-s-t-a-n-c-e-.----T-h-e -F-u-n-d 
-m-a-y -p-r-o-v-i-d-e -u-p -t-o -$-5-,-0-0-0-,-0-0-0 -o-f 
-a-s-s-i-s-t-a-n-c-e -p-e-r -a-p-p-l-i-c-a-t-i-o-n -t-o -a-n-y -o-n-e 
-q-u-a-l-i-f-i-e-d -i-n-s-u-r-e-d -c-o-m-m-u-n-i-t-y 
-d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n -a-n-d 
-u-p -t-o -$-2-,-0-0-0-,-0-0-0 -p-e-r -a-p-p-l-i-c-a-t-i-o-n -t-o 
-a-n-y -o-t-h-e-r -q-u-a-l-i-f-i-e-d -c-o-m-m-u-n-i-t-y 
-d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-. 
-T-h-e -F-u-n-d -s-h-a-l-l -h-a-v-e -t-h-e -a-u-t-h-o-r-i-t-y -t-o 
-s-e-t -m-i-n-i-m-u-m -a-m-o-u-n-t-s -o-f -a-s-s-i-s-t-a-n-c-e -p-e-r 
-i-n-s-t-i-t-u-t-i-o-n-.
    -(-e-) -M-a-t-c-h-i-n-g -R-e-q-u-i-r-e-m-e-n-t-s-.---
            -(-1-) -A-s-s-i-s-t-a-n-c-e -p-r-o-v-i-d-e-d -t-o 
        -q-u-a-l-i-f-i-e-d -i-n-s-u-r-e-d -c-o-m-m-u-n-i-t-y 
        -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n-s-, -o-t-h-e-r -t-h-a-n -d-e-p-o-s-i-t-s 
        -o-r -m-e-m-b-e-r-s-h-i-p -s-h-a-r-e-s -o-f -$-1-0-0-,-0-0-0 
        -o-r -l-e-s-s-, -t-e-c-h-n-i-c-a-l -a-s-s-i-s-t-a-n-c-e-, -o-r 
        -g-r-a-n-t-s -f-o-r -t-e-c-h-n-i-c-a-l -a-s-s-i-s-t-a-n-c-e-, 
        -s-h-a-l-l -b-e -m-a-t-c-h-e-d -b-y -n-o -l-e-s-s -t-h-a-n 
        -o-n-e -d-o-l-l-a-r -o-f -e-q-u-i-t-y-, -d-e-p-o-s-i-t-s -o-r 
        -m-e-m-b-e-r-s-h-i-p -s-h-a-r-e-s -f-o-r -e-a-c-h -d-o-l-l-a-r 
        -p-r-o-v-i-d-e-d -b-y -t-h-e -F-u-n-d-. -T-h-e -F-u-n-d 
        -s-h-a-l-l -r-e-q-u-i-r-e -a -m-a-t-c-h -f-o-r -a-l-l 
        -o-t-h-e-r -a-s-s-i-s-t-a-n-c-e-, -t-h-e -a-m-o-u-n-t -a-n-d 
        -f-o-r-m -o-f -w-h-i-c-h -s-h-a-l-l -b-e -i-n -t-h-e 
        -d-i-s-c-r-e-t-i-o-n -o-f -t-h-e -F-u-n-d-; -p-r-o-v-i-d-e-d 
        -t-h-a-t-, -t-h-e -F-u-n-d -s-h-a-l-l -i-n -n-o -e-v-e-n-t 
        -r-e-q-u-i-r-e -a-s-s-i-s-t-a-n-c-e -p-r-o-v-i-d-e-d -i-n 
        -t-h-e -f-o-r-m -o-f -d-e-p-o-s-i-t-s -o-r -m-e-m-b-e-r-s-h-i-p 
        -s-h-a-r-e-s -o-f -$-1-0-0-,-0-0-0 -o-r -l-e-s-s-, 
        -t-e-c-h-n-i-c-a-l -a-s-s-i-s-t-a-n-c-e-, -o-r -g-r-a-n-t-s 
        -f-o-r -t-e-c-h-n-i-c-a-l -a-s-s-i-s-t-a-n-c-e -t-o -b-e 
        -m-a-t-c-h-e-d-. -T-h-e -F-u-n-d -s-h-a-l-l -p-r-o-v-i-d-e -n-o 
        -a-s-s-i-s-t-a-n-c-e -e-x-c-e-p-t -t-e-c-h-n-i-c-a-l 
        -a-s-s-i-s-t-a-n-c-e -o-r -g-r-a-n-t-s -f-o-r 
        -t-e-c-h-n-i-c-a-l -a-s-s-i-s-t-a-n-c-e -u-n-t-i-l -a 
        -q-u-a-l-i-f-i-e-d -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
        -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n -h-a-s -s-e-c-u-r-e-d 
        -l-e-g-a-l-l-y -e-n-f-o-r-c-e-a-b-l-e -c-o-m-m-i-t-m-e-n-t-s 
        -f-o-r -t-h-e -e-n-t-i-r-e -m-a-t-c-h -r-e-q-u-i-r-e-d-. 
        -A-s-s-i-s-t-a-n-c-e -m-a-y -b-e -p-r-o-v-i-d-e-d -i-n -o-n-e 
        -l-u-m-p -s-u-m-, -o-r -o-v-e-r -a -p-e-r-i-o-d -o-f -t-i-m-e-, 
        -a-s -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e -F-u-n-d-.
            -(-2-) -A-s-s-i-s-t-a-n-c-e -s-h-a-l-l -b-e -m-a-t-c-h-e-d 
        -w-i-t-h -f-u-n-d-s -f-r-o-m -s-o-u-r-c-e-s -o-t-h-e-r -t-h-a-n 
        -t-h-e -F-e-d-e-r-a-l -G-o-v-e-r-n-m-e-n-t-.
    -(-f-) -T-e-r-m-s -a-n-d -C-o-n-d-i-t-i-o-n-s-.---
            -(-1-) -I-n -g-e-n-e-r-a-l-.----T-h-e -F-u-n-d -s-h-a-l-l 
        -p-r-o-v-i-d-e -a-s-s-i-s-t-a-n-c-e -a-u-t-h-o-r-i-z-e-d 
        -u-n-d-e-r -t-h-i-s -A-c-t -i-n -s-u-c-h -f-o-r-m -a-n-d 
        -s-u-b-j-e-c-t -t-o -s-u-c-h -r-e-s-t-r-i-c-t-i-o-n-s -a-s 
        -a-r-e -n-e-c-e-s-s-a-r-y -t-o -e-n-s-u-r-e -t-h-a-t -t-o 
        -t-h-e -m-a-x-i-m-u-m -e-x-t-e-n-t -p-r-a-c-t-i-c-a-b-l-e---
                    -(-A-) -a-l-l -a-s-s-i-s-t-a-n-c-e -g-r-a-n-t-e-d 
                -i-s -u-s-e-d -b-y -t-h-e -q-u-a-l-i-f-i-e-d 
                -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
                -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n -i-n -a 
                -m-a-n-n-e-r -c-o-n-s-i-s-t-e-n-t -w-i-t-h -t-h-e 
                -p-u-r-p-o-s-e-s -o-f -t-h-i-s -A-c-t-;
                    -(-B-) -q-u-a-l-i-f-i-e-d -c-o-m-m-u-n-i-t-y 
                -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
                -i-n-s-t-i-t-u-t-i-o-n-s -r-e-c-e-i-v-i-n-g 
                -a-s-s-i-s-t-a-n-c-e -t-h-a-t -a-r-e -n-o-t 
                -o-t-h-e-r-w-i-s-e -r-e-g-u-l-a-t-e-d -b-y -t-h-e 
                -F-e-d-e-r-a-l -g-o-v-e-r-n-m-e-n-t -o-r -b-y -a 
                -S-t-a-t-e -g-o-v-e-r-n-m-e-n-t -a-r-e 
                -f-i-n-a-n-c-i-a-l-l-y -a-n-d -m-a-n-a-g-e-r-i-a-l-l-y 
                -s-o-u-n-d-;
                    -(-C-) -a-s-s-i-s-t-a-n-c-e -r-e-s-u-l-t-s -i-n -a 
                -n-e-t -i-n-c-r-e-a-s-e-, -b-o-t-h -n-a-t-i-o-n-a-l-l-y 
                -a-n-d -i-n -t-h-e -l-o-c-a-l -c-o-m-m-u-n-i-t-i-e-s 
                -i-n -w-h-i-c-h -a-s-s-i-s-t-a-n-c-e -i-s 
                -p-r-o-v-i-d-e-d-, -i-n -c-a-p-i-t-a-l-, -c-r-e-d-i-t-, 
                -a-n-d -d-e-v-e-l-o-p-m-e-n-t -s-e-r-v-i-c-e-s-; -a-n-d
                    -(-D-) -a-s-s-i-s-t-a-n-c-e -i-s -p-r-o-v-i-d-e-d 
                -i-n -a -m-a-n-n-e-r -t-h-a-t -e-n-c-o-u-r-a-g-e-s 
                -a-f-f-i-l-i-a-t-i-o-n-s -a-n-d 
                -p-a-r-t-n-e-r-s-h-i-p-s -b-e-t-w-e-e-n -i-n-s-u-r-e-d 
                -d-e-p-o-s-i-t-o-r-y -i-n-s-t-i-t-u-t-i-o-n-s-, 
                -s-e-c-o-n-d-a-r-y -m-a-r-k-e-t-s -o-r -o-t-h-e-r 
                -s-o-u-r-c-e-s -o-f -c-r-e-d-i-t -o-r -l-e-v-e-r-a-g-e 
                -a-n-d -l-o-c-a-l -o-r-g-a-n-i-z-a-t-i-o-n-s 
                -d-e-d-i-c-a-t-e-d -t-o -c-o-m-m-u-n-i-t-y 
                -d-e-v-e-l-o-p-m-e-n-t-.
            -(-2-) -C-o-n-s-u-l-t-a-t-i-o-n -w-i-t-h -b-a-n-k-i-n-g 
        -r-e-g-u-l-a-t-o-r-s-.----P-r-i-o-r -t-o -p-r-o-v-i-d-i-n-g 
        -a-s-s-i-s-t-a-n-c-e -t-o -a -q-u-a-l-i-f-i-e-d -i-n-s-u-r-e-d 
        -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n-, -t-h-e -B-o-a-r-d -s-h-o-u-l-d 
        -c-o-n-s-u-l-t -w-i-t-h -t-h-e -a-p-p-r-o-p-r-i-a-t-e 
        -F-e-d-e-r-a-l -b-a-n-k-i-n-g -a-g-e-n-c-y -o-r-, -i-n -t-h-e 
        -c-a-s-e -o-f -a-n -i-n-s-u-r-e-d -c-r-e-d-i-t -u-n-i-o-n-, 
        -t-h-e -N-a-t-i-o-n-a-l -C-r-e-d-i-t -U-n-i-o-n 
        -A-d-m-i-n-i-s-t-r-a-t-i-o-n-.
            -(-3-) -A-s-s-i-s-t-a-n-c-e -a-g-r-e-e-m-e-n-t-.---
                    -(-A-) -T-h-e -B-o-a-r-d -s-h-a-l-l -i-m-p-o-s-e 
                -r-e-s-t-r-i-c-t-i-o-n-s -o-n -t-h-e -u-s-e -o-f 
                -a-s-s-i-s-t-a-n-c-e -t-h-r-o-u-g-h -a -s-t-o-c-k 
                -p-u-r-c-h-a-s-e -a-g-r-e-e-m-e-n-t-, -s-h-a-r-e 
                -p-u-r-c-h-a-s-e -a-g-r-e-e-m-e-n-t-, -o-r 
                -t-h-r-o-u-g-h -a -c-o-n-t-r-a-c-t -e-n-t-e-r-e-d 
                -i-n-t-o -i-n -c-o-n-s-i-d-e-r-a-t-i-o-n -f-o-r -t-h-e 
                -p-r-o-v-i-s-i-o-n -o-f -a-s-s-i-s-t-a-n-c-e-.
                    -(-B-) -S-u-c-h -a-g-r-e-e-m-e-n-t -o-r 
                -c-o-n-t-r-a-c-t -s-h-a-l-l -r-e-q-u-i-r-e 
                -i-n-s-t-i-t-u-t-i-o-n-s -a-s-s-i-s-t-e-d -u-n-d-e-r 
                -t-h-i-s -A-c-t -t-o -c-o-m-p-l-y -w-i-t-h 
                -p-e-r-f-o-r-m-a-n-c-e -g-o-a-l-s-. -T-h-e 
                -p-e-r-f-o-r-m-a-n-c-e -g-o-a-l-s -s-h-a-l-l -b-e 
                -n-e-g-o-t-i-a-t-e-d -b-e-t-w-e-e-n -t-h-e -B-o-a-r-d 
                -a-n-d -e-a-c-h -q-u-a-l-i-f-i-e-d -c-o-m-m-u-n-i-t-y 
                -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
                -i-n-s-t-i-t-u-t-i-o-n -r-e-c-e-i-v-i-n-g 
                -a-s-s-i-s-t-a-n-c-e -b-a-s-e-d -u-p-o-n -t-h-e 
                -s-t-r-a-t-e-g-i-c -p-l-a-n -s-u-b-m-i-t-t-e-d 
                -p-u-r-s-u-a-n-t -t-o -s-e-c-t-i-o-n -5-(-b-)-(-5-) 
                -o-f -t-h-i-s -A-c-t-. -T-h-e -p-e-r-f-o-r-m-a-n-c-e 
                -g-o-a-l-s -m-a-y -b-e -r-e-n-e-g-o-t-i-a-t-e-d 
                -j-o-i-n-t-l-y -a-s -n-e-c-e-s-s-a-r-y -o-r 
                -a-p-p-r-o-p-r-i-a-t-e-, -s-u-b-j-e-c-t -t-o 
                -s-u-b-p-a-r-a-g-r-a-p-h -(-C-) -o-f -t-h-i-s 
                -s-e-c-t-i-o-n-. -A-c-t-i-v-i-t-y -l-e-v-e-l-s -f-o-r 
                -i-n-s-u-r-e-d -c-o-m-m-u-n-i-t-y 
                -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
                -i-n-s-t-i-t-u-t-i-o-n-s -s-h-o-u-l-d -b-e 
                -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e -B-o-a-r-d -i-n 
                -c-o-n-s-u-l-t-a-t-i-o-n -w-i-t-h -t-h-e 
                -a-p-p-r-o-p-r-i-a-t-e -F-e-d-e-r-a-l -b-a-n-k-i-n-g 
                -a-g-e-n-c-y -o-r-, -i-n -t-h-e -c-a-s-e -o-f -a-n 
                -i-n-s-u-r-e-d -c-r-e-d-i-t -u-n-i-o-n-, -w-i-t-h 
                -t-h-e -N-a-t-i-o-n-a-l -C-r-e-d-i-t -U-n-i-o-n 
                -A-d-m-i-n-i-s-t-r-a-t-i-o-n-.
                    -(-C-) -T-h-e -a-g-r-e-e-m-e-n-t -o-r 
                -c-o-n-t-r-a-c-t -s-h-a-l-l -s-p-e-c-i-f-y 
                -s-a-n-c-t-i-o-n-s -a-v-a-i-l-a-b-l-e -t-o -t-h-e 
                -B-o-a-r-d-, -i-n -i-t-s -d-i-s-c-r-e-t-i-o-n-, -i-n 
                -t-h-e -e-v-e-n-t -o-f -n-o-n-c-o-m-p-l-i-a-n-c-e 
                -w-i-t-h -t-h-e -p-u-r-p-o-s-e-s -o-f -t-h-i-s -A-c-t 
                -o-r -t-h-e -t-e-r-m-s -o-f -t-h-e -a-g-r-e-e-m-e-n-t-. 
                -T-h-e -s-a-n-c-t-i-o-n-s -m-a-y -i-n-c-l-u-d-e 
                -r-e-v-o-c-a-t-i-o-n -o-f -a-p-p-r-o-v-a-l -o-f -t-h-e 
                -a-p-p-l-i-c-a-t-i-o-n-, -t-e-r-m-i-n-a-t-i-n-g -o-r 
                -r-e-d-u-c-i-n-g -f-u-t-u-r-e -a-s-s-i-s-t-a-n-c-e-, 
                -r-e-q-u-i-r-i-n-g -r-e-p-a-y-m-e-n-t -o-f 
                -a-s-s-i-s-t-a-n-c-e-, -a-n-d -r-e-q-u-i-r-i-n-g 
                -c-h-a-n-g-e-s -t-o -t-h-e -p-e-r-f-o-r-m-a-n-c-e 
                -g-o-a-l-s -i-m-p-o-s-e-d -p-u-r-s-u-a-n-t -t-o 
                -s-u-b-p-a-r-a-g-r-a-p-h -(-B-) -o-r -t-o -t-h-e 
                -s-t-r-a-t-e-g-i-c -p-l-a-n -s-u-b-m-i-t-t-e-d 
                -p-u-r-s-u-a-n-t -t-o -s-e-c-t-i-o-n -5-(-b-)-(-5-) 
                -o-f -t-h-i-s -A-c-t-. -I-n -t-h-e -c-a-s-e -o-f -a-n 
                -i-n-s-u-r-e-d -c-o-m-m-u-n-i-t-y 
                -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
                -i-n-s-t-i-t-u-t-i-o-n-, -t-h-e -B-o-a-r-d -s-h-a-l-l 
                -c-o-n-s-u-l-t -w-i-t-h -t-h-e -a-p-p-r-o-p-r-i-a-t-e 
                -F-e-d-e-r-a-l -b-a-n-k-i-n-g -a-g-e-n-c-y -o-r-, -i-n 
                -t-h-e -c-a-s-e -o-f -a-n -i-n-s-u-r-e-d -c-r-e-d-i-t 
                -u-n-i-o-n-, -t-h-e -N-a-t-i-o-n-a-l -C-r-e-d-i-t 
                -U-n-i-o-n -A-d-m-i-n-i-s-t-r-a-t-i-o-n-, -b-e-f-o-r-e 
                -i-m-p-o-s-i-n-g -s-a-n-c-t-i-o-n-s -p-u-r-s-u-a-n-t 
                -t-o -t-h-i-s -p-a-r-a-g-r-a-p-h-.
            -(-4-) -R-e-v-i-e-w-.----A-t -l-e-a-s-t -a-n-n-u-a-l-l-y-, 
        -t-h-e -B-o-a-r-d -s-h-a-l-l -r-e-v-i-e-w -t-h-e 
        -p-e-r-f-o-r-m-a-n-c-e -o-f -e-a-c-h -a-s-s-i-s-t-e-d 
        -q-u-a-l-i-f-i-e-d -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
        -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n -i-n -c-a-r-r-y-i-n-g 
        -o-u-t -i-t-s -s-t-r-a-t-e-g-i-c -p-l-a-n -a-n-d 
        -p-e-r-f-o-r-m-a-n-c-e -g-o-a-l-s-.
            -(-5-) -R-e-p-o-r-t-i-n-g-.----T-h-e -B-o-a-r-d -s-h-a-l-l 
        -r-e-q-u-i-r-e -e-a-c-h -q-u-a-l-i-f-i-e-d -c-o-m-m-u-n-i-t-y 
        -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n -r-e-c-e-i-v-i-n-g -a-s-s-i-s-t-a-n-c-e 
        -t-o -s-u-b-m-i-t -a-n -a-n-n-u-a-l -r-e-p-o-r-t -t-o -t-h-e 
        -F-u-n-d -o-n -i-t-s -a-c-t-i-v-i-t-i-e-s-, -i-t-s 
        -f-i-n-a-n-c-i-a-l -c-o-n-d-i-t-i-o-n-, -i-t-s -s-u-c-c-e-s-s 
        -i-n -m-e-e-t-i-n-g -p-e-r-f-o-r-m-a-n-c-e -g-o-a-l-s-, -a-n-d 
        -i-t-s -c-o-m-p-l-i-a-n-c-e -w-i-t-h -o-t-h-e-r 
        -r-e-q-u-i-r-e-m-e-n-t-s -o-f -t-h-i-s -A-c-t-.
    -(-g-) -A-u-t-h-o-r-i-t-y -t-o -S-e-l-l -E-q-u-i-t-y 
-I-n-v-e-s-t-m-e-n-t -a-n-d -L-o-a-n-s-.----T-h-e -B-o-a-r-d -s-h-a-l-l 
-h-a-v-e -t-h-e -a-u-t-h-o-r-i-t-y -a-t -a-n-y -t-i-m-e -t-o -s-e-l-l 
-i-t-s -i-n-v-e-s-t-m-e-n-t-s -a-n-d -l-o-a-n-s -a-n-d -m-a-y-, -i-n 
-i-t-s -d-i-s-c-r-e-t-i-o-n-, -r-e-t-a-i-n -t-h-e -p-o-w-e-r -t-o 
-e-n-f-o-r-c-e -l-i-m-i-t-a-t-i-o-n-s -o-n -a-s-s-i-s-t-a-n-c-e 
-e-n-t-e-r-e-d -i-n-t-o -i-n -a-c-c-o-r-d-a-n-c-e -w-i-t-h -t-h-e 
-r-e-q-u-i-r-e-m-e-n-t-s -o-f -t-h-i-s -A-c-t-.
    -(-h-) -N-o -A-u-t-h-o-r-i-t-y -t-o -L-i-m-i-t 
-S-u-p-e-r-v-i-s-i-o-n -a-n-d -R-e-g-u-l-a-t-i-o-n-.---N-o-t-h-i-n-g 
-i-n -t-h-i-s -A-c-t -s-h-a-l-l -a-f-f-e-c-t -a-n-y -a-u-t-h-o-r-i-t-y 
-o-f -t-h-e -a-p-p-r-o-p-r-i-a-t-e -F-e-d-e-r-a-l -b-a-n-k-i-n-g 
-a-g-e-n-c-y -o-r-, -i-n -t-h-e -c-a-s-e -o-f -a-n -i-n-s-u-r-e-d 
-c-r-e-d-i-t -u-n-i-o-n-, -t-h-e -N-a-t-i-o-n-a-l -C-r-e-d-i-t 
-U-n-i-o-n -A-d-m-i-n-i-s-t-r-a-t-i-o-n-, -t-o -s-u-p-e-r-v-i-s-e 
-a-n-d -r-e-g-u-l-a-t-e -a-n -i-n-s-u-r-e-d -c-o-m-m-u-n-i-t-y 
-d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-.

-S-E-C-. -8-. -E-N-C-O-U-R-A-G-E-M-E-N-T -O-F -P-R-I-V-A-T-E 
              -E-N-T-I-T-I-E-S-.

    -T-h-e -B-o-a-r-d -m-a-y -c-a-u-s-e -t-o -b-e 
-i-n-c-o-r-p-o-r-a-t-e-d-, -o-r -e-n-c-o-u-r-a-g-e -t-h-e 
-i-n-c-o-r-p-o-r-a-t-i-o-n -o-f-, -p-r-i-v-a-t-e -n-o-n---p-r-o-f-i-t 
-a-n-d -f-o-r---p-r-o-f-i-t -e-n-t-i-t-i-e-s -t-h-a-t -w-i-l-l 
-c-o-m-p-l-e-m-e-n-t -t-h-e -a-c-t-i-v-i-t-i-e-s -o-f -t-h-e -F-u-n-d 
-i-n -c-a-r-r-y-i-n-g -o-u-t -t-h-e -p-u-r-p-o-s-e-s -o-f -t-h-i-s 
-A-c-t-. -T-h-e -p-u-r-p-o-s-e-s -o-f -a-n-y -s-u-c-h -e-n-t-i-t-i-e-s 
-s-h-a-l-l -b-e -l-i-m-i-t-e-d -t-o -i-n-v-e-s-t-i-n-g -i-n -a-n-d 
-a-s-s-i-s-t-i-n-g -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t 
-f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-s -i-n -a -m-a-n-n-e-r 
-s-i-m-i-l-a-r -t-o -t-h-e -a-c-t-i-v-i-t-i-e-s -o-f -t-h-e -F-u-n-d 
-u-n-d-e-r -t-h-i-s -A-c-t-. -A-n-y -s-u-c-h -e-n-t-i-t-i-e-s 
-s-h-a-l-l -b-e -m-a-n-a-g-e-d -e-x-c-l-u-s-i-v-e-l-y -b-y 
-p-r-i-v-a-t-e -i-n-d-i-v-i-d-u-a-l-s -w-h-o -a-r-e -s-e-l-e-c-t-e-d 
-i-n -a-c-c-o-r-d-a-n-c-e -w-i-t-h -t-h-e -l-a-w-s -o-f -t-h-e 
-j-u-r-i-s-d-i-c-t-i-o-n -o-f -i-n-c-o-r-p-o-r-a-t-i-o-n-.

-S-E-C-. -9-. -C-L-E-A-R-I-N-G-H-O-U-S-E -F-U-N-C-T-I-O-N-.

    -T-h-e -F-u-n-d -s-h-a-l-l -e-s-t-a-b-l-i-s-h -a-n-d 
-m-a-i-n-t-a-i-n -a-n -i-n-f-o-r-m-a-t-i-o-n -c-l-e-a-r-i-n-g-h-o-u-s-e 
-i-n -c-o-o-r-d-i-n-a-t-i-o-n -w-i-t-h -t-h-e -D-e-p-a-r-t-m-e-n-t-s 
-o-f -A-g-r-i-c-u-l-t-u-r-e-, -C-o-m-m-e-r-c-e-, -a-n-d -H-o-u-s-i-n-g 
-a-n-d -U-r-b-a-n -D-e-v-e-l-o-p-m-e-n-t-, -t-h-e -S-m-a-l-l 
-B-u-s-i-n-e-s-s -A-d-m-i-n-i-s-t-r-a-t-i-o-n-, -o-t-h-e-r 
-F-e-d-e-r-a-l -a-g-e-n-c-i-e-s-, -a-n-d -c-o-m-m-u-n-i-t-y 
-d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-s---
            -(-1-) -t-o -c-a-u-s-e -t-o -b-e -c-o-l-l-e-c-t-e-d-, 
        -c-o-m-p-i-l-e-d-, -a-n-d -a-n-a-l-y-z-e-d 
        -i-n-f-o-r-m-a-t-i-o-n -p-e-r-t-i-n-e-n-t -t-o 
        -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n-s -t-h-a-t -w-i-l-l -a-s-s-i-s-t -i-n 
        -c-r-e-a-t-i-n-g-, -d-e-v-e-l-o-p-i-n-g-, -e-x-p-a-n-d-i-n-g-, 
        -a-n-d -p-r-e-s-e-r-v-i-n-g -t-h-e-s-e 
        -i-n-s-t-i-t-u-t-i-o-n-s-; -a-n-d
            -(-2-) -t-o -c-a-u-s-e -t-o -b-e -e-s-t-a-b-l-i-s-h-e-d -a 
        -s-e-r-v-i-c-e -c-e-n-t-e-r -f-o-r -c-o-m-p-r-e-h-e-n-s-i-v-e 
        -i-n-f-o-r-m-a-t-i-o-n -o-n -f-i-n-a-n-c-i-a-l-, 
        -t-e-c-h-n-i-c-a-l-, -a-n-d -m-a-n-a-g-e-m-e-n-t 
        -a-s-s-i-s-t-a-n-c-e-, -c-a-s-e -s-t-u-d-i-e-s -o-f -t-h-e 
        -a-c-t-i-v-i-t-i-e-s -o-f -c-o-m-m-u-n-i-t-y 
        -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n-s-, -r-e-g-u-l-a-t-i-o-n-s-, -a-n-d 
        -o-t-h-e-r -i-n-f-o-r-m-a-t-i-o-n -t-h-a-t -m-a-y 
        -p-r-o-m-o-t-e -t-h-e -p-u-r-p-o-s-e-s -o-f -t-h-i-s -A-c-t-.

-S-E-C-. -1-0-. -R-E-C-O-R-D-K-E-E-P-I-N-G-, -R-E-P-O-R-T-S-, -A-N-D 
              -A-U-D-I-T-S-.

    -(-a-) -R-e-c-o-r-d-k-e-e-p-i-n-g-.--
            -(-1-) -A -q-u-a-l-i-f-i-e-d -c-o-m-m-u-n-i-t-y 
        -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n -r-e-c-e-i-v-i-n-g -a-s-s-i-s-t-a-n-c-e 
        -f-r-o-m -t-h-e -F-u-n-d -s-h-a-l-l -k-e-e-p -s-u-c-h 
        -r-e-c-o-r-d-s -a-s -m-a-y -b-e -r-e-a-s-o-n-a-b-l-y 
        -n-e-c-e-s-s-a-r-y -t-o -d-i-s-c-l-o-s-e -t-h-e 
        -d-i-s-p-o-s-i-t-i-o-n -o-f -a-n-y -a-s-s-i-s-t-a-n-c-e 
        -u-n-d-e-r -t-h-i-s -A-c-t -a-n-d -t-o -e-n-s-u-r-e 
        -c-o-m-p-l-i-a-n-c-e -w-i-t-h -t-h-e -r-e-q-u-i-r-e-m-e-n-t-s 
        -o-f -t-h-i-s -A-c-t-.
            -(-2-) -T-h-e -F-u-n-d -s-h-a-l-l -h-a-v-e -a-c-c-e-s-s-, 
        -f-o-r -t-h-e -p-u-r-p-o-s-e -o-f -d-e-t-e-r-m-i-n-i-n-g 
        -c-o-m-p-l-i-a-n-c-e -w-i-t-h -t-h-i-s -A-c-t-, -t-o -a-n-y 
        -b-o-o-k-s-, -d-o-c-u-m-e-n-t-s-, -p-a-p-e-r-s-, -a-n-d 
        -r-e-c-o-r-d-s -o-f -a -q-u-a-l-i-f-i-e-d -c-o-m-m-u-n-i-t-y 
        -d-e-v-e-l-o-p-m-e-n-t -f-i-n-a-n-c-i-a-l 
        -i-n-s-t-i-t-u-t-i-o-n -r-e-c-e-i-v-i-n-g -a-s-s-i-s-t-a-n-c-e 
        -f-r-o-m -t-h-e -F-u-n-d -t-h-a-t -a-r-e -p-e-r-t-i-n-e-n-t 
        -t-o -a-s-s-i-s-t-a-n-c-e -r-e-c-e-i-v-e-d -u-n-d-e-r -t-h-i-s 
        -A-c-t-.
    -(-b-) -R-e-p-o-r-t-s-.--
            -(-1-) -A-n-n-u-a-l -r-e-p-o-r-t-.---T-h-e -F-u-n-d 
        -s-h-a-l-l -c-o-n-d-u-c-t -a-n -a-n-n-u-a-l 
        -e-v-a-l-u-a-t-i-o-n -o-f -t-h-e -a-c-t-i-v-i-t-i-e-s 
        -c-a-r-r-i-e-d -o-u-t -p-u-r-s-u-a-n-t -t-o -t-h-i-s -A-c-t 
        -a-n-d -s-h-a-l-l -s-u-b-m-i-t -a -r-e-p-o-r-t -o-f -i-t-s 
        -f-i-n-d-i-n-g-s -t-o -t-h-e -P-r-e-s-i-d-e-n-t -w-i-t-h-i-n 
        -1-2-0 -d-a-y-s -o-f -t-h-e -e-n-d -o-f -e-a-c-h -f-i-s-c-a-l 
        -y-e-a-r -o-f -t-h-e -F-u-n-d-. -T-h-e -r-e-p-o-r-t -s-h-a-l-l 
        -i-n-c-l-u-d-e -f-i-n-a-n-c-i-a-l -s-t-a-t-e-m-e-n-t-s 
        -a-u-d-i-t-e-d -i-n -a-c-c-o-r-d-a-n-c-e -w-i-t-h 
        -s-u-b-s-e-c-t-i-o-n -(-c-)-.
            -(-2-) -I-n-s-t-i-t-u-t-i-o-n-a-l -v-o-i-c-e -f-o-r 
        -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t-.--
                    -(-A-) -O-n-g-o-i-n-g -s-t-u-d-y-.---T-h-e -F-u-n-d 
                -s-h-a-l-l -c-o-n-d-u-c-t-, -o-r -c-a-u-s-e -t-o -b-e 
                -c-o-n-d-u-c-t-e-d-, -a-n -o-n-g-o-i-n-g -s-t-u-d-y 
                -t-o -i-d-e-n-t-i-f-y -a-n-d -e-v-a-l-u-a-t-e -t-h-e 
                -m-o-s-t -e-f-f-e-c-t-i-v-e -a-n-d 
                -f-i-n-a-n-c-i-a-l-l-y -s-o-u-n-d -p-o-l-i-c-i-e-s 
                -a-n-d -p-r-a-c-t-i-c-e-s -f-o-r -e-n-c-o-u-r-a-g-i-n-g 
                -i-n-v-e-s-t-m-e-n-t -i-n -d-i-s-t-r-e-s-s-e-d 
                -c-o-m-m-u-n-i-t-i-e-s-, -i-n-c-l-u-d-i-n-g -s-m-a-l-l 
                -b-u-s-i-n-e-s-s -a-n-d -c-o-m-m-e-r-c-i-a-l 
                -l-e-n-d-i-n-g-, -b-u-s-i-n-e-s-s -f-o-r-m-a-t-i-o-n 
                -a-n-d -e-x-p-a-n-s-i-o-n-, -c-o-m-m-u-n-i-t-y -a-n-d 
                -e-c-o-n-o-m-i-c -d-e-v-e-l-o-p-m-e-n-t-, 
                -c-o-m-m-e-r-c-i-a-l -r-e-a-l -e-s-t-a-t-e -a-n-d 
                -m-u-l-t-i---f-a-m-i-l-y -h-o-u-s-i-n-g-, -a-n-d 
                -h-o-m-e -m-o-r-t-g-a-g-e-s-. -I-n -a-d-d-i-t-i-o-n-, 
                -t-h-e -F-u-n-d -m-a-y -s-t-u-d-y-, -o-r -c-a-u-s-e 
                -t-o -b-e -s-t-u-d-i-e-d-, -r-e-l-a-t-e-d 
                -m-a-t-t-e-r-s-, -s-u-c-h -a-s 
                -i-d-e-n-t-i-f-i-c-a-t-i-o-n -o-f -s-o-u-r-c-e-s -o-f 
                -a-n-d -a-c-c-e-s-s -t-o -c-a-p-i-t-a-l -a-n-d 
                -l-o-a-n-s -f-o-r -c-o-m-m-u-n-i-t-y 
                -i-n-v-e-s-t-m-e-n-t-; -d-e-v-e-l-o-p-m-e-n-t -o-f 
                -s-e-c-o-n-d-a-r-y -m-a-r-k-e-t-s -f-o-r 
                -e-c-o-n-o-m-i-c -a-n-d -c-o-m-m-u-n-i-t-y 
                -d-e-v-e-l-o-p-m-e-n-t-, -s-m-a-l-l -b-u-s-i-n-e-s-s 
                -a-n-d -c-o-m-m-e-r-c-i-a-l -l-o-a-n-s-, -a-n-d 
                -h-o-m-e -m-o-r-t-g-a-g-e -l-o-a-n-s -a-n-d 
                -i-n-v-e-s-t-m-e-n-t-s-; -a-n-d -m-e-t-h-o-d-s -t-o 
                -i-n-v-o-l-v-e -a-l-l -s-e-g-m-e-n-t-s -o-f -t-h-e 
                -f-i-n-a-n-c-i-a-l -s-e-r-v-i-c-e-s -i-n-d-u-s-t-r-y 
                -i-n -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t-.
                    -(-B-) -C-o-n-s-u-l-t-a-t-i-o-n-.----I-n -t-h-e 
                -c-o-n-d-u-c-t -o-f -t-h-e -s-t-u-d-y-, -t-h-e -F-u-n-d 
                -s-h-a-l-l -c-o-n-s-u-l-t-, -o-r -c-a-u-s-e 
                -c-o-n-s-u-l-t-a-t-i-o-n -w-i-t-h-, -t-h-e -O-f-f-i-c-e 
                -o-f -t-h-e -C-o-m-p-t-r-o-l-l-e-r -o-f -t-h-e 
                -C-u-r-r-e-n-c-y-, -t-h-e -F-e-d-e-r-a-l -D-e-p-o-s-i-t 
                -I-n-s-u-r-a-n-c-e -C-o-r-p-o-r-a-t-i-o-n-, -t-h-e 
                -B-o-a-r-d -o-f -G-o-v-e-r-n-o-r-s -o-f -t-h-e 
                -F-e-d-e-r-a-l -R-e-s-e-r-v-e -S-y-s-t-e-m-, -t-h-e 
                -F-e-d-e-r-a-l -H-o-u-s-i-n-g -F-i-n-a-n-c-e 
                -B-o-a-r-d-, -t-h-e -F-a-r-m -C-r-e-d-i-t 
                -A-d-m-i-n-i-s-t-r-a-t-i-o-n-, -t-h-e -O-f-f-i-c-e -o-f 
                -T-h-r-i-f-t -S-u-p-e-r-v-i-s-i-o-n-, -t-h-e 
                -N-a-t-i-o-n-a-l -C-r-e-d-i-t -U-n-i-o-n 
                -A-d-m-i-n-i-s-t-r-a-t-i-o-n-, -c-o-m-m-u-n-i-t-y 
                -r-e-i-n-v-e-s-t-m-e-n-t-, -c-i-v-i-l -r-i-g-h-t-s-, 
                -c-o-n-s-u-m-e-r -a-n-d -f-i-n-a-n-c-i-a-l 
                -o-r-g-a-n-i-z-a-t-i-o-n-s-, -a-n-d -s-u-c-h 
                -r-e-p-r-e-s-e-n-t-a-t-i-v-e-s -o-f -a-g-e-n-c-i-e-s 
                -o-r -o-t-h-e-r -p-e-r-s-o-n-s -a-s -t-h-e -F-u-n-d 
                -m-a-y -d-e-t-e-r-m-i-n-e-.
                    -(-C-) -R-e-p-o-r-t-s-.----W-i-t-h-i-n -2-7-0 
                -d-a-y-s -a-f-t-e-r -t-h-e -d-a-t-e -o-f 
                -e-n-a-c-t-m-e-n-t -o-f -t-h-i-s -A-c-t-, -t-h-e 
                -F-u-n-d -s-h-a-l-l -r-e-p-o-r-t -t-o -t-h-e 
                -P-r-e-s-i-d-e-n-t -i-t-s -i-n-i-t-i-a-l 
                -f-i-n-d-i-n-g-s -a-n-d -r-e-c-o-m-m-e-n-d-a-t-i-o-n-s 
                -r-e-g-a-r-d-i-n-g -t-h-e -m-a-t-t-e-r-s -s-e-t 
                -f-o-r-t-h -i-n -s-u-b-p-a-r-a-g-r-a-p-h -(-A-)-. 
                -T-h-e-r-e-a-f-t-e-r-, -t-h-e -F-u-n-d -s-h-a-l-l 
                -r-e-p-o-r-t -i-t-s -f-i-n-d-i-n-g-s -a-n-d 
                -r-e-c-o-m-m-e-n-d-a-t-i-o-n-s -t-o -t-h-e 
                -P-r-e-s-i-d-e-n-t -w-i-t-h -t-h-e -a-n-n-u-a-l 
                -r-e-p-o-r-t -r-e-q-u-i-r-e-d -a-n-d 
                -r-e-c-o-m-m-e-n-d-a-t-i-o-n-s -t-o -t-h-e 
                -P-r-e-s-i-d-e-n-t -w-i-t-h -t-h-e -a-n-n-u-a-l 
                -r-e-p-o-r-t -r-e-q-u-i-r-e-d -b-y -p-a-r-a-g-r-a-p-h 
                -(-b-)-(-1-)-.
            -(-3-) -I-n-v-e-s-t-m-e-n-t-, -g-o-v-e-r-n-a-n-c-e-, -a-n-d 
        -r-o-l-e -o-f -f-u-n-d-.----S-i-x -y-e-a-r-s -f-o-l-l-o-w-i-n-g 
        -t-h-e -d-a-t-e -o-f -e-n-a-c-t-m-e-n-t -o-f -t-h-i-s -A-c-t-, 
        -t-h-e -F-u-n-d-, -i-n -a-c-c-o-r-d-a-n-c-e -w-i-t-h -t-h-e 
        -p-r-o-c-e-d-u-r-e-s -d-e-s-c-r-i-b-e-d -i-n 
        -p-a-r-a-g-r-a-p-h-s -(-2-)-(-A-) -a-n-d -(-B-)-, -s-h-a-l-l 
        -c-o-n-d-u-c-t -a -s-t-u-d-y -e-v-a-l-u-a-t-i-n-g -t-h-e 
        -s-t-r-u-c-t-u-r-e-, -g-o-v-e-r-n-a-n-c-e-, -a-n-d 
        -p-e-r-f-o-r-m-a-n-c-e -o-f -t-h-e -F-u-n-d-. -T-h-e -s-t-u-d-y 
        -s-h-a-l-l -b-e -s-u-b-m-i-t-t-e-d -t-o -t-h-e 
        -P-r-e-s-i-d-e-n-t-. -S-u-c-h -s-t-u-d-y -s-h-a-l-l 
        -i-n-c-l-u-d-e -a-n -e-v-a-l-u-a-t-i-o-n -o-f -t-h-e 
        -o-v-e-r-a-l-l -p-e-r-f-o-r-m-a-n-c-e -o-f -t-h-e -F-u-n-d -i-n 
        -m-e-e-t-i-n-g -t-h-e -p-u-r-p-o-s-e-s -o-f -t-h-i-s -A-c-t 
        -a-n-d -a-n-y -r-e-c-o-m-m-e-n-d-a-t-i-o-n-s -o-f -t-h-e 
        -F-u-n-d -f-o-r -r-e-s-t-r-u-c-t-u-r-i-n-g -t-h-e -B-o-a-r-d-, 
        -a-l-t-e-r-i-n-g -p-r-o-c-e-d-u-r-e-s -u-n-d-e-r -w-h-i-c-h 
        -t-h-e -F-u-n-d -i-s -g-o-v-e-r-n-e-d-, -t-h-e -f-u-t-u-r-e 
        -r-o-l-e -o-f -t-h-e -F-u-n-d -i-n -a-d-d-r-e-s-s-i-n-g 
        -c-o-m-m-u-n-i-t-y -d-e-v-e-l-o-p-m-e-n-t-, -a-n-d -t-h-e 
        -a-b-i-l-i-t-y -o-f -t-h-e -F-u-n-d -t-o -b-e-c-o-m-e -a 
        -p-r-i-v-a-t-e-, -s-e-l-f---s-u-s-t-a-i-n-i-n-g -e-n-t-i-t-y 
        -c-a-p-a-b-l-e -o-f -f-u-l-f-i-l-l-i-n-g -t-h-e 
        -p-u-r-p-o-s-e-s -o-f -t-h-i-s -A-c-t-.
    -(-c-) -E-x-a-m-i-n-a-t-i-o-n -a-n-d -A-u-d-i-t-.----T-h-e 
-f-i-n-a-n-c-i-a-l -s-t-a-t-e-m-e-n-t-s -o-f -t-h-e -F-u-n-d -s-h-a-l-l 
-b-e -a-u-d-i-t-e-d -i-n -a-c-c-o-r-d-a-n-c-e -w-i-t-h -s-e-c-t-i-o-n 
-9-1-0-5 -o-f -t-i-t-l-e -3-1-, -U-n-i-t-e-d -S-t-a-t-e-s -C-o-d-e-, 
-e-x-c-e-p-t -t-h-a-t -a-u-d-i-t-s -r-e-q-u-i-r-e-d -b-y -s-e-c-t-i-o-n 
-9-1-0-5-(-a-) -o-f -t-h-a-t -t-i-t-l-e -s-h-a-l-l -b-e 
-p-e-r-f-o-r-m-e-d -a-n-n-u-a-l-l-y-.

-S-E-C-. -1-1-. -I-N-V-E-S-T-M-E-N-T -O-F -R-E-C-E-I-P-T-S -A-N-D 
              -P-R-O-C-E-E-D-S-.

    -A-n-y -d-i-v-i-d-e-n-d-s -o-n -e-q-u-i-t-y -i-n-v-e-s-t-m-e-n-t-s 
-a-n-d -p-r-o-c-e-e-d-s -f-r-o-m -t-h-e -d-i-s-p-o-s-i-t-i-o-n -o-f 
-i-n-v-e-s-t-m-e-n-t-s-, -d-e-p-o-s-i-t-s-, -o-r -m-e-m-b-e-r-s-h-i-p 
-s-h-a-r-e-s -t-h-a-t -a-r-e -r-e-c-e-i-v-e-d -b-y -t-h-e -F-u-n-d -a-s 
-a -r-e-s-u-l-t -o-f -a-s-s-i-s-t-a-n-c-e -p-r-o-v-i-d-e-d 
-p-u-r-s-u-a-n-t -t-o -s-e-c-t-i-o-n -7 -o-f -t-h-i-s -A-c-t -s-h-a-l-l 
-b-e -d-e-p-o-s-i-t-e-d -a-n-d -a-c-c-r-e-d-i-t-e-d -t-o -a-n 
-a-c-c-o-u-n-t -o-f -t-h-e -F-u-n-d -e-s-t-a-b-l-i-s-h-e-d -t-o 
-c-a-r-r-y -o-u-t -t-h-e -a-u-t-h-o-r-i-z-e-d -p-u-r-p-o-s-e-s -o-f 
-t-h-i-s -A-c-t-. -U-p-o-n -r-e-q-u-e-s-t -o-f -t-h-e -C-h-i-e-f 
-E-x-e-c-u-t-i-v-e -O-f-f-i-c-e-r-, -t-h-e -S-e-c-r-e-t-a-r-y -o-f 
-t-h-e -T-r-e-a-s-u-r-y -s-h-a-l-l -i-n-v-e-s-t -a-m-o-u-n-t-s 
-d-e-p-o-s-i-t-e-d -i-n -s-u-c-h -a-c-c-o-u-n-t -i-n -p-u-b-l-i-c 
-d-e-b-t -s-e-c-u-r-i-t-i-e-s -w-i-t-h -m-a-t-u-r-i-t-i-e-s 
-s-u-i-t-a-b-l-e -t-o -t-h-e -n-e-e-d-s -o-f -t-h-e -F-u-n-d-, -a-s 
-d-e-t-e-r-m-i-n-e-d -b-y -t-h-e -C-h-i-e-f -E-x-e-c-u-t-i-v-e 
-O-f-f-i-c-e-r-, -a-n-d -b-e-a-r-i-n-g -i-n-t-e-r-e-s-t -a-t -r-a-t-e-s 
-d-e-t-e-r-m-i-n-e-d -b-y -t-h-e -S-e-c-r-e-t-a-r-y -o-f -t-h-e 
-T-r-e-a-s-u-r-y-, -t-a-k-i-n-g -i-n-t-o -c-o-n-s-i-d-e-r-a-t-i-o-n 
-c-u-r-r-e-n-t -m-a-r-k-e-t -y-i-e-l-d-s -o-n -o-u-t-s-t-a-n-d-i-n-g 
-m-a-r-k-e-t-a-b-l-e -o-b-l-i-g-a-t-i-o-n-s -o-f -t-h-e -U-n-i-t-e-d 
-S-t-a-t-e-s -o-f -c-o-m-p-a-r-a-b-l-e -m-a-t-u-r-i-t-i-e-s-. 
-A-m-o-u-n-t-s -d-e-p-o-s-i-t-e-d -i-n-t-o -t-h-e -a-c-c-o-u-n-t -a-n-d 
-i-n-t-e-r-e-s-t -e-a-r-n-e-d -o-n -s-u-c-h -a-m-o-u-n-t-s 
-p-u-r-s-u-a-n-t -t-o -t-h-i-s -s-e-c-t-i-o-n -s-h-a-l-l -b-e 
-a-v-a-i-l-a-b-l-e -t-o -t-h-e -F-u-n-d -u-n-t-i-l -e-x-p-e-n-d-e-d-.

-S-E-C-. -1-2-. -A-U-T-H-O-R-I-Z-A-T-I-O-N -O-F 
              -A-P-P-R-O-P-R-I-A-T-I-O-N-S-.

    -(-a-) -I-n -G-e-n-e-r-a-l-.----T-h-e-r-e -a-r-e 
-a-u-t-h-o-r-i-z-e-d -t-o -b-e -a-p-p-r-o-p-r-i-a-t-e-d -t-o -t-h-e 
-F-u-n-d-, -t-o -r-e-m-a-i-n -a-v-a-i-l-a-b-l-e -u-n-t-i-l 
-e-x-p-a-n-d-e-d-, -$-6-0-,-0-0-0-,-0-0-0 -f-o-r -f-i-s-c-a-l -y-e-a-r 
-1-9-9-4-, -$-1-0-4-,-0-0-0-,-0-0-0 -f-o-r -f-i-s-c-a-l -y-e-a-r 
-1-9-9-5-, -$-1-0-7-,-0-0-0-,-0-0-0 -f-o-r -f-i-s-c-a-l -y-e-a-r 
-1-9-9-6-, -a-n-d -$-1-1-1-,-0-0-0-,-0-0-0 -f-o-r -f-i-s-c-a-l -y-e-a-r 
-1-9-9-7-, -o-r -s-u-c-h -g-r-e-a-t-e-r -s-u-m-s -a-s -m-a-y -b-e 
-a-p-p-r-o-p-r-i-a-t-e-d-, -t-o -c-a-r-r-y -o-u-t -t-h-e 
-p-u-r-p-o-s-e-s -o-f -t-h-e -A-c-t-.
    -(-b-) -A-d-m-i-n-i-s-t-r-a-t-i-v-e -E-x-p-e-n-s-e-s-.----T-h-e 
-F-u-n-d -m-a-y -s-e-t -a-s-i-d-e -u-p -t-o -$-1-0-,-0-0-0-,-0-0-0 
-e-a-c-h -f-i-s-c-a-l -y-e-a-r -t-o -p-a-y -a-d-m-i-n-i-s-t-r-a-t-i-v-e 
-c-o-s-t-s -a-n-d -e-x-p-e-n-s-e-s-.

-S-E-C-. -1-3-. -C-O-N-F-O-R-M-I-N-G -A-M-E-N-D-M-E-N-T-.

    -S-e-c-t-i-o-n -8-E-(-a-)-(-2-) -o-f -t-h-e -I-n-s-p-e-c-t-o-r 
-G-e-n-e-r-a-l -A-c-t -o-f -1-9-7-8 -(-5 -U-.-S-.-C-. -a-p-p-. -3-, 
-8-E-(-a-)-(-2-)-) -i-s -a-m-e-n-d-e-d -b-y -i-n-s-e-r-t-i-n-g 
-`-`-t-h-e -C-o-m-m-u-n-i-t-y -D-e-v-e-l-o-p-m-e-n-t -B-a-n-k-i-n-g 
-a-n-d -F-i-n-a-n-c-i-a-l -I-n-s-t-i-t-u-t-i-o-n-s -F-u-n-d-,-'-' 
-i-m-m-e-d-i-a-t-e-l-y -f-o-l-l-o-w-i-n-g -`-`-t-h-e -C-o-m-m-u-n-i-t-y 
-F-u-t-u-r-e-s -T-r-a-d-i-n-g -C-o-m-m-i-s-s-i-o-n-,-'-'-.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Community 
Development, Credit Enhancement, and Regulatory Improvement Act of 
1993''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

         TITLE I--COMMUNITY DEVELOPMENT AND CONSUMER PROTECTION

 Subtitle A--Community Development Banking and Financial Institutions 
                                  Act

Sec. 101. Short title.
Sec. 102. Findings and purposes.
Sec. 103. Definitions.
Sec. 104. Establishment of national fund for community development 
                            banking.
Sec. 105. Applications for assistance.
Sec. 106. Community partnerships.
Sec. 107. Selection of institutions.
Sec. 108. Assistance provided by the Fund.
Sec. 109. Community development training.
Sec. 110. Encouragement of private entities.
Sec. 111. Clearinghouse function.
Sec. 112. Recordkeeping, reports, and audits.
Sec. 113. Investment of receipts and proceeds.
Sec. 114. Inspector General.
Sec. 115. Capitalization assistance to enhance liquidity.
Sec. 116. Community development revolving loan fund for credit unions.
Sec. 117. Study of community development credit unions.
Sec. 118. Regulations.
Sec. 119. Authorization of appropriations.

            Subtitle B--Home Ownership and Equity Protection

Sec. 151. Consumer protections for high cost mortgages.
Sec. 152. Civil liability.
Sec. 153. Regulations; effective date.

               TITLE II--SMALL BUSINESS CAPITAL FORMATION

             Subtitle A--Small Business Loan Securitization

Sec. 201. Short title.
Sec. 202. Small business related security.
Sec. 203. Applicability of margin requirements.
Sec. 204. Borrowing in the course of business.
Sec. 205. Small business related securities as collateral.
Sec. 206. Investment by depository institutions.
Sec. 207. Preemption of State law.
Sec. 208. Insured depository institution capital requirements for 
                            transfers of small business loans.
Sec. 209. Transactions in small business related securities by employee 
                            benefit plans.
Sec. 210. Taxation of small business loan investment conduits.

             Subtitle B--Small Business Capital Enhancement

Sec. 251. Findings and purposes.
Sec. 252. Definitions.
Sec. 253. Approving States for participation.
Sec. 254. Participation agreements.
Sec. 255. Terms of participation agreements.
Sec. 256. Reports.
Sec. 257. Reimbursement by the Secretary.
Sec. 258. Reimbursement to the Secretary.
Sec. 259. Regulations.
Sec. 260. Authorization of appropriations.

       TITLE III--PAPERWORK REDUCTION AND REGULATORY IMPROVEMENT

Sec. 301. Incorporated definitions.
Sec. 302. Administrative consideration of burden with new regulations.
Sec. 303. Streamlining of regulatory requirements.
Sec. 304. Elimination of duplicative filings.
Sec. 305. Coordinated and unified examinations.
Sec. 306. Eighteen-month examination rule for certain small 
                            institutions.
Sec. 307. Call report simplification.
Sec. 308. Repeal of publication requirements.
Sec. 309. Regulatory appeals process.
Sec. 310. Electronic filing of currency transaction reports.
Sec. 311. Bank Secrecy Act publication requirements.
Sec. 312. Exemption of business loans from Real Estate Settlement 
                            Procedures Act requirements.
Sec. 313. Flexibility in choosing boards of directors.
Sec. 314. Holding company audit requirements.
Sec. 315. State regulation of real estate appraisals.
Sec. 316. Acceleration of effective date for interaffiliate 
                            transactions.
Sec. 317. Collateralization of public deposits.
Sec. 318. Elimination of stock valuation provision.
Sec. 319. Expedited procedures for forming a bank holding company.
Sec. 320. Exemption of certain holding company formations from 
                            registration under the Securities Act of 
                            1933.
Sec. 321. Reduction of post-approval waiting period for bank holding 
                            company acquisitions.
Sec. 322. Reduction of post-approval waiting period for bank mergers.
Sec. 323. Bankers' banks.
Sec. 324. Bank Service Corporation Act amendment.
Sec. 325. Merger transaction reports.
Sec. 326. Credit card accounts receivable sales.
Sec. 327. Limiting potential liability on foreign accounts.
Sec. 328. Amendments to outdated dividend provisions.
Sec. 329. Elimination of duplicative disclosures for home equity loans.
Sec. 330. Report on capital standards and their impact on the economy.
Sec. 331. Studies on the impact of the payment of interest on reserves.
Sec. 332. Study and report on streamlined lending process for consumer 
                            benefit.
Sec. 333. Repeal of outdated charter requirement for national banks.

         TITLE I--COMMUNITY DEVELOPMENT AND CONSUMER PROTECTION

 Subtitle A--Community Development Banking and Financial Institutions 
                                  Act

SEC. 101. SHORT TITLE.

    This subtitle may be cited as the ``Community Development Banking 
and Financial Institutions Act of 1993''.

SEC. 102. FINDINGS AND PURPOSES.

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

SEC. 103. DEFINITIONS.

    For purposes of this subtitle, the following definitions shall 
apply:
            (1) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency'' has the same meaning as 
        in section 3 of the Federal Deposit Insurance Act, and also 
        includes the National Credit Union Administration Board with 
        respect to insured credit unions.
            (2) Affiliate.--The term ``affiliate'' has the same meaning 
        as in section 2(k) of the Bank Holding Company Act of 1956.
            (3) 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) directly, through an affiliate, or 
                        through a community partnership, provides 
                        development services and equity investments or 
                        loans;
                            (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) Qualification of affiliates.--A subsidiary may 
                only qualify as a community development financial 
                institution if its parent company and the subsidiaries 
                thereof (on a consolidated basis) also qualify as 
                community development financial institutions.
            (4) 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, and an investment company 
        authorized to operate pursuant to the Small Business Investment 
        Act of 1958.
            (5) Community partnership.--The term ``community 
        partnership'' means an agreement between a community 
        development financial institution and a community partner to 
        provide development services and loans or equity investments to 
        an investment area or targeted population.
            (6) Depository institution holding company.--The term 
        ``depository institution holding company'' has the same meaning 
        as in section 3 of the Federal Deposit Insurance Act.
            (7) 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.
            (8) 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.
            (9) Insured credit union.--The term ``insured credit 
        union'' has the same meaning as in section 101(7) of the 
        Federal Credit Union Act.
            (10) Insured depository institution.--The term ``insured 
        depository institution'' has the same meaning as in section 3 
        of the Federal Deposit Insurance Act.
            (11) Investment area.--The term ``investment area'' means a 
        geographic area that--
                    (A)(i) meets objective criteria of economic 
                distress developed by the Community Development 
                Financial Institutions Fund, which may include the 
                percentage of low-income families or the extent of 
                poverty, the rate of unemployment or underemployment, 
                lag in population growth, and extent of blight and 
                disinvestment; and
                    (ii) has significant unmet needs for loans or 
                equity investments;
                    (B) is located in an empowerment zone or enterprise 
                community designated under section 1391 of the Internal 
                Revenue Code of 1986; or
                    (C) is located on an Indian reservation, as defined 
                in section 3(d) of the Indian Financing Act of 1974 or 
                section 4(10) of the Indian Child Welfare Act of 1978.
            (12) 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; 
                        and
                            (ii) 80 percent of the statewide 
                        nonmetropolitan area median income.
            (13) Parent company.--The term ``parent company'' means any 
        company that directly or indirectly controls another company.
            (14) Subsidiary.--The term ``subsidiary'' has the same 
        meaning as in section 3 of the Federal Deposit Insurance Act, 
        except that a community development financial institution that 
        is a corporation shall not be considered to be a subsidiary of 
        any insured depository institution or depository institution 
        holding company that controls less than 25 percent of the 
        voting shares of the corporation.
            (15) Targeted population.--The term ``targeted population'' 
        means low-income persons or persons who otherwise lack adequate 
        access to loans or equity investments.

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

    (a) Establishment.--
            (1) In general.--There is established a corporation to be 
        known as the Community Development Financial Institutions Fund 
        (hereafter in this subtitle referred to as the ``Fund'') that 
        shall have the duties and responsibilities specified by this 
        subtitle. The Fund shall have succession until dissolved. The 
        offices of the Fund shall be in Washington, D.C. The Fund shall 
        not be affiliated with or be within any other agency or 
        department of the Federal Government.
            (2) Wholly owned government corporation.--The Fund shall be 
        a wholly owned Government corporation in the executive branch 
        and shall be treated in all respects as an agency of the United 
        States, except as otherwise provided in this subtitle.
    (b) Management of Fund.--
            (1) Appointment of administrator and deputy 
        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. The President 
        may appoint a Deputy Administrator by and with the advice and 
        consent of the Senate. The Deputy Administrator shall serve as 
        the acting Administrator of the Fund during the absence or 
        disability of the Administrator or in the event of a vacancy in 
        the office of the Administrator.
            (2) Chief financial officer.--The Administrator shall 
        appoint a chief financial officer who shall oversee the 
        financial management activities of the Fund.
            (3) Other officers.--The Administrator may appoint such 
        other officers and employees of the Fund as the Administrator 
        determines to be necessary or appropriate.
    (c) General Powers.--In carrying out the functions of the Fund, the 
Administrator--
            (1) shall have all necessary and proper authority to carry 
        out this subtitle;
            (2) shall have the power to adopt, alter, and use a 
        corporate seal for the Fund, which shall be judicially noticed;
            (3) may adopt, amend, and repeal bylaws, rules, and 
        regulations governing the manner in which business of the Fund 
        may be conducted and such rules and regulations as may be 
        necessary or appropriate to implement this subtitle;
            (4) may enter into, perform, and enforce such agreements, 
        contracts, and transactions as may be deemed necessary or 
        appropriate to the conduct of activities authorized under this 
        subtitle;
            (5) may determine the character of and necessity for 
        expenditures of the Fund and the manner in which they shall be 
        incurred, allowed, and paid;
            (6) may utilize or employ the services of personnel of any 
        agency or instrumentality of the United States with the consent 
        of the agency or instrumentality concerned on a reimbursable or 
        nonreimbursable basis; and
            (7) may execute all instruments necessary or appropriate in 
        the exercise of any of the functions of the Fund under this 
        subtitle and 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.--The Administrator shall establish an 
        advisory board to be known as the Community Development 
        Advisory Board (hereafter in this subtitle referred to as the 
        ``Board'') in accordance with the provisions of the Federal 
        Advisory Committee Act.
            (2) Membership.--
                    (A) In general.--The Board shall consist of 5 
                private citizens who, collectively--
                            (i) represent community groups whose 
                        constituencies include targeted populations or 
                        residents of investment areas;
                            (ii) represent local or regional government 
                        interests;
                            (iii) have expertise in the operations and 
                        activities of insured depository institutions; 
                        and
                            (iv) have expertise in community 
                        development and lending.
                    (B) Representation.--Each of the categories 
                described in clauses (i) through (iv) of subparagraph 
                (A) shall be represented by not less than 1 member of 
                the Board.
            (3) Board function.--It shall be the function of the Board 
        to advise the Administrator on the policies of the Fund. The 
        Board shall not advise the Administrator on the granting or 
        denial of any particular application.
            (4) Terms of members.--
                    (A) In general.--Each member of the Board 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 and qualified.
            (5) Chairperson.--The Administrator shall appoint a 
        chairperson from among the members of the Board.
            (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) Conforming Amendments.--Section 9101(3) of title 31, United 
States Code, is amended--
            (1) by redesignating subparagraphs (B) through (M) as 
        subparagraphs (C) through (N), respectively; and
            (2) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) the Community Development Financial 
                Institutions Fund;''.
    (f) Government Corporation Control Act Exemption.--Section 9107(b) 
of title 31, United States Code, shall not apply to deposits of the 
Fund made pursuant to section 108.
    (g) Limitation of Fund and Federal Liability.--The liability of the 
Fund and the United States Government arising out of any investment in 
a community development financial institution in accordance with this 
subtitle shall be limited to the amount of the investment. The Fund 
shall be exempt from any assessments and other liabilities that may be 
imposed on controlling or principal shareholders by any Federal law or 
the law of any State, Territory, or the District of Columbia.
    (h) Prohibition on Issuance of Securities.--The Fund may not issue 
stock, bonds, debentures, notes, or other securities.
    (i) Compensation.--Title 5, United States Code, is amended--
            (1) in section 5314, by adding at the end the following:
            ``Administrator of the Community Development Financial 
        Institutions Fund.''; and
            (2) in section 5315, by adding at the end the following:
            ``Deputy Administrator of the Community Development 
        Financial Institutions Fund.''.
    (j) Assisted Institutions Not United States Instrumentalities.--A 
community development financial institution or other organization that 
receives assistance pursuant to this subtitle shall not be deemed to be 
an agency, department, or instrumentality of the United States.

SEC. 105. APPLICATIONS FOR ASSISTANCE.

    (a) Form and Procedures.--An application for assistance under this 
subtitle shall be submitted in such form and in accordance with such 
procedures as the Fund shall establish.
    (b) Minimum Requirements.--Except as provided in sections 106 and 
115, 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 
                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, and local 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; and
                    (E) a description of how the applicant will 
                coordinate with community organizations and financial 
                institutions which will provide equity investments, 
                loans, secondary markets, or other services to 
                investment areas or targeted populations;
            (3) to include a detailed description of the applicant's 
        plans and likely sources of funds to match the amount of 
        assistance requested from the Fund;
            (4) in the case of an applicant that has previously 
        received assistance under this subtitle, to demonstrate that 
        the applicant--
                    (A) has substantially met its performance goals and 
                otherwise carried out its responsibilities under this 
                subtitle and the assistance agreement; and
                    (B) will expand its operations into a new 
                investment area or to serve a new targeted population, 
                offer more 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;
                    (B) will expand its operations into a new 
                investment area or to serve a new targeted population, 
                offer more 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 may operate an 
outreach program to identify and provide information to potential 
applicants.

SEC. 106. COMMUNITY PARTNERSHIPS.

    (a) Application.--An application for assistance may be filed 
jointly by a community development financial institution and a 
community partner to carry out a community partnership.
    (b) Application Requirements.--The Fund shall require a community 
partnership application--
            (1) to meet the minimum requirements established for 
        community development financial institutions under section 
        105(b), except that the criteria specified in paragraphs (1) 
        and (2)(A) of section 105(b) shall not apply to the community 
        partner;
            (2) to describe how each coapplicant will participate in 
        carrying out the community partnership and how the partnership 
        will enhance activities serving the investment area or targeted 
        population; and
            (3) to demonstrate that the community partnership 
        activities are consistent with the strategic plan submitted by 
        the community development financial institution coapplicant.
    (c) Selection Criteria.--The Fund shall consider a community 
partnership application based on the selection criteria set out in 
section 107.
    (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 thereof.
    (e) Other Requirements and Limitations.--All other requirements and 
limitations imposed by this subtitle on a community development 
financial institution assisted under this subtitle shall apply (in the 
manner that the Fund determines to be appropriate) to assistance 
provided to carry out community partnerships. The Fund may establish 
additional guidelines and restrictions on the use of Federal funds to 
carry out community partnerships.

SEC. 107. SELECTION OF INSTITUTIONS.

    (a) Selection Criteria.--Except as provided in section 115, the 
Fund shall, in its sole discretion, select applicants 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 proposed 
        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 proposed activities will expand 
        economic opportunities within the investment areas or the 
        targeted populations;
            (8) whether the applicant is, or will become, an insured 
        depository institution or an insured credit union;
            (9) whether the applicant is, or will be, located--
                    (A) in an empowerment zone or enterprise community 
                designated under section 1391 of the Internal Revenue 
                Code of 1986; or
                    (B) on an Indian reservation, as defined in section 
                3(d) of the Indian Financing Act of 1974 or section 
                4(10) of the Indian Child Welfare Act of 1978;
            (10) the extent to which the applicant will increase its 
        resources through coordination with other institutions or 
        participation in a secondary market;
            (11) 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
            (12) other factors (such as the extent to which the 
        applicant has strong ties to the community that it will serve) 
        deemed to be appropriate by the Fund.
    (b) Geographic Diversity.--The Fund shall assist a geographically 
diverse group of applicants, including an appropriate mix of applicants 
from urban, rural, and Native American communities.

SEC. 108. ASSISTANCE PROVIDED BY THE FUND.

    (a) Forms of Assistance.--
            (1) In general.--The Fund may provide--
                    (A) financial assistance through equity 
                investments, deposits, credit union shares, loans, and 
                grants; and
                    (B) technical assistance--
                            (i) directly;
                            (ii) through grants; or
                            (iii) by contracting with organizations 
                        that possess expertise in community 
                        development, without regard to whether the 
                        organizations receive or are eligible to 
                        receive assistance under this subtitle.
            (2) 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. Such equity investments may provide for 
        convertibility to voting stock upon transfer by the Fund.
            (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 costs, as 
        defined in section 502 of the Congressional Budget Act of 1974, 
        are made in advance.
    (b) Uses of Financial Assistance.--
            (1) In general.--Financial assistance made available under 
        this subtitle may be used by assisted 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 opportunities shall only be 
                used for activities and lending products that serve 
                low-income people and are not offered by other lenders 
                in the area; and
                    (F) other businesses and activities deemed 
                appropriate by the Fund.
            (2) Limitations.--No assistance made available under this 
        subtitle may be expended by a community development financial 
        institution (or an organization receiving assistance under 
        section 115) to pay any person to influence or attempt to 
        influence any agency, elected official, officer, or employee of 
        a State or local government in connection with the making, 
        award, extension, continuation, renewal, amendment, or 
        modification of any State or local government contract, grant, 
        loan, or cooperative agreement (as such terms are defined in 
        section 1352 of title 31, United States Code).
    (c) Uses of Technical Assistance.--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.
    (d) Amount of Assistance.--
            (1) In general.--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 affiliates.
            (2) Exception.--Notwithstanding the limitations in 
        paragraph (1), in the case of an existing community development 
        financial institution that proposes to serve an investment area 
        or targeted population outside of any State and outside of any 
        metropolitan area presently served by the institution, the Fund 
        may provide not more than $7,500,000 of assistance to a 
        community development financial institution, in the aggregate, 
        during any 3-year period, of which not less than $2,500,000 
        shall be used to establish affiliates to serve the new 
        investment area or targeted population.
            (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.--Assistance other than technical 
assistance shall be matched with funds from sources other than the 
Federal Government on the basis of not less than 1 dollar for each 
dollar provided by the Fund. Such matching funds shall be at least 
comparable in form and value to the assistance provided by the Fund. 
The Fund may reduce by up to 50 percent the matching requirements for 
applicants with severe constraints on available sources of matching 
funds, except that in any fiscal year, not more than 25 percent of 
funds disbursed by the Fund may have a reduced match. 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.
    (f) Terms and Conditions.--
            (1) Soundness of unregulated institutions.--The Fund 
        shall--
                    (A) ensure, to the maximum extent practicable, that 
                each community development financial institution (other 
                than an insured community development financial 
                institution or depository institution holding company) 
                assisted under this subtitle is financially and 
                managerially sound and maintains appropriate internal 
                controls; and
                    (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 112(a)(4).
            (2) Consultation with the appropriate banking regulator.--
        Prior to providing assistance to an insured community 
        development financial institution, the Fund shall consult with 
        the appropriate Federal banking agency.
            (3) Assistance agreement.--
                    (A) In general.--Before providing any assistance 
                under this subtitle, the Fund and each community 
                development financial institution to be assisted shall 
                enter into an agreement that requires the institution 
                to comply with performance goals and abide by other 
                terms and conditions pertinent to assistance received 
                under this subtitle.
                    (B) Performance goals.--Performance goals shall be 
                negotiated between the Fund and each community 
                development financial institution receiving assistance 
                based upon the strategic plan submitted pursuant to 
                section 105(b)(2). Such goals may be modified with the 
                consent of the parties, or as provided in subparagraph 
                (C). Performance goals for insured community 
                development financial institutions shall be determined 
                in consultation with the appropriate Federal banking 
                agency.
                    (C) Sanctions.--The agreement shall provide that, 
                in the event of fraud, mismanagement, noncompliance 
                with this subtitle, or noncompliance with the terms of 
                the agreement, the Fund, in its discretion, may--
                            (i) revoke approval of the application;
                            (ii) terminate or reduce future assistance;
                            (iii) require repayment of assistance;
                            (iv) require changes to the performance 
                        goals imposed pursuant to subparagraph (B);
                            (v) bar an applicant from reapplying for 
                        assistance from the Fund;
                            (vi) require changes to the strategic plan 
                        submitted pursuant to section 105(b)(2); and
                            (vii) take such other actions as the Fund 
                        deems appropriate.
                    (D) Insured community development financial 
                institutions.--In the case of an insured community 
                development financial institution, the Fund shall 
                notify the appropriate Federal banking agency not less 
                than 15 days before imposing sanctions pursuant to this 
                paragraph and shall not impose such sanctions if the 
                agency disapproves, with an explanation in writing, 
                during that 15-day period.
    (g) Authority To Sell Equity Investments and Loans.--The Fund may, 
at any time, sell its equity investments and loans, but the Fund shall 
retain the power to enforce limitations on assistance entered into in 
accordance with the requirements of this subtitle until the performance 
goals related to the investment or loan have been met.
    (h) No Authority To Limit Supervision and Regulation.--Nothing in 
this subtitle shall affect any authority of the appropriate Federal 
banking agency to supervise and regulate any institution or company.

SEC. 109. COMMUNITY DEVELOPMENT TRAINING.

    (a) In General.--The Fund may operate a training program to 
increase the capacity and expertise of community development financial 
institutions and other members of the financial services industry to 
undertake community development activities (hereafter in this subtitle 
referred to as the ``training program'').
    (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 implementing 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 described in this 
section directly or through a contract with other organizations. The 
Fund may contract to provide the training with organizations that 
possess special expertise in community development, without regard to 
whether the organizations receive or are eligible to receive assistance 
under this subtitle.
    (e) Fees.--The Fund, as it deems appropriate, may charge fees for 
participation in training services to offset the cost of providing the 
services.

SEC. 110. ENCOURAGEMENT OF PRIVATE ENTITIES.

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

SEC. 111. CLEARINGHOUSE FUNCTION.

    (a) Establishment.--The Fund may establish and maintain an 
information clearinghouse in coordination with other Federal 
departments or agencies and community development financial 
institutions to--
            (1) collect, compile, and analyze information pertinent to 
        community development financial institutions that will assist 
        in creating, developing, expanding, and preserving these 
        institutions; and
            (2) provide information on financial, technical, and 
        management assistance, data on the activities of community 
        development financial institutions, regulations, and other 
        information that may promote the purposes of this subtitle.
    (b) Costs.--The cost of maintaining the clearinghouse shall be 
shared equally by the Fund and each department or agency involved in 
maintaining the clearinghouse.

SEC. 112. RECORDKEEPING, REPORTS, AND AUDITS.

    (a) Recordkeeping.--
            (1) In general.--A community development financial 
        institution receiving assistance from the Fund shall keep such 
        records, for such periods as may be prescribed, as may be 
        necessary to disclose the manner in which any assistance under 
        this subtitle is used and to demonstrate compliance with the 
        requirements of this subtitle.
            (2) Access to records.--The Fund shall have access on 
        demand, for the purpose of determining compliance with this 
        subtitle, to any records of a community development financial 
        institution that receives assistance from the Fund.
            (3) 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.
            (4) Reporting.--
                    (A) Annual reports.--The Fund shall require each 
                community development financial institution receiving 
                assistance under this subtitle to submit an annual 
                report to the Fund on its activities, its financial 
                condition, and its success in meeting performance 
                goals, in satisfying the terms and conditions of its 
                assistance agreement, and in complying with other 
                requirements of this subtitle in such form and manner 
                as the Fund shall specify.
                    (B) Availability of reports.--The Fund, after 
                deleting or redacting any material, as appropriate to 
                protect privacy or proprietary interests, shall make 
                such reports available for public inspection.
    (b) Annual Report by the Fund.--The Fund shall conduct an annual 
evaluation of the activities carried out by the Fund and the community 
development financial institutions assisted pursuant to this subtitle, 
and shall submit a report of its findings to the President and the 
Congress not later than 120 days after the end of each fiscal year of 
the Fund. The report shall include financial statements audited in 
accordance with subsection (d).
    (c) Studies.--
            (1) Optional studies.--The Fund may conduct such studies as 
        the Fund determines necessary to further the purpose of this 
        subtitle and to facilitate investment in distressed 
        communities. The findings of any studies conducted pursuant to 
        this paragraph shall be included in the report required by 
        subsection (b).
            (2) Investment, governance, and role of fund.--Thirty 
        months after the appointment and qualification of the 
        Administrator, the Comptroller General shall submit to the 
        President and the Congress a study evaluating the structure, 
        governance, and performance of the Fund.
    (d) Examination and Audit.--The financial statements of the Fund 
shall be audited in accordance with section 9105 of title 31, United 
States Code, except that audits required by section 9105(a) of such 
title shall be performed annually.

SEC. 113. INVESTMENT OF RECEIPTS AND PROCEEDS.

    (a) Establishment of Account.--Any dividends on equity investments 
and proceeds from the disposition of investments, deposits, or credit 
union shares that are received by the Fund as a result of assistance 
provided pursuant to section 108, and any fees received pursuant to 
section 109(e) shall be deposited and accredited to an account of the 
Fund in the United States Treasury (hereafter in this section referred 
to as ``the account'') established to carry out the purpose of this 
subtitle.
    (b) Investments.--Upon request of the Administrator, the Secretary 
of the Treasury shall invest amounts deposited in the account in public 
debt securities with maturities suitable to the needs of the Fund, as 
determined by the Administrator, and bearing interest at rates 
determined by the Secretary of the Treasury, comparable to current 
market yields on outstanding marketable obligations of the United 
States of similar maturities.
    (c) Availability.--Amounts deposited into the account and interest 
earned on such amounts pursuant to this section shall be available to 
the Fund until expended.

SEC. 114. INSPECTOR GENERAL.

    (a) Establishment.--Section 11 of the Inspector General Act of 1978 
(5 U.S.C. App. 11) is amended--
            (1) in paragraph (1), by inserting ``; the Administrator of 
        the Community Development Financial Institutions Fund;'' before 
        ``and the chief''; and
            (2) in paragraph (2), by inserting ``the Community 
        Development Financial Institutions Fund,'' after ``the Agency 
        for International Development,''.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for the operation of the 
Office of Inspector General established by the amendments made by 
subsection (a).

SEC. 115. CAPITALIZATION ASSISTANCE TO ENHANCE LIQUIDITY.

    (a) Assistance.--
            (1) In general.--The Fund may provide assistance for the 
        purpose of providing capital to organizations that will 
        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 $1 for 
                        each dollar provided by the Fund; and
                            (iii) that are comparable in form and value 
                        to the assistance provided by the Fund.
            (2) Limitation on other assistance.--An organization that 
        receives assistance under this section may not receive other 
        financial or technical assistance under this subtitle.
    (b) Selection.--The selection of organizations to receive 
assistance under this section shall be at the discretion of the Fund 
and in accordance with criteria established by the Fund. In 
establishing such criteria, the Fund shall take into account the 
criteria contained in sections 105(b) and 107, as appropriate.
    (c) Amount of Assistance.--The Fund may provide a total of not more 
than $5,000,000 of assistance to an organization 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.--
            (1) In general.--Organizations that receive assistance from 
        the Fund in accordance with this section shall--
                    (A) submit to the Fund not less than once in every 
                18-month period, financial statements audited by an 
                independent certified public accountant;
                    (B) submit an annual report on its activities; and
                    (C) keep such records as may be necessary to 
                disclose the manner in which any assistance under this 
                section is used.
            (2) Access.--The Fund shall have access on demand, for the 
        purposes of determining compliance with this section, to any 
        records of such organizations.
    (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, territory, or the 
        District of Columbia.
            (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 to an 
organization assisted under this section shall be used by the seller 
for community development purposes.

SEC. 116. COMMUNITY DEVELOPMENT REVOLVING LOAN FUND FOR CREDIT UNIONS.

    (a) Repeal.--Section 120 of the Federal Credit Union Act (12 U.S.C. 
1766) is amended by striking subsection (k).
    (b) Revolving Loan Fund.--The Federal Credit Union Act (12 U.S.C. 
1751 et seq.) is amended by inserting after section 129 the following 
new section:

``SEC. 130. COMMUNITY DEVELOPMENT REVOLVING LOAN FUND FOR CREDIT 
              UNIONS.

    ``(a) In General.--The Board may exercise the authority granted to 
it by the Community Development Credit Union Revolving Loan Fund 
Transfer Act, including any additional appropriation made or earnings 
accrued, subject only to this section and to regulations prescribed by 
the Board.
    ``(b) Investment.--The Board may invest any idle Fund moneys in 
United States Treasury securities. Any interest accrued on such 
securities shall become a part of the Fund.
    ``(c) Loans.--The Board may require that any loans made from the 
Fund be matched by increased shares in the borrower credit union.
    ``(d) Interest.--Interest earned by the Fund may be allocated by 
the Board for technical assistance to community development credit 
unions, subject to an appropriations Act.
    ``(e) Definition.--As used in this section, the term `Fund' means 
the Community Development Credit Union Revolving Loan Fund.''.

SEC. 117. STUDY OF COMMUNITY DEVELOPMENT CREDIT UNIONS.

    (a) In General.--The National Credit Union Administration Board, in 
consultation with representatives of the credit union industry, shall 
conduct a study of community development credit activities by credit 
unions. In conducting the study, the Board shall consider--
            (1) the role of such institutions in providing credit and 
        related financial services to inner city and rural areas;
            (2) the failure rate of such institutions in the past;
            (3) the desirability of establishing a special examination 
        force for community development credit unions and mentor 
        programs;
            (4) the desirability of establishing a clearinghouse for 
        the recirculation of startup equipment and furniture for 
        community development credit unions; and
            (5) appropriate startup and permanent financing programs 
        for such credit unions.
    (b) Report.--Not later than October 1, 1994, the National Credit 
Union Administration Board shall issue a report to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Banking, Finance and Urban Affairs of the House of Representatives on 
the study conducted under subsection (a) and the regulatory and 
legislative changes that may be necessary to ensure that community 
development activity by credit unions becomes and remains viable and 
productive.

SEC. 118. REGULATIONS.

    Not later than 180 days after the appointment and qualification of 
the Administrator, the Fund shall issue such regulations as may be 
necessary to carry out this subtitle.

SEC. 119. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--To carry out this subtitle, there are authorized 
to be appropriated to the Fund, to remain available until expended--
            (1) $60,000,000 for fiscal year 1994;
            (2) $104,000,000 for fiscal year 1995;
            (3) $107,000,000 for fiscal year 1996; and
            (4) $111,000,000 for fiscal year 1997.
    (b) Administrative Expenses.--Of amounts authorized to be 
appropriated to the Fund--
            (1) not more than $5,500,000 may be used by the Fund in 
        each fiscal year to pay the administrative costs and expenses 
        of the Fund; and
            (2) not more than $50,000 may be used by the Fund in each 
        fiscal year to provide for administrative costs and expenses 
        described in section 104(d)(8).
    (c) 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) $2,000,000 for fiscal year 1994;
            (2) $1,000,000 for fiscal year 1995;
            (3) $1,000,000 for fiscal year 1996; and
            (4) $1,000,000 for fiscal year 1997.
    (d) Capitalization Assistance.--Not more than 5 percent of the 
amounts authorized to be appropriated under subsection (a) may be used 
as provided in section 115.
    (e) Budgetary Treatment.--Amounts authorized to be appropriated 
under this section shall be subject to discretionary spending caps, as 
provided in section 601 of the Congressional Budget Act of 1974, and 
therefore shall reduce by an equal amount funds made available for 
other discretionary spending programs.

            Subtitle B--Home Ownership and Equity Protection

SEC. 151. CONSUMER PROTECTIONS FOR HIGH COST MORTGAGES.

    (a) Definition.--Section 103 of the Truth in Lending Act (15 U.S.C. 
1602) is amended by adding at the end the following new subsection:
    ``(aa)(1) The term `high cost mortgage' means a consumer credit 
transaction, other than a residential mortgage transaction or a 
transaction under an open end credit plan, that is secured by a 
consumer's principal dwelling, if--
            ``(A) the annual percentage rate at consummation of the 
        transaction will exceed by more than 10 percentage points the 
        rate of interest on Treasury securities having comparable 
        periods of maturity on the fifteenth day of the month 
        immediately preceding the month in which the loan is 
        consummated; or
            ``(B) the total points and fees payable by the consumer at 
        or before closing will exceed the greater of--
                    ``(i) 8 percent of the total loan amount; or
                    ``(ii) $400.
    ``(2) The amount specified in paragraph (1)(B)(ii) shall be 
adjusted annually on January 1 by the annual percentage change in the 
Consumer Price Index, as reported on June 1 of the year preceding such 
adjustment.
    ``(3) For purposes of paragraph (1)(B), points and fees shall 
include--
            ``(A) all items included in the finance charge except 
        interest and the time-price differential;
            ``(B) all compensation paid to mortgage brokers;
            ``(C) all direct and indirect compensation received by the 
        creditor in connection with credit insurance; and
            ``(D) each of the charges listed in section 106(e) (except 
        an escrow for future payment of taxes), unless--
                    ``(i) the charge is reasonable;
                    ``(ii) the creditor receives no direct or indirect 
                compensation; and
                    ``(iii) the charge is paid to a third party 
                unaffiliated with the creditor.''.
    (b) Material Disclosures.--Section 103(u) of the Truth in Lending 
Act (15 U.S.C. 1602(u)) is amended--
            (1) by striking ``and the due dates'' and inserting ``, the 
        due dates''; and
            (2) by inserting before the period ``, and the disclosures 
        for high cost mortgages required by section 129(a)''.
    (c) Definition of Creditor Clarified.--Section 103(f) of the Truth 
in Lending Act (15 U.S.C. 1602(f)) is amended by adding at the end the 
following: ``Any person who originates 2 or more high cost mortgages in 
any 12-month period or any person who originates 1 or more high cost 
mortgages through a mortgage broker shall be considered to be a 
creditor for purposes of this title.''.
    (d) Disclosures Required and Certain Terms Prohibited.--The Truth 
in Lending Act (15 U.S.C. 1601 et seq.) is amended by inserting after 
section 128 the following new section:

``SEC. 129. REQUIREMENTS FOR HIGH COST MORTGAGES.

    ``(a) Disclosures.--
            ``(1) Specific disclosures.--In addition to other 
        disclosures required under this title, for each high cost 
        mortgage, the creditor shall provide the following disclosures 
        in conspicuous type size:
                    ``(A) `You are not required to complete this 
                agreement merely because you have received these 
                disclosures or have signed a loan application.'
                    ``(B) `If you obtain this loan, the lender will 
                have a mortgage on your home. You could lose your home, 
                and any money you have put into it, if you do not meet 
                your obligations under the loan.'.
            ``(2) Annual percentage rate.--In addition to the 
        disclosures required under paragraph (1), the creditor shall 
        disclose--
                    ``(A) the annual percentage rate of the loan and 
                the amount of the regular monthly payment; or
                    ``(B) in the case of a variable rate loan, the 
                annual percentage rate of the loan, a statement that 
                the interest rate and monthly payment may increase, and 
                the amount of the maximum possible monthly payment.
    ``(b) Time of Disclosures.--
            ``(1) In general.--The disclosures required by this section 
        shall be given not less than 3 business days prior to 
        consummation of the transaction.
            ``(2) New disclosures required.--After providing the 
        disclosures required by this section, a creditor may not change 
        the terms of the loan if such changes make the disclosures 
        inaccurate, unless new disclosures are provided that meet the 
        requirements of this section.
            ``(3) Modifications.--The Board may, if it finds that such 
        action is necessary to permit homeowners to meet bona fide 
        personal financial emergencies, prescribe regulations 
        authorizing the modification or waiver of rights created under 
        this subsection, to the extent and under the circumstances set 
        forth in those regulations.
    ``(c) No Prepayment Penalty.--
            ``(1) In general.--Except as provided in paragraph (4), a 
        high cost mortgage may not contain terms under which a consumer 
        must pay a prepayment penalty for paying all or part of the 
        principal of the loan prior to the date on which such principal 
        is due. If the date of maturity of the high cost mortgage is 
        accelerated for any reason, and the consumer is entitled to a 
        rebate of interest, computation of the rebate amount shall 
        comply with paragraph (2). No high cost mortgage shall provide 
        for a default interest rate that is higher than the interest 
        rate provided by the note for the loan prior to default.
            ``(2) Rebate computation.--For purposes of this subsection, 
        any method of computing rebates of interest that is less 
        favorable to the consumer than the actuarial method (as defined 
        in section 933 of the Housing and Community Development Act of 
        1992) using simple interest is a prepayment penalty.
            ``(3) Certain other fees prohibited.--An agreement to 
        refinance a high cost mortgage by the same creditor or an 
        affiliate of the creditor may not require the consumer to pay 
        points, discount fees, or prepaid finance charges on the 
        portion of the loan refinanced.
            ``(4) Exception.--A high cost mortgage may include terms 
        under which a consumer is required to pay not more than 1 
        month's interest as a penalty if the consumer prepays the 
        principal of the loan within 90 days of origination.
    ``(d) No Balloon Payments.--A high cost mortgage may not include 
terms under which the aggregate amount of the regular periodic payments 
would not fully amortize the outstanding principal balance.
    ``(e) No Negative Amortization.--A high cost mortgage may not 
include terms under which the outstanding principal balance will 
increase at any time over the course of the loan because the regular 
periodic payments do not cover the full amount of interest due.
    ``(f) No Prepaid Payments.--A high cost mortgage may not include 
terms under which more than 2 periodic payments required under the loan 
are consolidated and paid in advance from the loan proceeds provided to 
the consumer.
    ``(g) Consequence of Failure To Comply.--Any high cost mortgage 
loan that contains a provision prohibited by this section shall be 
deemed a failure to deliver the material disclosures required under 
this title, for the purpose of section 125.
    ``(h) Definition.--For purposes of this section, the term 
`affiliate' has the same meaning as in section 2(k) of the Bank Holding 
Company Act of 1956.
    ``(i) Discretionary Regulatory Authority of Board.--
            ``(1) Exemptions.--The Board may, by regulation or order, 
        exempt specific mortgage products or categories of mortgages 
        from any or all of the prohibitions specified in subsections 
        (c) through (f), if the Board finds that the exemption--
                    ``(A) is in the interest of the borrowing public; 
                and
                    ``(B) will apply only to products that maintain and 
                strengthen home ownership and equity protection.
            ``(2) Prohibitions.--The Board, by regulation or order, 
        shall prohibit any specific acts or practices in connection 
        with high cost mortgages that the Board finds to be unfair, 
        deceptive, or designed to evade the provisions of this 
        section.''.
    (e) Conforming Amendments.--
            (1) Table of sections.--The table of sections at the 
        beginning of chapter 2 of the Truth in Lending Act is amended 
        by striking the item relating to section 129 and inserting the 
        following:

``129. Requirements for high cost mortgages.''.
            (2) Truth in lending act.--Section 105(a) of the Truth in 
        Lending Act (15 U.S.C. 1604(a)) is amended in the second 
        sentence, by striking ``These'' and inserting ``Except in the 
        case of a high cost mortgage, as defined in section 103(aa), 
        these''.

SEC. 152. CIVIL LIABILITY.

    (a) Damages.--Section 130(a) of the Truth in Lending Act (15 U.S.C. 
1640(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (2)(B);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) in the case of a failure to comply with any 
        requirement under section 129, an amount equal to the sum of 
        all finance charges and fees paid by the consumer, unless the 
        creditor demonstrates that the failure to comply is not 
        material.''.
    (b) State Attorney General Enforcement.--Section 130(e) of the 
Truth in Lending Act (15 U.S.C. 1640(e)) is amended by adding at the 
end the following: ``An action to enforce a violation of section 129 
may also be brought by the appropriate State attorney general in any 
appropriate United States district court, or any other court of 
competent jurisdiction, not later than 3 years after the date on which 
the violation occurs. The State attorney general shall provide prior 
written notice of any such civil action to the Federal agency 
responsible for enforcement under section 108 and shall provide the 
agency with a copy of the complaint. If prior notice is not feasible, 
the State attorney general shall provide notice to such agency 
immediately upon instituting the action. The Federal agency may--
            ``(1) intervene in the action;
            ``(2) upon intervening--
                    ``(A) remove the action to the appropriate United 
                States district court, if it was not originally brought 
                there; and
                    ``(B) be heard on all matters arising in the 
                action; and
            ``(3) file a petition for appeal.''.
    (c) Assignee Liability.--Section 131 of the Truth in Lending Act 
(15 U.S.C. 1641) is amended by adding at the end the following new 
subsection:
    ``(d) High Cost Mortgages.--
            ``(1) In general.--In addition to any other liability 
        imposed under this title, any person who purchases or is 
        otherwise assigned a high cost mortgage shall be subject to all 
        claims and defenses with respect to the mortgage that the 
        consumer could assert against the creditor of the mortgage.
            ``(2) Damages.--Relief provided as a result of liability 
        imposed under paragraph (1) shall be limited to the sum of--
                    ``(A) the amount of all remaining indebtedness; and
                    ``(B) the total amount paid by the consumer in 
                connection with the transaction.
            ``(3) Notice.--Any person who sells or otherwise assigns a 
        high cost mortgage shall include a prominent notice of the 
        potential liability under this subsection as determined by the 
        Board.''.

SEC. 153. REGULATIONS; EFFECTIVE DATE.

    (a) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Board of Governors of the Federal Reserve 
System shall issue such regulations as may be necessary to carry out 
this subtitle.
    (b) Effective Date.--This subtitle, and the amendments made by this 
subtitle, shall apply to every high cost mortgage (as defined in 
section 103(aa) of the Truth in Lending Act, as added by section 151(a) 
of this Act) consummated on or after the date which is 60 days after 
the promulgation of final regulations under subsection (a).

               TITLE II--SMALL BUSINESS CAPITAL FORMATION

             Subtitle A--Small Business Loan Securitization

SEC. 201. SHORT TITLE.

    This subtitle may be cited as the ``Small Business Loan 
Securitization and Secondary Market Enhancement Act of 1993''.

SEC. 202. SMALL BUSINESS RELATED SECURITY.

    (a) Definition.--Section 3(a) of the Securities Exchange Act of 
1934 (15 U.S.C. 78c(a)) is amended by adding at the end the following 
new paragraph:
            ``(53)(A) The term `small business related security' means 
        a security that is rated in 1 of the 4 highest rating 
        categories by at least 1 nationally recognized statistical 
        rating organization, and either--
                    ``(i) represents an interest in 1 or more 
                promissory notes evidencing the indebtedness of a small 
                business concern and originated by an insured 
                depository institution, insured credit union, insurance 
                company, or similar institution which is supervised and 
                examined by a Federal or State authority, or a finance 
                company; or
                    ``(ii) is secured by an interest in 1 or more 
                promissory notes (with or without recourse to the 
                issuer) and provides for payments of principal in 
                relation to payments, or reasonable projections of 
                payments, on notes described in clause (i).
            ``(B) For purposes of this paragraph--
                    ``(i) an `interest in a promissory note' includes 
                ownership rights, certificates of interest or 
                participation in such notes, and rights designed to 
                assure servicing of such notes, or the receipt or 
                timely receipt of amounts payable under such notes;
                    ``(ii) the term `small business concern' has the 
                same meaning as in section 3 of the Small Business Act;
                    ``(iii) the term `insured depository institution' 
                has the same meaning as in section 3 of the Federal 
                Deposit Insurance Act; and
                    ``(iv) the term `insured credit union' has the same 
                meaning as in section 101 of the Federal Credit Union 
                Act.''.
    (b) Technical Amendment.--Section 3(a) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78c(a)) is amended by redesignating paragraph 
(51) defining the term ``foreign financial regulatory authority'' as 
paragraph (52) and inserting such paragraph after paragraph (51), 
defining the term ``penny stocks''.

SEC. 203. APPLICABILITY OF MARGIN REQUIREMENTS.

    Section 7(g) of the Securities Exchange Act of 1934 (15 U.S.C. 
78g(g)) is amended by inserting ``or a small business related 
security'' after ``mortgage related security''.

SEC. 204. BORROWING IN THE COURSE OF BUSINESS.

    Section 8(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
78h(a)) is amended in the last sentence by inserting ``or a small 
business related security'' after ``mortgage related security''.

SEC. 205. SMALL BUSINESS RELATED SECURITIES AS COLLATERAL.

    Clause (ii) of section 11(d)(1) of the Securities Exchange Act of 
1934 (15 U.S.C. 78k(d)(1)) is amended by inserting ``or any small 
business related security'' after ``mortgage related security''.

SEC. 206. INVESTMENT BY DEPOSITORY INSTITUTIONS.

    (a) Home Owners' Loan Act Amendment.--Section 5(c)(1) of the Home 
Owners' Loan Act (12 U.S.C. 1464(c)(1)) is amended by adding at the end 
the following new subparagraph:
                    ``(S) Small business related securities.--
                Investments in small business related securities (as 
                defined in section 3(a)(53) of the Securities Exchange 
                Act of 1934), subject to such regulations as the 
                Director may prescribe, including regulations 
                concerning the minimum size of the issue (at the time 
                of the initial distribution), the minimum aggregate 
                sales price, or both.''.
    (b) Credit Unions.--Section 107(15) of the Federal Credit Union Act 
(12 U.S.C. 1757(15)) is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by inserting ``or'' at the end; 
        and
            (3) by adding at the end the following new subparagraph:
                    ``(C) are small business related securities (as 
                defined in section 3(a)(53) of the Securities Exchange 
                Act of 1934), subject to such regulations as the Board 
                may prescribe, including regulations prescribing the 
                minimum size of the issue (at the time of the initial 
                distribution), the minimum aggregate sales price, or 
                both;''.
    (c) National Banking Associations.--Section 5136 of the Revised 
Statutes (12 U.S.C. 24) is amended in the last sentence in the first 
full paragraph of paragraph Seventh, by striking ``or (B) are mortgage 
related securities'' and inserting the following: ``(B) are small 
business related securities (as defined in section 3(a)(53) of the 
Securities Exchange Act of 1934); or (C) are mortgage related 
securities''.

SEC. 207. PREEMPTION OF STATE LAW.

    (a) In General.--Section 106(a)(1) of the Secondary Mortgage Market 
Enhancement Act of 1984 (15 U.S.C. 77r-1(a)(1)) is amended--
            (1) by striking ``or'' at the end of subparagraph (B);
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) small business related securities (as defined 
                in section 3(a)(53) of the Securities Exchange Act of 
                1934), or''.
    (b) Obligations of the United States.--Section 106(a)(2) of the 
Secondary Mortgage Market Enhancement Act of 1984 (15 U.S.C. 77r-
1(a)(2)) is amended--
            (1) by striking ``or'' at the end of subparagraph (B);
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) small business related securities (as defined 
                in section 3(a)(53) of the Securities Exchange Act of 
                1934), or''.
    (c) Preemption of State Laws.--Section 106(c) of the Secondary 
Mortgage Market Enhancement Act of 1984 (15 U.S.C. 77r-1(c)) is 
amended--
            (1) in the first sentence, by striking ``or that'' and 
        inserting ``, that''; and
            (2) by inserting ``, or that are small business related 
        securities (as defined in section 3(a)(53) of the Securities 
        Exchange Act of 1934)'' before ``shall be exempt''.
    (d) Implementation.--Section 106 of the Secondary Mortgage Market 
Enhancement Act of 1984 (15 U.S.C. 77r-1) is amended by adding at the 
end the following new subsection:
    ``(d) Implementation.--
            ``(1) Limitation.--The provisions of subsections (a) and 
        (b) concerning small business related securities shall not 
        apply with respect to a particular person, trust, corporation, 
        partnership, association, business trust, or business entity or 
        class thereof in any State that, prior to the expiration of 7 
        years after the date of enactment of this subsection, enacts a 
        statute that specifically refers to this section and either 
        prohibits or provides for a more limited authority to purchase, 
        hold, or invest in such small business related securities by 
        any person, trust, corporation, partnership, association, 
        business trust, or business entity or class thereof than is 
        provided in this section. The enactment by any State of any 
        statute of the type described in the preceding sentence shall 
        not affect the validity of any contractual commitment to 
        purchase, hold, or invest that was made prior to such 
        enactment, and shall not require the sale or other disposition 
        of any small business related securities acquired prior to the 
        date of such enactment.
            ``(2) State registration or qualification requirements.--
        Any State may, not later than 7 years after the date of 
        enactment of this subsection, enact a statute that specifically 
        refers to this section and requires registration or 
        qualification of any small business related securities on terms 
        that differ from those applicable to any obligation issued by 
        the United States.''.

SEC. 208. INSURED DEPOSITORY INSTITUTION CAPITAL REQUIREMENTS FOR 
              TRANSFERS OF SMALL BUSINESS LOANS.

    (a) Accounting Principles.--The accounting principles applicable to 
the transfer of a small business loan with recourse contained in 
reports or statements required to be filed with Federal banking 
agencies by a qualified insured depository institution shall be 
consistent with generally accepted accounting principles.
    (b) Capital and Reserve Requirements.--With respect to the transfer 
of a small business loan with recourse that is a sale under generally 
accepted accounting principles, each qualified insured depository 
institution shall--
            (1) establish and maintain a reserve equal to an amount 
        sufficient to meet the reasonable estimated liability of the 
        institution under the recourse arrangement; and
            (2) include, for purposes of applicable capital standards 
        and other capital measures, only the amount of the retained 
        recourse in the risk-weighted assets of the institution.
    (c) Qualified Institutions Criteria.--An insured depository 
institution is a qualified insured depository institution for purposes 
of this section if, without regard to the accounting principles or 
capital requirements referred to in subsections (a) and (b), the 
institution is--
            (1) well capitalized; or
            (2) with the approval, by regulation or order, of the 
        appropriate Federal banking agency, adequately capitalized.
    (d) Aggregate Amount of Recourse.--The total outstanding amount of 
recourse retained by a qualified insured depository institution with 
respect to transfers of small business loans under subsections (a) and 
(b) shall not exceed--
            (1) 15 percent of the risk-based capital of the 
        institution; or
            (2) such greater amount, as established by the appropriate 
        Federal banking agency by regulation or order.
    (e) Institutions That Cease To Be Qualified or Exceed Aggregate 
Limits.--If an insured depository institution ceases to be a qualified 
insured depository institution or exceeds the limits under subsection 
(d), this section shall remain applicable to any transfers of small 
business loans that occurred during the time that the institution was 
qualified and did not exceed such limit.
    (f) Prompt Corrective Action Not Affected.--The capital of an 
insured depository institution shall be computed without regard to this 
section in determining whether the institution is adequately 
capitalized, undercapitalized, significantly undercapitalized, or 
critically undercapitalized under section 38 of the Federal Deposit 
Insurance Act.
    (g) Regulations Required.--Not later than 180 days after the date 
of the enactment of this Act each appropriate Federal banking agency 
shall promulgate final regulations implementing this section.
    (h) Alternative System Permitted.--
            (1) In general.--At the discretion of the appropriate 
        Federal banking agency, this section shall not apply if the 
        regulations of the agency provide that the aggregate amount of 
        capital and reserves required with respect to the transfer of 
        small business loans with recourse does not exceed the 
        aggregate amount of capital and reserves that would be required 
        under subsection (b).
            (2) Existing transactions not affected.--Notwithstanding 
        paragraph (1), this section shall remain in effect with respect 
        to transfers of small business loans with recourse by qualified 
        insured depository institutions occurring before the effective 
        date of regulations referred to in paragraph (1).
    (i) Definitions.--For purposes of this section--
            (1) the term ``adequately capitalized'' has the same 
        meaning as in section 38(b) of the Federal Deposit Insurance 
        Act;
            (2) the term ``appropriate Federal banking agency'' has the 
        same meaning as in section 3 of the Federal Deposit Insurance 
        Act;
            (3) the term ``capital standards'' has the same meaning as 
        in section 38(c) of the Federal Deposit Insurance Act;
            (4) the term ``Federal banking agencies'' has the same 
        meaning as in section 3 of the Federal Deposit Insurance Act;
            (5) the term ``insured depository institution'' has the 
        same meaning as in section 3 of the Federal Deposit Insurance 
        Act;
            (6) the term ``other capital measures'' has the meaning as 
        in section 38(c) of the Federal Deposit Insurance Act;
            (7) the term ``recourse'' has the meaning given to such 
        term under generally accepted accounting principles;
            (8) the term ``small business'' means a business that meets 
        the criteria for a small business concern established by the 
        Small Business Administration under section 3(a) of the Small 
        Business Act; and
            (9) the term ``well capitalized'' has the same meaning as 
        in section 38(b) of the Federal Deposit Insurance Act.

SEC. 209. TRANSACTIONS IN SMALL BUSINESS RELATED SECURITIES BY EMPLOYEE 
              BENEFIT PLANS.

    (a) Prohibited Transaction Exemption.--The Secretary of Labor, in 
consultation with the Secretary of the Treasury, shall exempt 
transactions involving small business related securities (as defined in 
section 3(a)(53) of the Securities Exchange Act of 1934 (as added by 
section 202 of this Act)), either unconditionally or on stated terms 
and conditions, from the restrictions of sections 406 and 407 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1106, 1107) 
and the taxes imposed under section 4975 of the Internal Revenue Code 
of 1986 (26 U.S.C. 4975).
    (b) Conditions.--In providing for the exemption required under 
subsection (a), the Secretary of Labor shall consider--
            (1) the importance of facilitating transactions in small 
        business related securities; and
            (2) the necessity of imposing any term or condition to 
        protect the rights and interests of participants and 
        beneficiaries of employee benefit plans affected by the 
        exemption.
    (c) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Labor shall promulgate final 
regulations to carry out subsection (a).

SEC. 210. TAXATION OF SMALL BUSINESS LOAN INVESTMENT CONDUITS.

    (a) Taxation Similar to REMIC.--The Secretary of the Treasury shall 
promulgate regulations providing for the taxation of a small business 
loan investment conduit and the holder of an interest therein similar 
to the taxation of a real estate mortgage investment conduit and the 
holder of interests therein under the Internal Revenue Code of 1986.
    (b) Adjustment to REMIC Provisions.--In promulgating regulations 
under subsection (a), the Secretary of the Treasury shall make any 
necessary adjustments to the real estate mortgage investment conduit 
provisions to take into consideration--
            (1) the purpose of facilitating the securitization of small 
        business loans through the use of small business loan 
        investment conduits and the development of a secondary market 
        in small business loans;
            (2) differences in the nature of qualifying mortgages in a 
        real estate mortgage investment conduit and small business 
        loans and obligations; and
            (3) differences in the practices of participants in the 
        securitization of real estate mortgages in a real estate 
        mortgage investment conduit and the securitization of other 
        assets.
    (c) Small Business Loan Investment Conduit Defined.--For purposes 
of this section, the term ``small business loan investment conduit'' 
means any entity substantially all of the assets of which consist of 
any obligation (including any participation or certificate of 
beneficial ownership therein)--
            (1) of a business that meets the criteria for a small 
        business concern established under section 3(a) of the Small 
        Business Act; and
            (2) that was originated by an insured depository 
        institution (as defined in section 3 of the Federal Deposit 
        Insurance Act), credit union, insurance company, or similar 
        institution or a finance company which is supervised and 
        examined by an appropriate Federal or State authority.

             Subtitle B--Small Business Capital Enhancement

SEC. 251. FINDINGS AND PURPOSES.

    (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 subtitle 
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.

SEC. 252. DEFINITIONS.

    For purposes of this subtitle--
            (1) the term ``Secretary'' means the Secretary of Housing 
        and Urban Development;
            (2) the term ``appropriate Federal banking agency''--
                    (A) has the same meaning as in section 3 of the 
                Federal Deposit Insurance Act; 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;
            (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 subtitle;
            (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 
        254;
            (7) the term ``participating State'' means any State that 
        has been approved for participation in the Program in 
        accordance with section 253;
            (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 subtitle;
            (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 the States of the United 
        States and the District of Columbia.

SEC. 253. APPROVING STATES FOR PARTICIPATION.

    (a) Application.--Any State may apply to the Secretary for approval 
to be a participating State under the Program and to be eligible for 
reimbursement by the Secretary pursuant to section 257.
    (b) Approval Criteria.--The Secretary 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 subtitle; and
            (5) the State and the Secretary have executed a 
        reimbursement agreement that conforms to the requirements of 
        this subtitle.
    (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 Secretary to be approved to be a participating State. The 
        Secretary shall approve such State to be a participating State, 
        and to be eligible for reimbursements by the Secretary pursuant 
        to section 257, if the State--
                    (A) satisfies the requirements of subsections (a) 
                and (b); and
                    (B) certifies that each affected financial 
                institution has satisfied the requirements of section 
                254.
            (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 237 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 Secretary 
                approves the State for participation.
                    (B) Effective date of participation.--If an amended 
                participation agreement that conforms with section 255 
                is required in order to secure participation approval 
                by the Secretary, contributions subject to 
                reimbursement under section 257 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 
                utilizing the reserve funds accumulated under the State 
                program.
    (d) Prior Appropriations Requirement.--The Secretary shall not 
approve a State for participation in the Program until at least 
$50,000,000 has been appropriated to the Secretary (subject to an 
appropriations Act), without fiscal year limitation, for the purpose of 
making reimbursements pursuant to section 257.
    (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 Secretary in accordance with 
subsection (b)(4). Any such amendment shall become effective only after 
it has been approved by the Secretary.

SEC. 254. PARTICIPATION AGREEMENTS.

    (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 
Secretary.
    (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.

SEC. 255. TERMS OF PARTICIPATION AGREEMENTS.

    (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 subject to the control of the participating State. 
Notwithstanding the preceding sentence, the participating State may 
allow a participating financial institution to treat the premium 
charges paid by the institution and the borrower into the reserve fund, 
and interest earned thereon, as assets of the institution for 
accounting purposes. 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).
    (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--
            (1) provide authority for the participating State to 
        withdraw some or all of such interest or income earned; and
            (2) allow the participating financial institution, upon its 
        withdrawal from the Program, to withdraw interest or income 
        earned that is deemed to be attributable to the premium charges 
        paid by the institution and the borrower and that remains in 
        the reserve fund, if such withdrawal does not expose the 
        participating State to any greater risk of loss than the risk 
        of loss in the absence of such withdrawal.
    (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), 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) 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 subtitle 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) Elements 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 subtitle.
    (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) 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 
                subtitle.
            (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.--
            (1) Withdrawals based on outstanding balance.--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.
            (2) Withdrawals based on premium charges remaining in 
        fund.--Upon its withdrawal from the Program, a participating 
        financial institution may withdraw from the reserve fund an 
        amount that is equivalent to the premium charges paid into the 
        fund by the institution and the borrower that remain in the 
        reserve fund, if such withdrawal would not expose the 
        participating State to a greater risk of loss than the risk of 
        loss in the absence of such withdrawal.

SEC. 256. REPORTS.

    (a) Reserve Funds Report.--On or before the last day of each 
calendar quarter, a participating State shall submit to the Secretary 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 257 is applicable;
            (3) if one of the limitations in section 257 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 253(b)(3) 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 
                subtitle and regulations issued pursuant to section 
                259.
    (b) Annual Data.--Not later than March 31 of each year, each 
participating State shall submit to the Secretary 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) shall be in such form as the Secretary may require.

SEC. 257. REIMBURSEMENT BY THE SECRETARY.

    (a) Reimbursements.--Not later than 30 calendar days after 
receiving a report filed in compliance with section 256, the Secretary 
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 Secretary 
pursuant to section 256 and this section. The Secretary shall reimburse 
participating States, as it receives reports pursuant to section 
256(a), until available funds are expended.
    (b) Size of Assisted Borrower.--The Secretary 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 Secretary 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 Secretary 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 
Secretary 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 Secretary to the 
participating State shall be determined--
            (1) by applying subsection (d) 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) to the balance of the loan.

SEC. 258. REIMBURSEMENT TO THE SECRETARY.

    (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 255, such participating State 
shall, not later than 15 calendar days after such withdrawal, submit to 
the Secretary an amount computed by multiplying the amount withdrawn by 
the appropriate factor, as determined under subsection (b).
    (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 
        253(b).
    (c) Use of Reimbursements.--The Secretary may use funds reimbursed 
pursuant to this section to make reimbursements under section 257.

SEC. 259. REGULATIONS.

    The Secretary shall promulgate appropriate regulations to implement 
this subtitle.

SEC. 260. AUTHORIZATION OF APPROPRIATIONS.

    (a) Amount.--There are authorized to be appropriated to the 
Secretary $50,000,000 to carry out this subtitle.
    (b) Budgetary Treatment.--The amount authorized to be appropriated 
under subsection (a) shall be subject to discretionary spending caps, 
as provided in section 601 of the Congressional Budget Act of 1974, and 
therefore shall reduce by an equal amount funds made available for 
other discretionary spending programs.

       TITLE III--PAPERWORK REDUCTION AND REGULATORY IMPROVEMENT

SEC. 301. INCORPORATED DEFINITIONS.

    Unless otherwise specifically provided in this title, for purposes 
of this title--
            (1) the terms ``appropriate Federal banking agency'', 
        ``Federal banking agencies'', and ``insured depository 
        institution'' have the same meanings as in section 3 of the 
        Federal Deposit Insurance Act; and
            (2) the term ``insured credit union'' has the same meaning 
        as in section 101 of the Federal Credit Union Act.

SEC. 302. ADMINISTRATIVE CONSIDERATION OF BURDEN WITH NEW REGULATIONS.

    In determining the effective date and administrative compliance 
requirements for new regulations that impose additional reporting, 
disclosure, or other requirements on insured depository institutions, 
each Federal banking agency shall consider, consistent with the 
principles of safety and soundness and the public interest--
            (1) any administrative burdens that such regulations would 
        place on depository institutions, including small depository 
        institutions, and customers of depository institutions; and
            (2) the benefits of such regulations.

SEC. 303. STREAMLINING OF REGULATORY REQUIREMENTS.

    (a) Review of Regulations; Regulatory Uniformity.--During the 2-
year period beginning on the date of enactment of this Act, each 
Federal banking agency shall, consistent with principles of safety and 
soundness and the public interest--
            (1) conduct a review of the regulations and written 
        policies of that agency--
                    (A) to streamline those regulations and policies in 
                order to improve efficiency, reduce unnecessary costs, 
                and eliminate unwarranted constraints on credit 
                availability; and
                    (B) to remove inconsistencies and outmoded and 
                duplicative requirements; and
            (2) work jointly with the other Federal banking agencies to 
        make uniform all regulations and guidelines implementing common 
        statutory or supervisory policies.
    (b) Report to Congress.--The Federal banking agencies shall submit 
a joint report to the Congress annually for 2 years following the date 
of enactment of this Act detailing the progress of the agencies in 
carrying out the requirements of subsection (a).

SEC. 304. ELIMINATION OF DUPLICATIVE FILINGS.

    The Federal banking agencies shall work jointly--
            (1) to eliminate, to the extent practicable, duplicative or 
        otherwise unnecessary requests for information in connection 
        with applications or notices to the agencies; and
            (2) to harmonize, to the extent practicable, any 
        inconsistent publication and public notice requirements.

SEC. 305. COORDINATED AND UNIFIED EXAMINATIONS.

    Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 
1820(d)) is amended by adding at the end the following new paragraph:
            ``(6) Coordinated examinations.--To minimize the disruptive 
        effects of examinations on the operations of insured depository 
        institutions--
                    ``(A) each appropriate Federal banking agency 
                shall, to the extent practicable and consistent with 
                safety and soundness principles and the public 
                interest--
                            ``(i) coordinate examinations to be 
                        conducted by that agency at an insured 
                        depository institution and its affiliates;
                            ``(ii) coordinate with the other 
                        appropriate Federal banking agencies in the 
                        conduct of such examinations; and
                            ``(iii) work to coordinate the conduct of 
                        all examinations made pursuant to this 
                        subsection with the appropriate State bank 
                        supervisor; and
                    ``(B) not later than 2 years after the date of 
                enactment of the Community Development, Credit 
                Enhancement, and Regulatory Improvement Act of 1993, 
                the Federal banking agencies shall jointly establish 
                and implement a system for determining which one of the 
                Federal banking agencies shall conduct a unified 
                examination of each insured depository institution and 
                its affiliates, as required by this subsection, on 
                behalf of all Federal banking agencies.''.

SEC. 306. EIGHTEEN-MONTH EXAMINATION RULE FOR CERTAIN SMALL 
              INSTITUTIONS.

    Section 10(d)(4) of the Federal Deposit Insurance Act (12 U.S.C. 
1820(d)(4)) is amended--
            (1) in subparagraph (A), by striking ``$100,000,000'' and 
        inserting ``$250,000,000'';
            (2) in subparagraph (C), by striking ``and'' at the end;
            (3) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (4) by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) the insured institution is not currently 
                subject to a formal enforcement proceeding or order by 
                the Corporation or the appropriate Federal banking 
                agency; and''.

SEC. 307. CALL REPORT SIMPLIFICATION.

    (a) Modernization of Call Report Filing and Disclosure System.--In 
order to reduce the administrative requirements pertaining to bank 
reports of condition, savings association financial reports, and bank 
holding company consolidated and parent-only financial statements, and 
to improve the timeliness of such reports and statements, the Federal 
banking agencies shall--
            (1) work jointly to develop a system under which--
                    (A) insured depository institutions and their 
                affiliates may file such reports and statements 
                electronically; and
                    (B) the Federal banking agencies may make such 
                reports and statements available to the public 
                electronically; and
            (2) not later than 1 year after the date of enactment of 
        this Act, report to the Congress and make recommendations for 
        legislation that would enhance efficiency for filers and users 
        of such reports and statements.
    (b) Uniform Reports and Simplification of Instructions.--The 
Federal banking agencies shall, consistent with the principles of 
safety and soundness, work jointly--
            (1) to adopt a single form for the filing of core 
        information required to be submitted under Federal law to all 
        such agencies in the reports and statements referred to in 
        subsection (a); and
            (2) to simplify instructions accompanying such reports and 
        statements and to provide an index to the instructions that is 
        adequate to meet the needs of both filers and users.
    (c) Review of Call Report Schedule.--Each Federal banking agency 
shall--
            (1) review the information required by schedules 
        supplementing the core information referred to in subsection 
        (b); and
            (2) eliminate requirements that are not warranted for 
        reasons of safety and soundness or other public purposes.

SEC. 308. REPEAL OF PUBLICATION REQUIREMENTS.

    (a) Revised Statutes.--Section 5211 of the Revised Statutes (12 
U.S.C. 161) is amended--
            (1) in the fifth sentence of subsection (a), by striking 
        ``; and the statement of resources'' and all that follows 
        through ``as may be required by the Comptroller''; and
            (2) in subsection (c), by striking the fourth sentence.
    (b) FDIA.--Section 7(a)(1) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(a)(1)) is amended by striking the fourth sentence.
    (c) Federal Reserve Act.--Section 9 of the Federal Reserve Act (12 
U.S.C. 324) is amended in the last sentence of the sixth undesignated 
paragraph, by striking ``and shall be published'' and all that follows 
through the end of the sentence and inserting a period.

SEC. 309. REGULATORY APPEALS PROCESS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, each appropriate Federal banking agency and the 
National Credit Union Administration Board shall establish an 
independent intra-agency appellate process. The process shall be 
available to review material supervisory determinations made at insured 
depository institutions or at insured credit unions that the agency 
supervises.
    (b) Review Process.--In establishing the independent appellate 
process under subsection (a), each agency shall ensure--
            (1) that any appeal of a material supervisory determination 
        by an insured depository institution or credit union is heard 
        and decided expeditiously; and
            (2) that appropriate safeguards exist for protecting the 
        appellant from retaliation by agency examiners.
    (c) Comment Period.--Not later than 90 days after the date of 
enactment of this Act, each appropriate Federal banking agency and the 
National Credit Union Administration shall provide public notice and 
opportunity for comment on proposed guidelines for the establishment of 
an appellate process under this section.
    (d) Definitions.--For purposes of this section--
            (1) the term ``material supervisory determinations'' 
        includes determinations relating to--
                    (A) examination ratings;
                    (B) the adequacy of loan loss reserve provisions; 
                and
                    (C) loan classifications on loans that are 
                significant to the institution; and
            (2) the term ``independent appellate process'' means a 
        review by an agency official who does not directly or 
        indirectly report to the agency official who made the material 
        supervisory determination under review.
    (e) Effect on Other Authority.--Nothing in this section shall 
affect the authority of an appropriate Federal banking agency or the 
National Credit Union Association Board to take enforcement or 
supervisory action against an institution.

SEC. 310. ELECTRONIC FILING OF CURRENCY TRANSACTION REPORTS.

    Section 123 of the Bank Secrecy Act (12 U.S.C. 1953) is amended by 
adding at the end the following new subsection:
    ``(c) Acceptance of Automated Records.--The Secretary shall permit 
an uninsured bank or financial institution to retain or maintain 
records referred to in subsection (a) in electronic or automated form, 
subject to terms and conditions established by the Secretary.''.

SEC. 311. BANK SECRECY ACT PUBLICATION REQUIREMENTS.

    Chapter 53 of title 31, United States Code, is amended by adding at 
the end the following new section:

``SEC. 5329. STAFF COMMENTARIES.

    ``The Secretary shall--
            ``(1) publish all written rulings interpreting this 
        chapter; and
            ``(2) annually issue a staff commentary on the regulations 
        issued under this chapter.''.

SEC. 312. EXEMPTION OF BUSINESS LOANS FROM REAL ESTATE SETTLEMENT 
              PROCEDURES ACT REQUIREMENTS.

    The Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 
et seq.) is amended by inserting after section 6 the following new 
section:

``SEC. 7. EXEMPTED TRANSACTIONS.

    ``This Act does not apply to credit transactions involving 
extensions of credit--
            ``(1) primarily for business, commercial, or agricultural 
        purposes; or
            ``(2) to government or governmental agencies or 
        instrumentalities.''.

SEC. 313. FLEXIBILITY IN CHOOSING BOARDS OF DIRECTORS.

    Section 5146 of the Revised Statutes (12 U.S.C. 72) is amended in 
the first sentence, by striking ``two thirds'' and inserting ``a 
majority''.

SEC. 314. HOLDING COMPANY AUDIT REQUIREMENTS.

    Section 36(i) of the Federal Deposit Insurance Act (12 U.S.C. 
1831m(i)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) the institution--
                    ``(A) has total assets, as of the beginning of such 
                fiscal year, of less than $5,000,000,000;
                    ``(B) has--
                            ``(i) total assets, as of the beginning of 
                        such fiscal year, of more than $5,000,000,000 
                        and less than $9,000,000,000; and
                            ``(ii) a CAMEL composite rating of 1 or 2 
                        under the Uniform Financial Institutions Rating 
                        System (or an equivalent rating by any such 
                        agency under a comparable rating system) as of 
                        the most recent examination of such institution 
                        by the Corporation or the appropriate Federal 
                        banking agency; or
                    ``(C) has--
                            ``(i) total assets, as of the beginning of 
                        such fiscal year, of more than $9,000,000,000; 
                        and
                            ``(ii) a CAMEL composite rating of 1 under 
                        the Uniform Financial Institutions Rating 
                        System (or an equivalent rating by any such 
                        agency under a comparable rating system) as of 
                        the most recent examination of such institution 
                        by the Corporation or the appropriate Federal 
                        banking agency.
Notwithstanding paragraph (2)(C), in the case of an insured depository 
institution that the Corporation determines to be a large institution, 
the audit committee of the holding company of such an institution shall 
not include any large customers of the institution.''.

SEC. 315. STATE REGULATION OF REAL ESTATE APPRAISALS.

    Section 1122 of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 3351) is amended--
            (1) by redesignating subsections (b) through (e) as 
        subsections (c) through (f), respectively;
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Reciprocity.--The Appraisal Subcommittee shall encourage the 
States to develop reciprocity agreements that readily authorize 
appraisers who are licensed or certified in one State (and who are in 
good standing with their State appraiser certifying or licensing 
agency) to perform appraisals in other States.''; and
            (3) in subsection (a)--
                    (A) by redesignating paragraphs (1) through (3) as 
                subparagraphs (A) through (C);
                    (B) by striking ``A State'' and inserting the 
                following:
            ``(1) In general.--A State''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) Fees for temporary practice.--A State appraiser 
        certifying or licensing agency shall not impose excessive fees 
        or burdensome requirements, as determined by the Appraisal 
        Subcommittee, for temporary practice under this subsection.''.

SEC. 316. ACCELERATION OF EFFECTIVE DATE FOR INTERAFFILIATE 
              TRANSACTIONS.

    (a) Home Owners' Loan Act Amendment.--Section 11(a)(2) of the Home 
Owners' Loan Act (12 U.S.C. 1468(a)(2)) is amended by adding at the end 
the following new subparagraph:
                    ``(C) Transition rule for well capitalized savings 
                associations.--
                            ``(i) In general.--A savings association 
                        that is well capitalized (as defined in section 
                        38 of the Federal Deposit Insurance Act), as 
                        determined without including goodwill in 
                        calculating core capital, shall be treated as a 
                        bank for purposes of section 23A(d)(1) and 
                        section 23B of the Federal Reserve Act.
                            ``(ii) Liability of commonly controlled 
                        depository institutions.--Any savings 
                        association that engages under clause (i) in a 
                        transaction that would not otherwise be 
                        permissible under this subsection, and any 
                        affiliated insured bank that is commonly 
                        controlled (as defined in section 5(e)(9) of 
                        the Federal Deposit Insurance Act), shall be 
                        subject to subsection (e) of section 5 of the 
                        Federal Deposit Insurance Act as if paragraph 
                        (6) of that subsection did not apply.''.
    (b) Repeal Provision.--Effective on January 1, 1995, subparagraph 
(C) of section 11(a)(2) of the Home Owners' Loan Act (12 U.S.C. 
1468(a)(2)) (as added by subsection (a) of this section) is repealed.

SEC. 317. COLLATERALIZATION OF PUBLIC DEPOSITS.

    Section 13(e) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(e)) is amended--
            (1) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D), respectively;
            (2) by striking ``No agreement'' and inserting the 
        following:
            ``(1) In general.--No agreement''; and
            (3) by adding at the end the following new paragraph:
            ``(2) Public deposits.--An agreement to provide for the 
        lawful collateralization of deposits of a Federal, State, or 
        local governmental entity or of any depositor referred to in 
        section 11(a)(2) shall not be deemed to be invalid pursuant to 
        paragraph (1)(B) solely because of changes in the collateral 
        made in accordance with such agreement.''.

SEC. 318. ELIMINATION OF STOCK VALUATION PROVISION.

    (a) In General.--Section 39(b)(1) of the Federal Deposit Insurance 
Act (12 U.S.C. 1831p-1(b)(1), as added by section 132(a) of the Federal 
Deposit Insurance Corporation Improvements Act of 1991) is amended--
            (1) in subparagraph (A), by adding ``and'' at the end; and
            (2) by striking subparagraph (C).
    (b) Effective Date.--The amendments made by subsection (a) shall be 
construed to have the same effective date as section 39 of the Federal 
Deposit Insurance Act, as provided in section 132(c) of the Federal 
Deposit Insurance Corporation Improvements Act of 1991.

SEC. 319. EXPEDITED PROCEDURES FOR FORMING A BANK HOLDING COMPANY.

    Section 3(a) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1842(a)) is amended--
            (1) in the second sentence, by striking ``or (B)'' and 
        inserting ``(B)''; and
            (2) in the second sentence, by inserting before the period 
        the following: ``; or (C) with 30 days prior notification to 
        the Board, the acquisition by a company of control of a bank in 
        a reorganization in which a person or group of persons 
        exchanges its shares of the bank for shares of a newly formed 
        bank holding company and receives, after the reorganization, 
        substantially the same proportional share interest in the 
        holding company as it held in the bank (except for changes in 
        shareholders' interests resulting from the exercise of 
        dissenting shareholders' rights under State or Federal law) if, 
        immediately following the acquisition, (i) the bank holding 
        company meets the capital and other financial standards 
        prescribed by the Board by regulation for such a bank holding 
        company; (ii) the bank is adequately capitalized (as defined in 
        section 38 of the Federal Deposit Insurance Act); and (iii) the 
        holding company does not engage in any activities other than 
        those of banking or managing and controlling banks''.

SEC. 320. EXEMPTION OF CERTAIN HOLDING COMPANY FORMATIONS FROM 
              REGISTRATION UNDER THE SECURITIES ACT OF 1933.

    Section 4 of the Securities Act of 1933 (15 U.S.C. 77d) is amended 
by adding at the end the following new paragraph:
            ``(7) transactions involving offers or sales of equity 
        securities, in connection with the acquisition of a bank by a 
        company under section 3(a) of the Bank Holding Company Act of 
        1956, if--
                    ``(A) the acquisition occurs solely as part of a 
                reorganization in which a person or group of persons 
                exchanges its shares of a bank for shares of a newly 
                formed bank holding company with no significant assets 
                other than securities of the bank and the existing 
                subsidiaries of the bank;
                    ``(B) the shareholders receive, after that 
                reorganization, substantially the same proportional 
                share interests in the bank holding company as they 
                held in the bank, except for changes in shareholders' 
                interests resulting from lawful elimination of 
                fractional interests and the exercise of dissenting 
                shareholders' rights under State or Federal law;
                    ``(C) the rights and interests of security holders 
                in the bank holding company are substantially the same 
                as those in the bank prior to the transaction, other 
                than as may be required by law; and
                    ``(D) the bank holding company has substantially 
                the same assets and liabilities as the bank had prior 
                to the transaction.''.

SEC. 321. REDUCTION OF POST-APPROVAL WAITING PERIOD FOR BANK HOLDING 
              COMPANY ACQUISITIONS.

    Section 11(b)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1849(b)(1)) is amended by inserting before the period at the end of the 
fourth sentence the following: ``or, if the Board has not received any 
adverse comment from the Attorney General of the United States relating 
to competitive factors, such shorter period of time as may be 
prescribed by the Board with the concurrence of the Attorney General, 
but in no event less than 15 calendar days after the date of 
approval''.

SEC. 322. REDUCTION OF POST-APPROVAL WAITING PERIOD FOR BANK MERGERS.

    Section 18(c)(6) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(c)(6)) is amended by inserting before the period at the end of the 
last sentence the following: ``or, if the agency has not received any 
adverse comment from the Attorney General of the United States relating 
to competitive factors, such shorter period of time as may be 
prescribed by the agency with the concurrence of the Attorney General, 
but in no event less than 15 calendar days after the date of 
approval''.

SEC. 323. BANKERS' BANKS.

    (a) Ownership by Bankers' Banks.--
            (1) Paragraph Seventh of section 5136 of the Revised 
        Statutes (12 U.S.C. 24) is amended in the eleventh sentence--
                    (A) by inserting ``or depository institution 
                holding companies (as defined in section 3 of the 
                Federal Deposit Insurance Act)'' after ``(except to the 
                extent directors' qualifying shares are required by 
                law) by depository institutions''; and
                    (B) by striking ``employees'' and inserting 
                ``employees (also referred to as a `bankers' bank')''.
            (2) Section 5169(b)(1) of the Revised Statutes (12 U.S.C. 
        27(b)(1)) is amended--
                    (A) by inserting ``or depository institution 
                holding companies'' after ``(except to the extent 
                directors' qualifying shares are required by law) by 
                other depository institutions''; and
                    (B) by striking ``employees'' and inserting 
                ``employees (also referred to as a `bankers' bank')''.
    (b) Ownership by Savings Associations.--Section 5(c)(4) of the Home 
Owners' Loan Act (12 U.S.C. 1464(c)(4)) is amended by adding at the end 
the following new subparagraph:
                    ``(E) Bankers' Banks.--A Federal savings 
                association may purchase for its own account shares of 
                stock of a bankers' bank, described in Paragraph 
                Seventh of section 5136 of the Revised Statutes or in 
                section 5169(b) of the Revised Statutes, on the same 
                terms and conditions as a national bank may purchase 
                such shares.''.
    (c) Technical and Conforming Amendments.--
            (1) Bank holding company act.--Section 3(e) of the Bank 
        Holding Company Act of 1956 (12 U.S.C. 1842(e)) is amended by 
        striking the second sentence.
            (2) Management interlocks act.--Section 202(3)(D) of the 
        Depository Institution Management Interlocks Act (12 U.S.C. 
        3201(3)(D)) is amended by striking ``the voting securities'' 
        and all that follows through the end of the subparagraph and 
        inserting ``and is a bankers' bank, described in Paragraph 
        Seventh of section 5136 of the Revised Statutes; or''.

SEC. 324. BANK SERVICE CORPORATION ACT AMENDMENT.

    Section 5 of the Bank Service Corporation Act (12 U.S.C. 1865) is 
amended--
            (1) in subsection (a), by striking ``the prior approval 
        of'' and inserting ``prior notice, as determined by''; and
            (2) in subsection (c), by inserting ``or whether to approve 
        or disapprove any notice'' after ``approval''.

SEC. 325. MERGER TRANSACTION REPORTS.

    Section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(c)) is amended--
            (1) in paragraph (4)--
                    (A) in the first sentence--
                            (i) by striking ``General and the other 
                        two'' and inserting ``General, who shall 
                        promptly notify the other''; and
                            (ii) by inserting before the period ``of 
                        any such proposed transaction that raises a 
                        significant competitiveness issue''; and
                    (B) in the second sentence, by striking ``and the 
                other two banking agencies''; and
            (2) in paragraph (6), by striking ``and the other two 
        banking agencies''.

SEC. 326. CREDIT CARD ACCOUNTS RECEIVABLE SALES.

    Section 11(e) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)) is amended by adding at the end the following new paragraphs:
            ``(14) Selling credit card accounts receivable.--
                    ``(A) Notification required.--An undercapitalized 
                insured depository institution (as defined in section 
                38) shall notify the Corporation in writing before 
                entering into an agreement to sell credit card accounts 
                receivable.
                    ``(B) Waiver by corporation.--The Corporation may 
                at any time, in its sole discretion and upon such terms 
                as it may prescribe, waive its right to repudiate an 
                agreement to sell credit card accounts receivable if 
                the Corporation--
                            ``(i) determines that the waiver is in the 
                        best interests of the deposit insurance fund; 
                        and
                            ``(ii) provides a written waiver to the 
                        selling institution.
                    ``(C) Effect of waiver on successors.--
                            ``(i) In general.--If, under subparagraph 
                        (B), the Corporation has waived its right to 
                        repudiate an agreement to sell credit card 
                        accounts receivable--
                                    ``(I) any provision of the 
                                agreement that restricts solicitation 
                                of a credit card customer of the 
                                selling institution, or the use of a 
                                credit card customer list of the 
                                institution, shall bind any receiver or 
                                conservator of the institution; and
                                    ``(II) the Corporation shall 
                                require any acquirer of the selling 
                                institution, or of substantially all of 
                                the selling institution's assets or 
                                liabilities, to agree to be bound by a 
                                provision described in subclause (I) as 
                                if the acquirer were the selling 
                                institution.
                            ``(ii) Exception.--Clause (i)(II) does 
                        not--
                                    ``(I) restrict the acquirer's 
                                authority to offer any product or 
                                service to any person identified 
                                without using a list of the selling 
                                institution's customers in violation of 
                                the agreement;
                                    ``(II) require the acquirer to 
                                restrict any preexisting relationship 
                                between the acquirer and a customer; or
                                    ``(III) apply to any transaction in 
                                which the acquirer acquires only 
                                insured deposits.
                    ``(D) Waiver not actionable.--The Corporation shall 
                not, in any capacity, be liable to any person for 
                damages resulting from the waiver of or failure to 
                waive the Corporation's right under this section to 
                repudiate any contract or lease, including an agreement 
                to sell credit card accounts receivable. No court shall 
                issue any order affecting any such waiver or failure to 
                waive.
                    ``(E) Other authority not affected.--This paragraph 
                does not limit any other authority of the Corporation 
                to waive the Corporation's right to repudiate an 
                agreement or lease under this section.
            ``(15) Certain credit card customer lists protected.--
                    ``(A) In general.--If any insured depository 
                institution sells credit card accounts receivable under 
                an agreement negotiated at arm's length that provides 
                for the sale of the institution's credit card customer 
                list, the Corporation shall prohibit any party to a 
                transaction with respect to the institution under this 
                section or section 13 from using the list except as 
                permitted under the agreement.
                    ``(B) Fraudulent transactions excluded.--
                Subparagraph (A) does not limit the Corporation's 
                authority to repudiate any agreement entered into with 
                the intent to hinder, delay, or defraud the 
                institution, the institution's creditors, or the 
                Corporation.''.

SEC. 327. LIMITING POTENTIAL LIABILITY ON FOREIGN ACCOUNTS.

    (a) Amendment to the Federal Reserve Act.--The Federal Reserve Act 
(12 U.S.C. 221 et seq.) is amended by inserting after section 25B the 
following new section:

``SEC. 25C. POTENTIAL LIABILITY ON FOREIGN ACCOUNTS.

    ``A member bank shall not be required to repay any deposit made at 
a foreign branch of the bank if the branch cannot repay the deposit due 
to--
            ``(1) an act of war, insurrection or civil strife; or
            ``(2) an action by a foreign government or instrumentality 
        (whether de jure or de facto) in the country in which the 
        branch is located,
unless the member bank has expressly agreed in writing to repay the 
deposit under those circumstances. The Board may prescribe such 
regulations as it deems necessary to implement this section.''.
    (b) Conforming Amendments to the Federal Deposit Insurance Act.--
            (1) In general.--Section 18 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1828) is amended by adding at the end 
        the following new subsection:
    ``(q) Sovereign Risk.--Section 25C of the Federal Reserve Act shall 
apply to every nonmember insured bank in the same manner and to the 
same extent as if the nonmember insured bank were a member bank.''.
            (2) Conforming amendment.--Subparagraph (A) of section 
        3(l)(5) of the Federal Deposit Insurance Act (12 U.S.C. 
        1813(l)(5)) is amended to read as follows:
                    ``(A) any obligation of a depository institution 
                which is carried on the books and records of an office 
                of such bank or savings association located outside of 
                any State, unless--
                            ``(i) such obligation would be a deposit if 
                        it were carried on the books and records of the 
                        depository institution, and would be payable 
                        at, an office located in any State; and
                            ``(ii) the contract evidencing the 
                        obligation provides by express terms, and not 
                        by implication, for payment at an office of the 
                        depository institution located in any State; 
                        and''.
    (c) Existing Claims Not Affected--Section 25C of the Federal 
Reserve Act (as added by subsection (a)) shall not be applied 
retroactively and shall not be construed to affect or apply to any 
claim or cause of action addressed by that section arising from events 
or circumstances that occurred before the date of enactment of this 
Act.

SEC. 328. AMENDMENTS TO OUTDATED DIVIDEND PROVISIONS.

    (a) Withdrawal of Capital.--Section 5204 of the Revised Statutes 
(12 U.S.C. 56) is amended--
            (1) in the second sentence, by striking ``net profits then 
        on hand, deducting therefrom its losses and bad debts'' and 
        inserting ``undivided profits, subject to other applicable 
        provisions of law''; and
            (2) by striking the third sentence.
    (b) Declaration of Dividends.--Section 5199 of the Revised Statutes 
(12 U.S.C. 60) is amended--
            (1) in the first sentence, by striking ``net profits of the 
        association'' and inserting ``undivided profits of the 
        association, subject to the limitations in subsection (b),'';
            (2) by striking ``net profits'' each subsequent place such 
        term appears and inserting ``net income''; and
            (3) by striking subsection (c).

SEC. 329. ELIMINATION OF DUPLICATIVE DISCLOSURES FOR HOME EQUITY LOANS.

    Section 4(a) of the Real Estate Settlement Procedures Act (12 
U.S.C. 2603(a)) is amended by adding at the end the following: ``In the 
case of a federally related mortgage loan secured by a subordinate lien 
on residential property, disclosures made under section 127A(a) of the 
Truth in Lending Act may be used in lieu of the disclosures required 
under this section if--
            ``(1) the disclosures made pursuant to such section 127A(a) 
        contain all of the information that is required under this 
        section; and
            ``(2) the information is disclosed in a manner that is no 
        less conspicuous than is required under this section.''.

SEC. 330. REPORT ON CAPITAL STANDARDS AND THEIR IMPACT ON THE ECONOMY.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of the Treasury, after consultation with the 
Federal banking agencies, shall report to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Banking, 
Finance and Urban Affairs of the House of Representatives on the effect 
of the implementation of risk-based capital standards on--
            (1) the safety and soundness of insured depository 
        institutions; and
            (2) the availability of credit, particularly to consumers 
        and small business concerns.
    (b) Recommendations.--The report required by subsection (a) shall 
contain any recommendations that the Secretary of the Treasury 
considers relevant.

SEC. 331. STUDIES ON THE IMPACT OF THE PAYMENT OF INTEREST ON RESERVES.

    (a) Federal Reserve Study.--Not later than 180 days after the date 
of enactment of this Act, the Board of Governors of the Federal Reserve 
System, in consultation with the Federal Deposit Insurance Corporation, 
shall conduct a study and report to Congress on--
            (1) the necessity, for monetary policy purposes, of 
        continuing to require insured depository institutions to 
        maintain sterile reserves;
            (2) the appropriateness of paying a market rate of interest 
        to insured depository institutions on sterile reserves or, in 
        the alternative, providing for payment of such interest into 
        the appropriate deposit insurance fund;
            (3) the monetary impact that the failure to pay interest on 
        sterile reserves has had on insured depository institutions, 
        including an estimate of the total dollar amount of interest 
        and the potential income lost by insured depository 
        institutions; and
            (4) the impact that the failure to pay interest on sterile 
        reserves has had on the ability of the banking industry to 
        compete with nonbanking providers of financial services and 
        with foreign banks.
    (b) Budgetary Impact Study.--Not later than 180 days after the date 
of enactment of this Act, the Director of the Office of Management and 
Budget and the Director of the Congressional Budget Office, in 
consultation with the Committees on the Budget of the Senate and the 
House of Representatives, shall jointly conduct a study and report to 
the Congress on the budgetary impact of--
            (1) paying a market rate of interest to insured depository 
        institutions on sterile reserves; and
            (2) paying such interest into the respective deposit 
        insurance funds.

SEC. 332. STUDY AND REPORT ON STREAMLINED LENDING PROCESS FOR CONSUMER 
              BENEFIT.

    (a) Study.--During the 12-month period beginning on the date of 
enactment of this Act, the Board of Governors of the Federal Reserve 
System, the Comptroller of the Currency, and the Secretary of Housing 
and Urban Development shall conduct a study of ways to improve the home 
mortgage, small business, and consumer lending processes, consistent 
with the principles of safety and soundness, so as to--
            (1) reduce consumer burdens, inconvenience, cost, and 
        delay; and
            (2) minimize cost and burdens on insured depository 
        institutions, credit unions, and other lenders.
    (b) Comments.--In conducting the study under subsection (a), 
comments shall be solicited from consumer groups, insured depository 
institutions, other lenders, and any other interested parties.
    (c) Report.--Not later than 12 months after the date of enactment 
of this Act, the Board of Governors of the Federal Reserve System, the 
Comptroller of the Currency, and the Secretary of Housing and Urban 
Development shall submit a joint report to the Congress indicating any 
legislative changes necessary to improve the home mortgage, small 
business, and consumer lending processes and including a summary of 
comments received pursuant to subsection (b).

SEC. 333. REPEAL OF OUTDATED CHARTER REQUIREMENT FOR NATIONAL BANKS.

    Section 5170 of the Revised Statutes (12 U.S.C. 28) is repealed.
    Amend the title so as read: ``A bill to facilitate the 
establishment of community development financial institutions, to 
provide consumer protections for high cost mortgages, to encourage 
investment in and lending to small businesses, to improve the 
regulation of depository institutions, and for other purposes.''.
 S 1275 RS----2
 S 1275 RS----3
 S 1275 RS----4
 S 1275 RS----5
 S 1275 RS----6
 S 1275 RS----7
 S 1275 RS----8
 S 1275 RS----9
 S 1275 RS----10
 S 1275 RS----11
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