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 jurisdic-
tion 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Reenergized Economic 
Sustainability for Community and Urban Entities Act for 
Black and Community Banks’’ or the ‘‘RESCUE Act for 
Black and Community Banks’’. 
VerDate Sep 11 2014 
21:28 Jan 08, 2019
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H41.IH
H41
pamtmann on DSKBFK8HB2PROD with BILLS
SEC. 2. REGULATION OF BLACK AND COMMUNITY BANKS. 
(a) OFFICE OF BLACK AND COMMUNITY BANKS.— 
(1) ESTABLISHMENT.—There is established 
within the Office of the Comptroller of the Currency 
an office to be known as the ‘‘Office of Black and 
Community Banks’’. 
(2) SUPERVISION AND EXAMINATION OF BLACK 
BANKS AND COMMUNITY BANKS.—The Comptroller 
of the Currency, acting through the Office of Black 
and Community Banks, shall supervise and examine 
Black banks and community banks. 
(3) REGULATORY RELIEF.— 
(A) IN GENERAL.—The Comptroller shall 
issue regulations to partially or completely ex-
empt Black banks and community banks from 
Federal banking statutes and regulations, to 
the extent the Comptroller determines it appro-
priate without endangering the safety and 
soundness of such banks. 
(B) TREATMENT
OF
MANUAL
UNDER-
WRITING.—For purposes of risk-based capital 
requirements for Black banks and community 
banks, the Comptroller shall issue regulations 
to assign a lower level of risk to loans that are 
issued by such banks using manual under-
VerDate Sep 11 2014 
21:28 Jan 08, 2019
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H41.IH
H41
pamtmann on DSKBFK8HB2PROD with BILLS
writing, in recognition of the individualized 
scrutiny provided by manual underwriting. 
(C) ENCOURAGING SMALL-DOLLAR LEND-
ING.—The Comptroller shall issue regulations 
to encourage affordable small-dollar lending by 
Black banks and community banks by providing 
regulatory flexibility with respect to such lend-
ing. 
(b) REGULATORY RELIEF UNDER THE SECURITIES 
LAWS.— 
(1) INVESTMENT PRODUCTS.—With respect to 
investment products sold by a Black bank or a com-
munity bank (or an affiliate of such bank) to indi-
viduals in the community in which such bank is lo-
cated, the Securities and Exchange Commission 
shall issue regulations to partially or completely ex-
empt the bank from the securities laws and regula-
tions issued under the securities laws, to the extent 
the Commission determines it appropriate without 
endangering the protection of investors. 
(2) SECURITIES.— 
(A) IN GENERAL.—The Securities and Ex-
change Commission shall issue regulations to 
reduce the regulatory burden applicable to 
Black banks and community banks— 
VerDate Sep 11 2014 
21:28 Jan 08, 2019
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H41.IH
H41
pamtmann on DSKBFK8HB2PROD with BILLS
(i) under the amendments made by 
the Jumpstart Our Business Startups Act; 
(ii) issuing mortgage-backed securi-
ties; and 
(iii) issuing securities backed by loans 
guaranteed by the Small Business Act. 
(B) CROWDFUNDING
EXEMPTION.—Sec-
tion 4A of the Securities Act of 1933 (15 
U.S.C. 77d–1) shall not apply to Black banks 
or community banks. 
(c) CONFORMING CHANGE TO DEFINITION OF AP-
PROPRIATE
FEDERAL
BANKING
AGENCY.—Section 
3(q)(1) of the Federal Deposit Insurance Act (12 U.S.C. 
1813(q)(1)) is amended— 
(1) in subparagraph (B), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (C), by adding ‘‘and’’ at 
the end; and 
(3) by adding at the end the following: 
‘‘(D) notwithstanding paragraphs (2) and 
(3), any Black bank or community bank (as 
such terms are defined under section 5 of the 
RESCUE Act for Black and Community 
Banks);’’. 
VerDate Sep 11 2014 
21:28 Jan 08, 2019
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H41.IH
H41
pamtmann on DSKBFK8HB2PROD with BILLS