I 

111TH CONGRESS 

2D SESSION H. R. 6334 

To amend the Community Reinvestment Act of 1977 to improve the 

assessments of regulated financial institutions, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 29, 2010 

Mr. GUTIERREZ (for himself, Ms. WATERS, Mr. AL GREEN of Texas, and Ms. 

EDDIE BERNICE JOHNSON of Texas) introduced the following bill; which 

was referred to the Committee on Financial Services 

A BILL 

To amend the Community Reinvestment Act of 1977 to 

improve the assessments of regulated financial institutions, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Community 

5 Investment Reform Act of 2010’’. 

6 SEC. 2. COMMUNITY REINVESTMENT ACT AMENDMENTS. 

7 (a) FINDINGS AND PURPOSE.—Section 802 of the 

8 Community Reinvestment Act of 1977 (12 U.S.C. 2901) 

9 is amended to read as follows: 


emcdonald on DSK2BSOYB1PROD with BILLS
2 

•HR 6334 IH

1 ‘‘SEC. 802. FINDINGS AND PURPOSE. 

2 ‘‘(a) FINDINGS.—The Congress finds that— 

3 ‘‘(1) regulated financial institutions are re4 quired by law to demonstrate that they serve the 

5 convenience and needs of the communities in which 

6 they are chartered or do business; 

7 ‘‘(2) the convenience and needs of communities 

8 include the need for credit services, deposit services, 

9 transaction services, and community development 

10 loans and investments; and 

11 ‘‘(3) regulated financial institutions have a con12 tinuing and affirmative obligation to help meet the 

13 credit or other financial needs of the local commu14 nities in which they are chartered or do business. 

15 ‘‘(b) PURPOSE.—It is the purpose of this title to re16 quire each appropriate Federal financial supervisory agen17 cy to use its authority when examining regulated financial 

18 institutions, to encourage such institutions to help meet 

19 the credit or other financial needs of the local communities 

20 in which they are chartered or do business consistent with 

21 the safe and sound operation of such institutions.’’. 

22 (b) DEFINITIONS.—Section 803 of such Act (12 

23 U.S.C. 2902) is amended to read as follows: 

24 ‘‘SEC. 803. DEFINITIONS. 

25 ‘‘For purposes of this title: 


emcdonald on DSK2BSOYB1PROD with BILLS
3 

•HR 6334 IH

1 ‘‘(1) APPROPRIATE FEDERAL FINANCIAL SU2 PERVISORY AGENCY.—The term ‘appropriate Fed3 eral financial supervisory agency’ means— 

4 ‘‘(A) the appropriate Federal banking 

5 agency with respect to depository institutions 

6 and depository institution holding companies, as 

7 those terms are defined under section 3 of the 

8 Federal Deposit Insurance Act; 

9 ‘‘(B) the Securities and Exchange Commis10 sion with regard to— 

11 ‘‘(i) any U.S. nonbank financial com12 pany for which the Securities and Ex13 change Commission acts as the primary fi14 nancial regulatory agency pursuant to sec15 tion 2 of the Dodd-Frank Wall Street Re16 form and Consumer Protection Act; and 

17 ‘‘(ii) any broker or dealer that is a 

18 member of the Securities Investor Protec19 tion Corporation; 

20 ‘‘(C) the Bureau of Consumer Financial 

21 Protection with respect to any covered person 

22 supervised by the Bureau pursuant to section 

23 1024 of the Dodd-Frank Wall Street Reform 

24 and Consumer Protection Act; and 


emcdonald on DSK2BSOYB1PROD with BILLS
4 

•HR 6334 IH

1 ‘‘(D) the Board of Governors of the Fed2 eral Reserve System with respect to— 

3 ‘‘(i) securities holding companies, as 

4 defined under section 618 of the Dodd5 Frank Wall Street Reform and Consumer 

6 Protection Act; and 

7 ‘‘(ii) in consultation with the primary 

8 financial regulatory agency (as such term 

9 is defined under section 2 of the Dodd10 Frank Wall Street Reform and Consumer 

11 Protection Act), any regulated financial in12 stitution not described in subparagraph 

13 (A), (B), or (C) or clause (i). 

14 ‘‘(2) CAPITAL DISTRIBUTION.—The term ‘cap15 ital distribution’ means— 

16 ‘‘(A) a distribution of cash or other prop17 erty by any regulated financial institution to its 

18 owners made on account of that ownership; 

19 ‘‘(B) a payment by a regulated financial 

20 institution to repurchase, redeem, retire, or oth21 erwise acquire any of its shares or other owner22 ship interests, including any extension of credit 

23 to finance an affiliated company’s acquisition of 

24 those shares or interests; and 


emcdonald on DSK2BSOYB1PROD with BILLS
5 

•HR 6334 IH

1 ‘‘(C) a transaction that the appropriate 

2 Federal financial supervisory agency deter3 mines, by order or regulation, to be in sub4 stance a distribution of capital to the owners of 

5 the regulated financial institution. 

6 ‘‘(3) COMMUNITY DEVELOPMENT.—The term 

7 ‘community development’ means— 

8 ‘‘(A) affordable housing for low- (including 

9 extremely low-income) or moderate-income indi10 viduals (including multifamily rental housing 

11 and properties awarded low-income housing tax 

12 credits under section 42(h) of the Internal Rev13 enue Code of 1986); 

14 ‘‘(B) community and financial services tar15 geted to low- or moderate-income individuals, 

16 including appropriate electronic payments, basic 

17 account activities, and successful mortgage or 

18 loan modifications; 

19 ‘‘(C) activities that promote economic de20 velopment by financing businesses or farms 

21 that— 

22 ‘‘(i) meet the size eligibility require23 ments of the Small Business Administra24 tion’s Development Company or the Small 

25 Business Investment Company programs 


emcdonald on DSK2BSOYB1PROD with BILLS
6 

•HR 6334 IH

1 under section 121.301 of title 13, Code of 

2 Federal Regulations; or 

3 ‘‘(ii) have gross annual revenues of 

4 $1,000,000 or less; or 

5 ‘‘(D) activities that revitalize or stabilize— 

6 ‘‘(i) low- or moderate-income geog7 raphies; 

8 ‘‘(ii) designated disaster areas; 

9 ‘‘(iii) distressed or underserved non10 metropolitan middle-income geographies 

11 designated by the Board of Governors of 

12 the Federal Reserve System, the Federal 

13 Deposit Insurance Corporation, and the 

14 Office of the Comptroller of the Currency, 

15 based on— 

16 ‘‘(I) rates of poverty, unemploy17 ment, and population loss; or 

18 ‘‘(II) population size, density, 

19 and dispersion, if such activities help 

20 to meet essential community needs, 

21 including needs of low- and moderate22 income individuals; or; 

23 ‘‘(iv) activities conducted by certified 

24 community development financial institu25 tions (as such term is defined under secVerDate Mar 15 2010 22:16 Oct 13, 2010 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H6334.IH H6334

emcdonald on DSK2BSOYB1PROD with BILLS
7 

•HR 6334 IH

1 tion 103(5) of the Community Develop2 ment Banking and Financial Institutions 

3 Act of 1994). 

4 ‘‘(4) REGULATED FINANCIAL INSTITUTION.— 

5 ‘‘(A) IN GENERAL.—The term ‘regulated 

6 financial institution’ means an insured deposi7 tory institution (as defined under section 3 of 

8 the Federal Deposit Insurance Act), a deposi9 tory institution holding company (as defined 

10 under section 3 of the Federal Deposit Insur11 ance Act), and a U.S. nonbank financial com12 pany. 

13 ‘‘(B) RULE OF CONSTRUCTION.—The term 

14 ‘regulated financial institution’ does not include 

15 a credit union. 

16 ‘‘(5) APPLICATION FOR A DEPOSIT FACILITY.— 

17 The term ‘application for a deposit facility’ means 

18 an application to the appropriate Federal financial 

19 supervisory agency otherwise required under Federal 

20 law or regulations thereunder for— 

21 ‘‘(A) a charter for a national bank or Fed22 eral savings and loan association; 

23 ‘‘(B) deposit insurance in connection with 

24 a newly chartered State bank, savings bank, 


emcdonald on DSK2BSOYB1PROD with BILLS
8 

•HR 6334 IH

1 savings and loan association or similar institu2 tion; 

3 ‘‘(C) the establishment of a domestic 

4 branch or other facility with the ability to ac5 cept deposits of a regulated financial institu6 tion; 

7 ‘‘(D) the relocation of the home office or a 

8 branch office of a regulated financial institu9 tion; 

10 ‘‘(E) the merger or consolidation with, or 

11 the acquisition of the assets, or the assumption 

12 of the liabilities of a regulated financial institu13 tion requiring approval under section 18(c) of 

14 the Federal Deposit Insurance Act or under 

15 regulations issued under the authority of title 

16 IV of the National Housing Act; or 

17 ‘‘(F) the acquisition of shares in, or the as18 sets of, a regulated financial institution requir19 ing approval under section 3 of the Bank Hold20 ing Company Act of 1956 or section 408(e) of 

21 the National Housing Act. 

22 ‘‘(6) U.S. NONBANK FINANCIAL COMPANY.— 

23 The term ‘U.S. nonbank financial company’ has the 

24 meaning given such term under section 102 of the 


emcdonald on DSK2BSOYB1PROD with BILLS
9 

•HR 6334 IH

1 Dodd-Frank Wall Street Reform and Consumer Pro2 tection Act. 

3 ‘‘(7) GEOGRAPHY.—The term ‘geography’ 

4 means a census tract delineated by the United 

5 States Bureau of the Census in the most recent de6 cennial census. 

7 ‘‘(8) ENTIRE COMMUNITY.—With respect to a 

8 financial institution whose business predominately 

9 consists of serving the needs of military personnel 

10 who are not located within a defined geographic 

11 area, such institution may define its ‘entire commu12 nity’ to include its entire deposit customer base 

13 without regard to geographic proximity.’’. 

14 (c) EVALUATIONS.—Section 804 of such Act (12 

15 U.S.C. 2903) is amended— 

16 (1) by redesignating subsections (c) and (d) as 

17 subsections (e) and (f), respectively; 

18 (2) by striking subsections (a) and (b) and in19 serting the following new subsections: 

20 ‘‘(a) DEPOSITORY INSTITUTIONS AND DEPOSITORY

21 INSTITUTION HOLDING COMPANIES.—In connection with 

22 its examination of a regulated financial institution other 

23 than a U.S. nonbank financial company, the appropriate 

24 Federal financial supervisory agency shall do the fol25 lowing: 


emcdonald on DSK2BSOYB1PROD with BILLS
10 

•HR 6334 IH

1 ‘‘(1) Assess the institution’s record of meeting 

2 the credit or other financial needs of its entire com3 munity, including low-income, moderate-income, and 

4 other traditionally underserved neighborhoods, con5 sistent with the safe and sound operation of such in6 stitution. 

7 ‘‘(2) Assess, with at least an equal weight to 

8 any other factor or test identified in the regulations 

9 prescribed by the appropriate Federal financial su10 pervisory agency to implement this Act, the commu11 nity development activities and those activities’ effec12 tiveness in meeting the financial needs of an institu13 tion’s entire community, including low- and mod14 erate-income neighborhoods, consistent with the safe 

15 and sound operation of such institution. 

16 ‘‘(3) Assess the following activities and those 

17 activities’ effectiveness in meeting the credit or other 

18 financial needs of an institution’s entire community, 

19 including low- and moderate-income neighborhoods, 

20 consistent with the safe and sound operation of such 

21 institution, unless the appropriate Federal financial 

22 supervisory agency determines that such assessment 

23 is not appropriate for a given regulated financial in24 stitution or class of regulated financial institutions 


emcdonald on DSK2BSOYB1PROD with BILLS
11 

•HR 6334 IH

1 because it engages in limited activities or is of a lim2 ited size: 

3 ‘‘(A) Lending activities other than loans 

4 considered under paragraph (1). 

5 ‘‘(B) Investment activities other than in6 vestments considered under paragraph (1). 

7 ‘‘(C) Retail financial services other than 

8 community development services considered 

9 under paragraph (1). 

10 ‘‘(4) Take such record into account in its eval11 uation of an application for a deposit facility by such 

12 institution. 

13 ‘‘(b) U.S. NONBANK FINANCIAL COMPANIES.—The 

14 appropriate Federal financial supervisory agency shall as15 sess the community development activities, including in16 vestments and loans where appropriate that benefit the 

17 community of the company, and those activities’ effective18 ness in meeting the credit or other financial needs of its 

19 entire community, including low-income, moderate-income, 

20 and other traditionally underserved neighborhoods, as ap21 propriate for the given regulated financial institution con22 sistent with the safe and sound operation of such com23 pany. 

24 ‘‘(c) REQUIREMENTS.— 


emcdonald on DSK2BSOYB1PROD with BILLS
12 

•HR 6334 IH

1 ‘‘(1) IN GENERAL.—In connection with its ex2 amination of a regulated financial institution under 

3 subsection (a) or (b), the appropriate Federal finan4 cial supervisory agency shall— 

5 ‘‘(A) take into consideration public com6 ment received by the appropriate Federal finan7 cial supervisory agency regarding the institu8 tion’s record of meeting the credit or other fi9 nancial needs of its entire community, including 

10 low-income, moderate-income, and other tradi11 tionally underserved neighborhoods; and 

12 ‘‘(B) require an improvement plan for an 

13 institution that receives a ‘Needs to improve 

14 record of meeting community credit or other fi15 nancial needs’ or a ‘Substantial noncompliance 

16 in meeting community credit or other financial 

17 needs’ rating on the institution’s written evalua18 tion, or such a rating in any individual assess19 ment area, and require such improvement plan 

20 to result in the reasonable likelihood that the 

21 institution will obtain a rating of at least ‘Satis22 factory record of meeting community credit or 

23 other financial needs’ in the relevant measure 

24 within 2 exam cycles. 

25 ‘‘(2) IMPROVEMENT PLAN.— 


emcdonald on DSK2BSOYB1PROD with BILLS
13 

•HR 6334 IH

1 ‘‘(A) IN GENERAL.—A regulated financial 

2 institution required to submit an improvement 

3 plan required under paragraph (1)(B) shall 

4 submit such plan in writing to the appropriate 

5 Federal financial supervisory agency no later 

6 than 60 days after receiving the notice that 

7 such plan will be required. 

8 ‘‘(B) PUBLIC COMMENT.—Upon receipt of 

9 an improvement plan required under paragraph 

10 (1)(B), the appropriate Federal financial super11 visory agency shall— 

12 ‘‘(i) make the plan available to the 

13 public for review and comment for a period 

14 of no less than 30 days; and 

15 ‘‘(ii) require the regulated financial 

16 institution to revise, as appropriate, the 

17 improvement plan in response to the public 

18 comments received under the public review 

19 and comment period described under 

20 clause (i) and submit such plan to the ap21 propriate Federal financial supervisory 

22 agency no later than 30 days after the end 

23 of such period. 

24 ‘‘(3) LIMITATION.—Public comment received 

25 pursuant to paragraph (2)(B) shall be limited to 


emcdonald on DSK2BSOYB1PROD with BILLS
14 

•HR 6334 IH

1 comments that directly address the regulated finan2 cial institution’s record of meeting the credit or 

3 other financial needs of the entire community, in4 cluding low-income, moderate-income, and other tra5 ditionally underserved neighborhoods. 

6 ‘‘(d) NONMINORITY OWNED AND NON-CDFI INSTI7 TUTION INVESTMENTS.—In assessing and taking into ac8 count, under subsections (a), (b), and (c), the record of 

9 a regulated financial institution that is a nonminority10 owned, nonwomen-owned institution and that is not a cer11 tified community development financial institution, the ap12 propriate Federal financial supervisory agency may con13 sider as a factor capital investment, loan participation, 

14 and other ventures undertaken by the regulated financial 

15 institution in cooperation with certified community devel16 opment financial institutions, minority- and women-owned 

17 financial institutions, and low-income credit unions, pro18 vided that these activities help meet the credit or other 

19 financial needs of local communities in which such institu20 tions and credit unions operate, including communities 

21 other than where such institutions and credit unions oper22 ate, if the regulated financial institution has adequately 

23 met the needs of its local assessment area.’’; 

24 (3) by adding at the end the following new sub25 sections: 


emcdonald on DSK2BSOYB1PROD with BILLS
15 

•HR 6334 IH

1 ‘‘(g) COMPLEX AND INNOVATIVE EFFORTS.—In as2 sessing and taking into account, under subsection (a), the 

3 record of a regulated financial institution, the appropriate 

4 Federal financial supervisory agency shall consider, as a 

5 factor, the complexity, innovativeness, effectiveness in 

6 meeting particularly difficult community needs, or signifi7 cant effort extended in specific loans, investments, or serv8 ices. 

9 ‘‘(h) RULE OF CONSTRUCTION.—An evaluation of a 

10 depository institution holding company shall incorporate 

11 evaluations of subsidiary regulated financial institutions 

12 made by each subsidiary’s appropriate Federal financial 

13 supervisory agency, if applicable.’’. 

14 (d) WRITTEN EVALUATIONS.—Section 807 of such 

15 Act (12 U.S.C. 2906) is amended— 

16 (1) in subsection (a)— 

17 (A) by striking ‘‘an insured depository in18 stitution’’ and inserting ‘‘a regulated financial 

19 institution’’; and 

20 (B) by inserting ‘‘or financial’’ after ‘‘cred21 it’’; 

22 (2) in subsection (b)— 

23 (A) in paragraph (1)— 

24 (i) in subparagraph (A)— 


emcdonald on DSK2BSOYB1PROD with BILLS
16 

•HR 6334 IH

1 (I) in clause (ii), by striking 

2 ‘‘and’’ at the end; 

3 (II) by redesignating clause (iii) 

4 as clause (v); and 

5 (III) by inserting after clause (ii) 

6 the following new clauses: 

7 ‘‘(iii) disclose whether the institution 

8 provided, or offered to provide, a consumer 

9 financial product that the Bureau of Con10 sumer Financial Protection has determined 

11 is unfair, deceptive, or abusive; 

12 ‘‘(iv) include specific responses to 

13 public comments received by the Federal 

14 financial supervisory agency regarding the 

15 institution; and’’; and 

16 (ii) by adding at the end the following 

17 new subparagraph: 

18 ‘‘(C) TREATMENT WITH RESPECT TO UN19 FAIR, DECEPTIVE, OR ABUSIVE CONSUMER FI20 NANCIAL PRODUCTS.—If the regulated financial 

21 institution provided, or offered to provide, one 

22 or more consumer financial products that the 

23 Bureau of Consumer Financial Protection has 

24 determined is unfair, deceptive, or abusive, the 

25 written evaluation shall be negatively influenced 


emcdonald on DSK2BSOYB1PROD with BILLS
17 

•HR 6334 IH

1 in a manner commensurate with the extent to 

2 which such product or products were offered or 

3 provided.’’; 

4 (B) in paragraph (2)— 

5 (i) by striking ‘‘paragraph (1)(C)’’ 

6 and inserting ‘‘paragraph (1)(A)(v)’’; and 

7 (ii) by striking subparagraphs (A), 

8 (B), (C), and (D) and inserting the fol9 lowing: 

10 ‘‘(A) ‘Satisfactory record of meeting com11 munity credit or other financial needs’. 

12 ‘‘(B) ‘Sufficient record of meeting commu13 nity credit or other financial needs’. 

14 ‘‘(C) ‘Needs to improve record of meeting 

15 community credit or other financial needs’. 

16 ‘‘(D) ‘Substantial noncompliance in meet17 ing community credit or other financial 

18 needs’.’’; and 

19 (C) by inserting after paragraph (2) the 

20 following new paragraph: 

21 ‘‘(3) APPLICATION FOR OUTSTANDING RAT22 ING.— 

23 ‘‘(A) IN GENERAL.—The appropriate Fed24 eral financial supervisory agencies shall develop 

25 and implement a process to permit a regulated 


emcdonald on DSK2BSOYB1PROD with BILLS
18 

•HR 6334 IH

1 financial institution to submit an application at 

2 the time the examination process is initiated for 

3 a rating of ‘Outstanding record of meeting com4 munity credit or other financial needs’. 

5 ‘‘(B) AVAILABILITY OF RATING.— 

6 ‘‘(i) IN GENERAL.—The rating de7 scribed under subparagraph (A) shall only 

8 be awarded to a regulated financial institu9 tion that— 

10 ‘‘(I) applies for such rating pur11 suant to subparagraph (A); 

12 ‘‘(II) significantly exceeds the re13 quirements to receive the rating de14 scribed under paragraph (2)(A); 

15 ‘‘(III) with respect to a regulated 

16 financial institution for which ratings 

17 are available for the three most recent 

18 examination cycles, received no less 

19 than a ‘Satisfactory record of meeting 

20 community credit or other financial 

21 needs’ or, for evaluations prior to the 

22 date of the enactment of the Amer23 ican Community Investment Reform 

24 Act of 2010, ‘Satisfactory record of 

25 meeting community credit needs’, for 


emcdonald on DSK2BSOYB1PROD with BILLS
19 

•HR 6334 IH

1 the three most recent examination cy2 cles; and 

3 ‘‘(IV) with respect to a deposi4 tory institution holding company or a 

5 regulated financial institution that 

6 controls one or more other regulated 

7 financial institutions, does not have a 

8 subsidiary regulated financial institu9 tion that received a rating of ‘Needs 

10 to improve record of meeting commu11 nity credit or other financial needs’ or 

12 less, or, for evaluations prior to the 

13 date of enactment of the American 

14 Community Investment Reform Act of 

15 2010, a rating of ‘Needs to improve 

16 record of meeting community credit 

17 needs’ or lower for the most recent ex18 amination cycle. 

19 ‘‘(ii) RULE OF CONSTRUCTION.—For 

20 purposes of clause (i)(IV), a rating given 

21 to a regulated financial institution prior to 

22 the control of such regulated financial in23 stitution by the relevant depository institu24 tion holding company or parent regulated 

25 financial institution as a subsidiary shall 


emcdonald on DSK2BSOYB1PROD with BILLS
20 

•HR 6334 IH

1 not bar the company from being granted a 

2 rating of ‘Outstanding record of meeting 

3 community credit or other financial needs’. 

4 ‘‘(C) EXPANDED ASSESSMENT AREA.—For 

5 purposes of determining whether to award a 

6 rating described under subparagraph (A), the 

7 appropriate Federal financial supervisory agen8 cy may consider community development activi9 ties, including investments made outside the in10 stitution’s service area if the regulated financial 

11 institution has adequately met the needs of its 

12 local assessment area.’’; 

13 (3) by redesignating subsections (d) and (e) as 

14 subsections (f) and (g), respectively; and 

15 (4) by inserting after subsection (c) the fol16 lowing new subsections: 

17 ‘‘(d) PRELIMINARY REPORT REQUIRED.— 

18 ‘‘(1) IN GENERAL.—The appropriate Federal fi19 nancial supervisory agency shall— 

20 ‘‘(A) prepare a preliminary report of the 

21 public section of the evaluation required under 

22 paragraph (a)(1); and 

23 ‘‘(B) provide the preliminary report to the 

24 regulated financial institution and to the public 


emcdonald on DSK2BSOYB1PROD with BILLS
21 

•HR 6334 IH

1 not less than 60 days before the date on which 

2 the corresponding written evaluation is issued. 

3 ‘‘(2) LIMITATION.—The preliminary report re4 quired under paragraph (1) shall not include any as5 signed rating or discussion of an assigned rating. 

6 ‘‘(e) PUBLIC COMMENT ON PRELIMINARY REPORT.— 

7 The appropriate Federal financial supervisory agency 

8 shall— 

9 ‘‘(1) develop and implement a process to seek 

10 and receive public comment on any preliminary re11 port for a period of 30 days following the release of 

12 the report; and 

13 ‘‘(2) incorporate into a revised written evalua14 tion any public comment received during such com15 ment period, as appropriate.’’. 

16 (e) EFFECTS OF ASSIGNED RATINGS.—Such Act is 

17 amended by adding at the end the following new section: 

18 ‘‘SEC. 810. EFFECTS OF ASSIGNED RATINGS. 

19 ‘‘(a) OUTSTANDING RATING.—A regulated financial 

20 institution that receives a rating of ‘outstanding record of 

21 meeting community credit or other financial needs’ on its 

22 most recent performance evaluation shall— 

23 ‘‘(1) be presumed to have satisfied consider24 ation of such regulated financial institution’s record 

25 of meeting the credit or other financial needs of its 


emcdonald on DSK2BSOYB1PROD with BILLS
22 

•HR 6334 IH

1 entire community in an application for a deposit fa2 cility; and 

3 ‘‘(2) be given preference over other regulated fi4 nancial institutions with lower ratings in connection 

5 with the award of Government contracts. 

6 ‘‘(b) SATISFACTORY RATING.—There shall be a re7 buttable presumption that a regulated financial institution 

8 that receives a rating of ‘satisfactory record of meeting 

9 community credit or other financial needs’ on its two most 

10 recent performance evaluations will have satisfied consid11 eration of such regulated financial institution’s record of 

12 meeting the credit or other financial needs of its entire 

13 community in an application for a deposit facility. 

14 ‘‘(c) NEEDS TO IMPROVE RATING.—A regulated fi15 nancial institution that receives a rating of ‘needs to im16 prove record of meeting community credit or other finan17 cial needs’ or lower on its two most recent performance 

18 evaluations shall be prohibited from— 

19 ‘‘(1) being awarded a Government contract in 

20 an amount greater than $500,000, unless such Fed21 eral department or agency proposing to enter into 

22 such contract determines that compliance with such 

23 prohibition imposes an undue burden or is unable to 

24 meet its needs with another institution; and 


emcdonald on DSK2BSOYB1PROD with BILLS
23 

•HR 6334 IH

1 ‘‘(2) making any capital distributions in the ag2 gregate during any calendar quarter that exceed 50 

3 percent of its net earnings during the previous quar4 ter without the prior approval of its appropriate 

5 Federal financial supervisory agency. 

6 ‘‘(d) SUBSTANTIAL NONCOMPLIANCE.—A regulated 

7 financial institution that receives a ‘substantial noncompli8 ance in meeting community credit or other financial needs’ 

9 rating on its most recent performance evaluations— 

10 ‘‘(1) may be ordered to restrict executive com11 pensation by its appropriate Federal financial super12 visory agency; 

13 ‘‘(2) shall be prohibited from being awarded a 

14 Government contract, unless such Federal depart15 ment or agency proposing to enter into such con16 tract determines that compliance with such prohibi17 tion imposes an undue burden or is unable to meet 

18 its needs with another institution; and 

19 ‘‘(3) shall be prohibited from making any cap20 ital distributions without the prior approval of its 

21 appropriate Federal financial supervisory agency.’’. 

Æ 


emcdonald on DSK2BSOYB1PROD with BILLS