I 

116TH CONGRESS 

1ST SESSION H. R. 41 

To provide regulatory relief for Black and community banks, to codify the 

Minority Bank Deposit Program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 3, 2019 

Mr. RUSH introduced the following bill; which was referred to the Committee 

on Financial Services, and in addition to the Committee on Ways and 

Means, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To provide regulatory relief for Black and community banks, 

to codify the Minority Bank Deposit Program, 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 ‘‘Reenergized Economic 

5 Sustainability for Community and Urban Entities Act for 

6 Black and Community Banks’’ or the ‘‘RESCUE Act for 

7 Black and Community Banks’’. 


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1 SEC. 2. REGULATION OF BLACK AND COMMUNITY BANKS. 

2 (a) OFFICE OF BLACK AND COMMUNITY BANKS.— 

3 (1) ESTABLISHMENT.—There is established 

4 within the Office of the Comptroller of the Currency 

5 an office to be known as the ‘‘Office of Black and 

6 Community Banks’’. 

7 (2) SUPERVISION AND EXAMINATION OF BLACK

8 BANKS AND COMMUNITY BANKS.—The Comptroller 

9 of the Currency, acting through the Office of Black 

10 and Community Banks, shall supervise and examine 

11 Black banks and community banks. 

12 (3) REGULATORY RELIEF.— 

13 (A) IN GENERAL.—The Comptroller shall 

14 issue regulations to partially or completely ex15 empt Black banks and community banks from 

16 Federal banking statutes and regulations, to 

17 the extent the Comptroller determines it appro18 priate without endangering the safety and 

19 soundness of such banks. 

20 (B) TREATMENT OF MANUAL UNDER21 WRITING.—For purposes of risk-based capital 

22 requirements for Black banks and community 

23 banks, the Comptroller shall issue regulations 

24 to assign a lower level of risk to loans that are 

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1 writing, in recognition of the individualized 

2 scrutiny provided by manual underwriting. 

3 (C) ENCOURAGING SMALL-DOLLAR LEND4 ING.—The Comptroller shall issue regulations 

5 to encourage affordable small-dollar lending by 

6 Black banks and community banks by providing 

7 regulatory flexibility with respect to such lend8 ing. 

9 (b) REGULATORY RELIEF UNDER THE SECURITIES

10 LAWS.— 

11 (1) INVESTMENT PRODUCTS.—With respect to 

12 investment products sold by a Black bank or a com13 munity bank (or an affiliate of such bank) to indi14 viduals in the community in which such bank is lo15 cated, the Securities and Exchange Commission 

16 shall issue regulations to partially or completely ex17 empt the bank from the securities laws and regula18 tions issued under the securities laws, to the extent 

19 the Commission determines it appropriate without 

20 endangering the protection of investors. 

21 (2) SECURITIES.— 

22 (A) IN GENERAL.—The Securities and Ex23 change Commission shall issue regulations to 

24 reduce the regulatory burden applicable to 

25 Black banks and community banks— 


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1 (i) under the amendments made by 

2 the Jumpstart Our Business Startups Act; 

3 (ii) issuing mortgage-backed securi4 ties; and 

5 (iii) issuing securities backed by loans 

6 guaranteed by the Small Business Act. 

7 (B) CROWDFUNDING EXEMPTION.—Sec8 tion 4A of the Securities Act of 1933 (15 

9 U.S.C. 77d–1) shall not apply to Black banks 

10 or community banks. 

11 (c) CONFORMING CHANGE TO DEFINITION OF AP12 PROPRIATE FEDERAL BANKING AGENCY.—Section 

13 3(q)(1) of the Federal Deposit Insurance Act (12 U.S.C. 

14 1813(q)(1)) is amended— 

15 (1) in subparagraph (B), by striking ‘‘and’’ at 

16 the end; 

17 (2) in subparagraph (C), by adding ‘‘and’’ at 

18 the end; and 

19 (3) by adding at the end the following: 

20 ‘‘(D) notwithstanding paragraphs (2) and 

21 (3), any Black bank or community bank (as 

22 such terms are defined under section 5 of the 

23 RESCUE Act for Black and Community 

24 Banks);’’. 


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1 SEC. 3. CODIFICATION OF THE MINORITY BANK DEPOSIT 

2 PROGRAM. 

3 (a) IN GENERAL.— 

4 (1) IN GENERAL.—Section 1204 of the Finan5 cial Institutions Reform, Recovery, and Enforcement 

6 Act of 1989 (12 U.S.C. 1811 note) is amended to 

7 read as follows: 

8 ‘‘SEC. 1204. EXPANSION OF USE OF MINORITY BANKS, WOM9 EN’S BANKS, AND LOW-INCOME CREDIT 

10 UNIONS. 

11 ‘‘(a) MINORITY BANK DEPOSIT PROGRAM.— 

12 ‘‘(1) ESTABLISHMENT.—There is established a 

13 program to be known as the ‘Minority Bank Deposit 

14 Program’ to expand the use of minority banks, wom15 en’s banks, and low-income credit unions. 

16 ‘‘(2) ADMINISTRATION.—The Secretary of the 

17 Treasury, acting through the Fiscal Service, shall— 

18 ‘‘(A) on application by a depository institu19 tion or credit union, certify whether such depos20 itory institution or credit union is a minority 

21 bank, women’s bank, or low-income credit 

22 union; 

23 ‘‘(B) maintain and publish a list of all de24 pository institutions and credit unions that have 

25 been certified pursuant to subparagraph (A); 


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1 ‘‘(C) periodically distribute the list de2 scribed in subparagraph (B) to— 

3 ‘‘(i) all Federal departments and 

4 agencies; 

5 ‘‘(ii) interested State and local govern6 ments; and 

7 ‘‘(iii) interested private sector compa8 nies; and 

9 ‘‘(D) support the creation of ratings, on10 line Black bank resources, and database prod11 ucts, including online lending and investment 

12 facilities. 

13 ‘‘(3) INCLUSION OF CERTAIN ENTITIES ON

14 LIST.—A depository institution or credit union that, 

15 on the date of the enactment of this section, has a 

16 current certification from the Secretary of the 

17 Treasury stating that such depository institution or 

18 credit union is a minority bank, women’s bank, or 

19 low-income credit union shall be included on the list 

20 described under paragraph (2)(B). 

21 ‘‘(b) EXPANDED USE AMONG FEDERAL DEPART22 MENTS AND AGENCIES.— 

23 ‘‘(1) IN GENERAL.—Not later than 1 year after 

24 the establishment of the program described in sub25 section (a), the head of each Federal department or 


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1 agency shall develop and implement standards and 

2 procedures to ensure, to the maximum extent pos3 sible as permitted by law, the use of minority banks, 

4 women’s banks, and low-income credit unions to 

5 serve the financial needs of each such department or 

6 agency. 

7 ‘‘(2) MINIMUM REQUIREMENT.—Notwith8 standing paragraph (1), the head of each Federal 

9 department or agency shall ensure that at least 10 

10 percent of the financial needs of each such depart11 ment or agency are met by the use of minority 

12 banks, women’s banks, and low-income credit 

13 unions. 

14 ‘‘(3) REPORT TO CONGRESS.—Not later than 2 

15 years after the establishment of the program de16 scribed in subsection (a), and annually thereafter, 

17 the head of each Federal department or agency shall 

18 submit to Congress a report on the actions taken to 

19 increase the use of minority banks, women’s banks, 

20 and low-income credit unions to serve the financial 

21 needs of each such department or agency. 

22 ‘‘(c) DEFINITIONS.—For purposes of this section: 

23 ‘‘(1) CREDIT UNION.—The term ‘credit union’ 

24 has the meaning given the term ‘insured credit 


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1 union’ in section 101 of the Federal Credit Union 

2 Act (12 U.S.C. 1752). 

3 ‘‘(2) DEPOSITORY INSTITUTION.—The term ‘de4 pository institution’ has the meaning given the term 

5 ‘insured depository institution’ in section 3 of the 

6 Federal Deposit Insurance Act (12 U.S.C. 1813). 

7 ‘‘(3) LOW-INCOME CREDIT UNION.—The term 

8 ‘low-income credit union’ means any entity described 

9 in section 19(b)(1)(A)(iv) of the Federal Reserve 

10 Act. 

11 ‘‘(4) MINORITY.—The term ‘minority’ means 

12 any Black American, Native American, Hispanic 

13 American, or Asian American. 

14 ‘‘(5) MINORITY BANK.—The term ‘minority 

15 bank’ means any bank described in clause (i), (ii), 

16 or (iii) of section 19(b)(1)(A) of the Federal Reserve 

17 Act for which— 

18 ‘‘(A) more than 50 percent of the out19 standing shares of which are held by 1 or more 

20 minority individuals; 

21 ‘‘(B) the majority of the directors on the 

22 board of directors of which are minority individ23 uals; and 


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1 ‘‘(C) a significant percentage of senior 

2 management positions of which are held by mi3 nority individuals. 

4 ‘‘(6) WOMEN’S BANK.—The term ‘women’s 

5 bank’ means any bank described in clause (i), (ii), 

6 or (iii) of section 19(b)(1)(A) of the Federal Reserve 

7 Act for which— 

8 ‘‘(A) more than 50 percent of the out9 standing shares of which are held by 1 or more 

10 women; 

11 ‘‘(B) the majority of the directors on the 

12 board of directors of which are women; and 

13 ‘‘(C) a significant percentage of senior 

14 management positions of which are held by 

15 women.’’. 

16 (2) CONFORMING AMENDMENTS.—The fol17 lowing provisions are amended by striking 

18 ‘‘1204(c)(3)’’ and inserting ‘‘1204(c)’’: 

19 (A) Section 808(b)(3) of the Community 

20 Reinvestment Act of 1977 (12 U.S.C. 

21 2907(b)(3)). 

22 (B) Section 40(g)(1)(B) of the Federal De23 posit Insurance Act (12 U.S.C. 

24 1831q(g)(1)(B)). 


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1 (C) Section 704B(h)(4) of the Equal Cred2 it Opportunity Act (15 U.S.C. 1691c–2(h)(4)). 

3 (b) AMENDMENTS TO THE COMMUNITY REINVEST4 MENT ACT.—Section 804(b) of the Community Reinvest5 ment Act of 1977 (12 U.S.C. 2903(b)) is amended to read 

6 as follows: 

7 ‘‘(b) COOPERATION WITH MINORITY BANKS, 

8 WOMEN’S BANKS, AND LOW-INCOME CREDIT UNIONS

9 CONSIDERED.— 

10 ‘‘(1) IN GENERAL.—In assessing and taking 

11 into account, under subsection (a), the record of a 

12 financial institution, the appropriate Federal finan13 cial supervisory agency shall consider as a factor 

14 capital investment, loan participation, and other ven15 tures undertaken by the institution in cooperation 

16 with minority banks, women’s banks, community de17 velopment financial institutions, and low-income 

18 credit unions provided that these activities help meet 

19 the credit needs of local communities in which such 

20 institutions and credit unions are chartered. 

21 ‘‘(2) DEFINITIONS.— 

22 ‘‘(A) FIRREA DEFINITIONS.—The terms 

23 ‘low-income credit union’, ‘minority bank’, and 

24 ‘women’s bank’ have the meanings given such 

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1 nancial Institutions Reform, Recovery, and En2 forcement Act of 1989 (12 U.S.C. 1811 note). 

3 ‘‘(B) COMMUNITY DEVELOPMENT FINAN4 CIAL INSTITUTION.—The term ‘community de5 velopment financial institution’ has the meaning 

6 given in section 103(5) of the Riegle Commu7 nity Development and Regulatory Improvement 

8 Act of 1994 (12 U.S.C. 4702(5)).’’. 

9 (c) CONSIDERATIONS WHEN ASSESSING FINANCIAL

10 INCLUSION FOR FEDERALLY CHARTERED FINANCIAL IN11 STITUTIONS.— 

12 (1) IN GENERAL.—In assessing and taking into 

13 account the record of a federally chartered financial 

14 institution under any financial inclusion assessment 

15 process created by the Comptroller of the Currency 

16 in any rule relating to the chartering of a financial 

17 institution, the Comptroller shall consider as a fac18 tor capital investment, loan participation, and other 

19 ventures undertaken by the bank in cooperation with 

20 Black banks, women’s banks, community develop21 ment financial institutions, and low-income credit 

22 unions, provided that these activities help meet the 

23 financial needs of local communities in which the 

24 federally chartered financial institution provides fi25 nancial products or services. 


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1 (2) DEFINITIONS.—For purposes of this sec2 tion: 

3 (A) COMMUNITY DEVELOPMENT FINAN4 CIAL INSTITUTION.—The term ‘‘community de5 velopment financial institution’’ has the mean6 ing given in section 103(5) of the Riegle Com7 munity Development and Regulatory Improve8 ment Act of 1994 (12 U.S.C. 4702(5)). 

9 (B) FINANCIAL INCLUSION ASSESSMENT

10 PROCESS.—The term ‘‘financial inclusion as11 sessment process’’ means any process relating 

12 to the chartering of a financial institution 

13 whereby the Comptroller of the Currency as14 sesses and takes into account the financial in15 stitution’s record of meeting the financial needs 

16 of the bank’s entire community, including low17 and moderate-income neighborhoods, consistent 

18 with the safe and sound operation of such bank. 

19 (C) FINANCIAL PRODUCT OR SERVICE.— 

20 The term ‘‘financial product or service’’ has the 

21 meaning given such term in section 1002 of the 

22 Dodd-Frank Wall Street Reform and Consumer 

23 Protection Act (12 U.S.C. 5481). 

24 (D) FIRREA DEFINITIONS.—The terms 

25 ‘‘low-income credit union’’ and ‘‘women’s bank’’ 


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1 have the meanings given such terms, respec2 tively, in section 1204(c) of the Financial Insti3 tutions Reform, Recovery, and Enforcement Act 

4 of 1989 (12 U.S.C. 1811 note). 

5 SEC. 4. GAO STUDIES. 

6 (a) NEW MARKETS TAX CREDIT STUDY.—The 

7 Comptroller General of the United States shall carry out 

8 a study on the award of the new markets tax credit by— 

9 (1) surveying communities and specifically talk10 ing to Black banks, community banks, and CDFIs 

11 that wish to receive the tax credit about why they 

12 are not receiving the tax credit; 

13 (2) determining where the tax credit money ac14 tually went and what it was used for; and 

15 (3) to the extent possible, using a case study 

16 approach. 

17 (b) LOWER-VALUE HOME MORTGAGE LOAN

18 STUDY.—The Comptroller General of the United States 

19 shall carry out a study on mortgage loans with a principal 

20 amount of $100,000 or less, including— 

21 (1) who is making such loans currently; 

22 (2) how communities are encouraging such 

23 loans; 

24 (3) what changes could encourage banks and 

25 other persons to provide more such loans; and 


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1 (4) any statutory or regulatory changes that 

2 the Comptroller believes may be needed to encourage 

3 more such loans. 

4 (c) BLOCKCHAIN STUDY.—The Comptroller General 

5 of the United States shall carry out a study on blockchain 

6 technology and whether such technology could be used to 

7 increase investment by lower-income individuals in start8 ups and other crowd-funded companies. 

9 SEC. 5. DEFINITIONS. 

10 For purposes of this Act: 

11 (1) BLACK BANK.—The term ‘‘Black bank’’ 

12 means an insured depository institution— 

13 (A) more than 50 percent of the ownership 

14 or control of which is held by 1 or more Black 

15 individuals; and 

16 (B) more than 50 percent of the net profit 

17 or loss of which accrues to 1 or more Black in18 dividuals. 

19 (2) CDFI.—The term ‘‘CDFI’’ has the mean20 ing given the term ‘‘community development finan21 cial institution’’ under section 103 of the Commu22 nity Development Banking and Financial Institu23 tions Act of 1994. 


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1 (3) COMMUNITY BANK.—The term ‘‘community 

2 bank’’ means an insured depository institution with 

3 less than $100,000,000 in consolidated assets. 

4 (4) COMPTROLLER.—The term ‘‘Comptroller’’ 

5 means the Comptroller of the Currency, except when 

6 used in the context of the Comptroller General of 

7 the United States. 

8 (5) INSURED CREDIT UNION.—The term ‘‘in9 sured credit union’’ has the meaning given such 

10 term under section 101 of the Federal Credit Union 

11 Act. 

12 (6) INSURED DEPOSITORY INSTITUTION.—The 

13 term ‘‘insured depository institution’’— 

14 (A) has the meaning given such term 

15 under section 3 of the Federal Deposit Insur16 ance Act; and 

17 (B) includes an insured credit union. 

18 (7) SECURITIES LAWS.—The term ‘‘securities 

19 laws’’ has the meaning given such term under sec20 tion 3 of the Securities Exchange Act of 1934 (15 

21 U.S.C. 78c). 

Æ 


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