atives and the Committee on Banking, Housing, and
Urban Affairs of the Senate.
(2) RECOMMENDATIONS.—The report shall con-
tain any recommendations with respect to capital
standards that the Secretary of the Treasury may
determine to be appropriate.
(c) DEFINITIONS.—For purposes of this section, the
terms ‘‘Federal banking agency’’ and ‘‘insured depository
institution’’ have the meanings given to such terms in sec-
tion 3 of the Federal Deposit Insurance Act.
SEC. 132. STUDY OF THE CONSUMER CREDIT SYSTEM.
(a) IN GENERAL.—The Secretary of the Treasury, in
consultation with the Board of Governors of the Federal
Reserve System, the Administrator of the Small Business
Administration, the Secretary of Housing and Urban De-
velopment, and the other Federal banking agencies, shall
conduct a study of the manner in which and the extent
to which credit is made available for consumers and small
businesses in order to identify procedures which have the
effect of—
(1) reducing the amount of credit available for
such purposes or the number of persons eligible for
such credit; and
(2) increasing the level of consumer inconven-
ience, cost, and time delays in connection with the
extension consumer and small business credit with-
out any corresponding benefit with respect to the
protection of consumers or small businesses or the
safety and soundness of insured depository institu-
tions.
(b) REPORT.—
(1) IN GENERAL.—Before the end of the 1-year
period beginning on the date of the enactment of
this Act, the Secretary of the Treasury shall submit
report on the findings and conclusions of the Sec-
retary with respect to the study conducted under
subsection (a) to the Committee on Banking, Fi-
nance and Urban Affairs of the House of Represent-
atives and the Committee on Banking, Housing, and
Urban Affairs of the Senate.
(2) RECOMMENDATIONS.—The report shall con-
tain any recommendations for administrative action
that the Secretary of the Treasury may determine to
be appropriate.
SEC. 133. 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 consulta-
tion with the Federal Deposit Insurance Corporation and
the National Credit Union Administration, shall conduct
a study and report to Congress on—
(1) the necessity, for monetary policy purposes,
of continuing to require insured depository institu-
tions to maintain sterile reserves;
(2) the appropriateness of paying a market rate
of interest to insured depository institutions on ster-
ile reserves or, in the alternative, providing for pay-
ment 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 depos-
itory 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 pro-
viders 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 Di-
rector of the Office of Management and Budget and the
Director of the Congressional Budget Office, in consulta-
tion with the Committees on the Budget of the Senate and
the House of Representatives, shall each 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.
(c) INSURED DEPOSITORY INSTITUTION DEFINED.—
For purposes of this section, the term ‘‘insured depository
institution’’—
(1) has the meaning given to such term in sec-
tion 3(c) of the Federal Deposit Insurance Act; and
(2) includes an insured credit union (as defined
in section 101 of the Federal Credit Union Act).
SEC. 134. STREAMLINING OF REGULATORY REQUIRE-
MENTS.
(a) REVIEW OF REGULATIONS; REGULATORY UNI-
FORMITY.—During the 2-year period beginning on the
date of enactment of this Act, each Federal banking agen-
cy 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 to—
(A) streamline those regulations and poli-
cies in order to improve efficiency, reduce un-
necessary costs, and eliminate unwarranted con-
straints on credit availability;
(B) remove inconsistencies and outmoded
and duplicative requirements; and
(C) with respect to regulations prescribed
pursuant to section 18(o) of the Federal De-
posit Insurance Act, consider the impact that
such standards have on the availability of credit
for small business, residential, and agricultural
purposes, and on low- and moderate-income
communities;
(2) work jointly with the other Federal banking
agencies to make uniform all regulations and guide-
lines implementing common statutory or supervisory
policies; and
(3) review the continuing appropriateness of
collecting data for purposes of the Fair Housing Act
which is not required to be collected under the Home
Mortgage Disclosure Act of 1975.
(b) REPORT TO CONGRESS.—The Federal banking
agencies shall submit a joint report to the Congress annu-
ally for 3 years following the date of the enactment of this
Act detailing the progress of the agencies in carrying out
the requirements of subsection (a).
SEC. 135. CALL REPORT SIMPLIFICATION.
(a) MODERNIZATION OF CALL REPORT FILING AND
DISCLOSURE SYSTEM.—In order to reduce the adminis-
trative requirements pertaining to bank reports of condi-
tion, savings association financial reports, and bank hold-
ing company consolidated financial statements, and to im-
prove 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 state-
ments 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 en-
actment of this Act, report to the Congress and
make recommendations for legislation that would en-
hance efficiency for filers and users of such reports
and statements.
(b) UNIFORM REPORTS AND SIMPLIFICATION OF IN-
STRUCTIONS.—The Federal banking agencies shall, con-
sistent 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 state-
ments 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 sched-
ules supplementing the core information referred to
in subsection (b); and
(2) eliminate requirements that are not war-
ranted for reasons of safety and soundness or other
public purposes.
SEC. 136. ADMINISTRATIVE CONSIDERATION OF BURDEN
WITH NEW REGULATIONS.
(a) IN GENERAL.—In determining the effective date
and administrative compliance requirements for new regu-
lations that impose additional reporting, disclosure, or
other requirements on insured depository institutions,
each Federal banking agency (as defined in section 3 of
the Federal Deposit Insurance Act) shall consider, consist-
ent with the principles of safety and soundness and the
public interest—
(1) any administrative burdens that such regu-
lations would place on depository institutions, in-
cluding small depository institutions, and customers
of depository institutions; and
(2) the benefits of such regulations.
(b) ADEQUATE TRANSITION PERIOD FOR NEW REG-
ULATIONS.—No new regulation issued by a Federal bank-
ing agency which imposes additional reporting, disclosure
or other requirements on insured depository institutions
shall take effect on the 1st day of the calendar quarter
which begins at or after the end of the 90-day period be-
ginning on the date the regulations are published in final
form unless—
(1) the agency makes a finding that—
(A) an emergency exists which requires the
regulation to take effect before the 1st day of
such calendar quarter; or
(B) a delay would have a substantial im-
pact upon the safety and soundness of insured
depository institutions; or
(2) the regulation is required to take effect be-
fore the 1st day of such calendar quarter pursuant
to any other provision of law.
SEC. 137. ELIMINATION OF DUPLICATIVE FILINGS.
The Federal banking agencies (as defined in section
3 of the Federal Deposit Insurance Act) shall work joint-
ly—
(1) to eliminate, to the extent practicable, du-
plicative or otherwise unnecessary requests for infor-
mation in connection with applications or notices to
the agencies; and
(2) to harmonize, to the extent practicable, any
inconsistent publication and public notice require-
ments.
SEC. 138. RECOURSE AGREEMENTS.
The Federal banking agencies (as defined in section
3(z) of the Federal Deposit Insurance Act) shall jointly—
(1) review the manner in which loans sold with
recourse by insured depository institutions are treat-
ed under capital standards and other accounting
principles applicable with respect to such insured de-
pository institutions; and
(2) issue an appropriate revision to any such
standard or principle (which may not be less strin-
gent than generally accepted accounting principles)
before the end of the 180-day period beginning on
the date of the enactment of this Act.
SEC. 139. ANTITRUST REPORTS IN CONNECTION WITH
MERGER TRANSACTIONS.
The last sentence of 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 the following :‘‘,
unless the agency is advised by the other 2 banking agen-
cies before such date that the reports required under para-
graph (4) on the anticompetitive effects of the transaction
are not necessary because none of the effects described
in paragraph (5) is likely to occur as a result of the trans-
action’’.
SEC. 140. BANKERS’ BANKS.
(a) OWNERSHIP BY BANKERS’ BANKS.—OWNERSHIP
BY DEPOSITORY INSTITUTION HOLDING COMPANIES.—
(1) PROVISION RELATING TO NATIONAL BANK
INVESTMENTS.—The 5th proviso of the 7th undesig-
nated paragraph of section 5136 of the Revised
Statutes of the United States (12 U.S.C. 24) is
amended—
(A) by inserting ‘‘or by depository institu-
tion holding companies (as defined in section
3(w) of the Federal Deposit Insurance Act)’’
after ‘‘is owned exclusively (except to the extent
directors’ qualifying shares are required by law)
by depository institutions’’; and
(B) by striking ‘‘employees’’ and inserting
‘‘employees (any such bank or company is com-
monly referred to as a ‘bankers’ bank’)’’.
(2) PROVISION RELATING TO NATIONAL BANK
CHARTERS.—Section 5169(b)(1) of the Revised
Statutes of the United States (12 U.S.C. 27(b)(1))
is amended—
(A) by inserting ‘‘or by depository institu-
tion holding companies (as defined in section
3(w) of the Federal Deposit Insurance Act)’’
after ‘‘is owned exclusively (except to the extent
directors’ qualifying shares are required by law)
by other depository institutions’’; and
(B) by striking ‘‘employees’’ and inserting
‘‘employees (such association is commonly re-
ferred to as a ‘bankers’ bank’)’’.
(b) OWNERSHIP BY SAVINGS ASSOCIATIONS.—Sec-
tion 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 sav-
ings association may purchase, for the associa-
tion’s own account, shares of stock of a bank-
ers’ bank or holding company described in the
5th proviso of the 7th undesignated paragraph
of section 5136 of the Revised Statutes of the
United States or section 5169(b) of such Re-
vised Statutes on the same terms and condi-
tions 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) DEPOSITORY
INSTITUTION
MANAGEMENT
INTERLOCKS ACT AMENDMENT.—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’’ the 1st place such term ap-
pears and all that follows through ‘‘the surplus of
such other bank; or’’ and inserting ‘‘which is a
bankers’ bank described in the 5th proviso of the
7th undesignated paragraph of section 5136 of the
Revised Statutes of the United States; or’’.
SEC. 141. DUE PROCESS PROTECTIONS RELATING TO AT-
TACHMENT OF ASSETS.
Section 8 of the Federal Deposit Insurance Act (12
U.S.C. 1818) is amended—
(1) by striking subsection (i)(4)(B) and insert-
ing the following new subparagraph:
‘‘(B) STANDARD.—
‘‘(i) SHOWING.—Rule 65 of the Fed-
eral Rules of Civil Procedure shall apply
with respect to any proceeding under sub-
paragraph (A) without regard to the re-
quirement of such rule that the applicant
show that the injury, loss, or damage is ir-
reparable and immediate.
‘‘(ii) STATE PROCEEDING.—If, in the
case of any proceeding in a State court,
the court determines that rules of civil pro-
cedure available under the laws of such
State provide substantially similar protec-
tions to such party’s right to due process
as Rule 65 (as modified with respect to
such proceeding by clause (i)), the relief
sought under subparagraph (A) may be re-
quested under the laws of such State.’’;
and
(2) in subsection (b), by adding the following
new paragraph:
‘‘(9) STANDARD
FOR
CERTAIN
ORDERS.—No
authority under this subsection or subsection (c) to
prohibit any institution-affiliated party from with-
drawing, transferring, removing, dissipating, or dis-
posing of any funds, assets, or other property may
be exercised unless the agency meets the standards
of Rule 65 of the Federal Rules of Civil Procedure
without regard to the requirement of such rule that
the applicant show that the injury, loss, or damage
is irreparable and immediate.’’.
TITLE II—COMMUNITY DEVEL-
OPMENT FINANCIAL INSTITU-
TIONS
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Community Develop-
ment Banking and Financial Institutions Act of 1993’’.
SEC. 202. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) many of the Nation’s urban and rural com-
munities and Indian reservations 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 coordi-
nated development strategies, intensive supportive
services, and increased access to capital and credit
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 com-
munity;
(3) in many urban and rural communities, low-
and moderate-income neighborhoods, and Indian res-
ervations, there is a shortage of capital and credit
for business and affordable housing;
(4) access to capital and credit is essential to
unleash the untapped entrepreneurial energy of
America’s poorest communities and to empower indi-
viduals and communities to become self-sufficient;
and
(5) community development financial institu-
tions have proven their ability to identify and re-
spond to community needs for capital, credit, and
development services in the absence of, or as a com-
plement to, services provided by other lenders.
(b) PURPOSE.—The purpose of this title is to create
a Community Development Banking and Financial Insti-
tutions Fund that will support a program of investment
in and assistance to community development financial in-
stitutions. The Community Development Banking and Fi-
nancial Institutions Fund will provide financial and tech-
nical assistance, including training, to community develop-
ment financial institutions, serve as a national information
clearinghouse, and be an institutional voice for community
development. The community development financial insti-
tutions that the Community Development Banking and
Financial Institutions Fund supports will provide capital,
credit, and development services to targeted investment
areas or populations, and will promote economic revitaliza-
tion and community development.
SEC. 203. DEFINITIONS.
(a) APPROPRIATE FEDERAL BANKING AGENCY.—
The term ‘‘appropriate Federal banking agency’’ has the
same meaning given such term in section 3(q) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1813(q)).
(b) COMMUNITY DEVELOPMENT FINANCIAL INSTI-
TUTION.—The term ‘‘community development financial in-
stitution’’ means any bank, savings association, depository
institution holding company, credit union, micro-enter-
prise loan fund, community development corporation, com-
munity development revolving loan fund, minority-owned
or other insured depository institution, or non-depository
organization that—
(1) has as its primary mission the promotion of
community development through the provision of
capital, credit, or development services in its invest-
ment areas or to targeted populations; and
(2) encourages, through representation on its
governing board or otherwise, the input of residents
in the investment area or the targeted populations.
A depository institution holding company may qualify as
a community development financial institution only if the
holding company and its subsidiaries collectively satisfy
the requirements of paragraphs (1) and (2). No subsidiary
of a depository institution holding company may qualify
as a community development financial institution if the
holding company and its subsidiaries collectively do not
meet the requirements of paragraphs (1) and (2). The
term ‘‘community development financial institution’’ does
not include an agency or instrumentality of the United
States or an agency or instrumentality of any State or
political subdivision thereof.
(c) DEPOSITORY
INSTITUTION
HOLDING
COM-
PANY.—The term ‘‘depository institution holding com-
pany’’ has the same meaning given such term in section
3(w) of the Federal Deposit Insurance Act (12 U.S.C.
1813(w)).
(d) DEVELOPMENT SERVICES.—The term ‘‘develop-
ment services’’ means activities conducted by a community
development financial institution that promote community
development by developing, supporting, and strengthening
the lending, investment, and capacity-building activities
undertaken by institutions, including, but not limited to—
(1) business planning services;
(2) financial and credit counseling services;
(3) marketing and management assistance; and
(4) administrative activities associated with
lending or investment.
(e) INSURED COMMUNITY DEVELOPMENT FINANCIAL
INSTITUTION.—The term ‘‘insured community develop-
ment financial institution’’ means any community develop-
ment financial institution that is an insured depository in-
stitution. The term also includes an insured credit union
which has been designated as low-income by the National
Credit Union Administration.
(f) INSURED CREDIT UNION.—The term ‘‘insured
credit union’’ has the same meaning given such term in
section 101(7) of the Federal Credit Union Act (12 U.S.C.
1752(7)).
(g) INSURED DEPOSITORY INSTITUTION.—The term
‘‘insured depository institution’’ has the same meaning
given such term in section 3(c) of the Federal Deposit In-
surance Act (12 U.S.C. 1813(c)).
(h) INVESTMENT
AREA.—The term ‘‘investment
area’’ means an identifiable community that—
(1) meets objective criteria of distress, including
the number of low-income families, the extent of
poverty, the extent of unemployment, the extend of
unmet credit needs, the degree of availability of
basic financial services, the degree of limited access
to capital and credit provided by existing financial
institutions, and other factors that the Fund deter-
mines to be appropriate; or
(2) is located in an empowerment zone or enter-
prise community designated under section 1391 of
the Internal Revenue Code of 1986.
(i) QUALIFIED COMMUNITY DEVELOPMENT FINAN-
CIAL INSTITUTION.—The term ‘‘qualified community de-
velopment financial institution’’ means a community devel-
opment financial institution that meets the requirements
of sections 5(b) (2) through (8) of this title.
(j) TARGETED POPULATION.—The term ‘‘targeted
population’’ means an identifiable group of low-income or
disadvantaged persons that are underserved by existing
financial institutions.
SEC. 204. ESTABLISHMENT OF NATIONAL FUND FOR COM-
MUNITY DEVELOPMENT BANKING.
(a) IN GENERAL.—There is hereby established a cor-
porate to be known as the Community Development Bank-
ing and Financial Institutions Fund (hereafter in this title
referred to as the ‘‘Fund’’) that shall have the powers and
responsibilities specified by this Act. The Fund shall have
succession until dissolved. The charter of the Fund may
be revised, amended, or modified by Congress at any time.
The offices of the Fund shall be in Washington, D.C.
(b) BOARD OF DIRECTORS.—
(1) IN
GENERAL.—The powers and manage-
ment of the Fund shall be vested in a Board of Di-
rectors (hereafter referred to in this title as the
‘‘Board’’), which shall have nine members.
(2) MEMBERS.—The members of the Board
shall consist of the following:
(A) The Secretary of Agriculture.
(B) The Secretary of Commerce.
(C) The Secretary of Housing and Urban
Development.
(D) The Secretary of the Treasury.
(E) The Administrator of the Small Busi-
ness Administration.
(F) Four private citizens, appointed by the
President with the advice and consent of the
Senate, that collectively—
(i) represent community groups whose
constituencies include low-income persons
or residents of investment areas,
(ii) have expertise in the operations
and activities of insured depository institu-
tions, and
(iii) have expertise in community de-
velopment and lending; provided that there
should not be less than one member from
each of the three categories described in
clauses (i) through (iii) of this subpara-
graph.
(3) CHAIRPERSON.—The President shall ap-
point from among the members of the Board speci-
fied in paragraph (2)(F) a chairperson of the Board,
who shall serve at the pleasure of the President for
a term of two years.
(4) VICE-CHAIRPERSON.—The President shall
appoint from among the members specified in para-
graph (2) a vice-chairperson who will serve as chair-
person in the absence, disability, or recusal of the
chairperson. The vice-chairperson shall serve at the
pleasure of the President for a term of two years.
(5) TERMS OF APPOINTED MEMBERS.—
(A) IN
GENERAL.—Each member ap-
pointed pursuant to paragraph (2)(F) shall
serve at the pleasure of the President for a
term of four years, except as provided in para-
graph (5)(C).
(B) VACANCIES.—Any member appointed
to fill a vacancy occurring prior to the expira-
tion of the term for which the previous member
was appointed shall be appointed for the re-
mainder of such term. Appointed members may
continue to serve following the expiration of
their terms until a successor is appointed and
qualified.
(C) TERMS.—The terms of the initial ap-
pointed members shall be for four years and
shall begin on the date each member is ap-
pointed, except that two of the members ini-
tially appointed pursuant to paragraph (2)(F)
shall be designated to serve at the pleasure of
the President for five years.
(6) ACTING OFFICIALS.—In the event of a va-
cancy or absence of the individual in any of the of-
fices described in paragraphs (2) (A) through (E),
the official acting in that office shall be a member
of the Board.
(7) AUTHORITY TO DELEGATE.—Each member
of the Board specified in paragraphs (2) (A)
through (E) may designate another official who has
been appointed by the President with the advice and
consent of the Senate within the same agency to
serve as a member in his or her stead.
(8) COMPENSATION.—Members of the Board
who are otherwise officers or employees of the
United States shall serve without additional com-
pensation for their duties as members, but shall be
reimbursed by the Fund for travel, per diem, and
other necessary expenses incurred in the perform-
ance of their duties, in accordance with sections
5702 and 5703 of title 5, United States Code. The
appointed members of the Board shall be entitled to
receive compensation at the daily equivalent of the
rate for a position under Level IV of the Executive
Schedule under section 5315 of title 5, United
States Code, and shall be reimbursed by the Fund
for travel, per diem, and other necessary expenses
incurred in the performance of their duties, in ac-
cordance with sections 5702 and 5703 of title 5,
United States Code.
(9) MEETINGS.—The Board shall hold meetings
at least quarterly. Special meetings of the Board
may be called by the Chairperson or on the written
request of three members of the Board. A majority
of the members of the Board in office shall con-
stitute a quorum.
(c) OFFICERS AND EMPLOYEES.—The Board shall
appoint a Chief Executive Officer who will be responsible
for the management of the Fund and such other duties
deemed appropriate by the Board. The Board shall ap-
point a Chief Financial Officer who shall oversee all of
the financial management activities of the Fund. The
Board shall also appoint an Inspector General. The Board
may appoint such other officers and employees of the
Fund as the Board determines to be necessary or appro-
priate. The Chief Executive Officer, Chief Financial Offi-
cer, and up to 3 other officers of the Fund may be ap-
pointed without regard to the provisions of title 5 of the
United States Code governing appointments in the Fed-
eral service and compensated without regard to chapter
51 and subchapter III of chapter 53 of title 5 of the
United States Code, except that the rate of pay for the
Chief Executive Officer shall not exceed the rate for a po-
sition under Level II of the Executive Schedule under sec-
tion 5313 of title 5 of the United States Code and the
rate of pay for the remaining four officers shall not exceed
the rate for a position under Level IV of the Executive
Schedule under section 5315 of title 5 of the United States
Code.
(d) GENERAL POWERS.—In carrying out its powers
and duties, the Fund—
(1) shall have all necessary and proper powers
to carry out its authority under this title;
(2) may adopt, alter, and use a corporate seal,
which shall be judicially noticed;
(3) may sue and be sued in its corporate name
and complain and defend in any court of competent
jurisdiction;
(4) may adopt, amend, and repeal bylaws, rules,
and regulations governing the manner in which its
business may be conducted and shall have power to
make such rules and regulations as may be nec-
essary or appropriate to implement the provisions of
this title;
(5) may enter into and perform such agree-
ments, contracts, and transactions as may be
deemed necessary or appropriate to the conduct of
activities authorized under this title;
(6) may determine the character of and neces-
sity for its expenditures and the manner in which
they shall be incurred, allowed, and paid;
(7) may utilize or employ the services of person-
nel of any agency or instrumentality of the United
States with the consent of the agency or instrumen-
tality 
concerned 
on 
a 
reimbursable 
or
nonreimbursable basis; and
(8) may execute all instruments necessary or
appropriate in the exercise of any of its functions
under this title and may delegate to the members of
the Board, to the Chief Executive Officer, or the of-
ficers of the Fund such of its powers and respon-
sibilities as it deems necessary or appropriate for the
administration of the Fund.
(e) 
WHOLLY-OWNED
GOVERNMENT
CORPORA-
TION.—
(1) The Fund shall be a wholly-owned Govern-
ment corporation in the Executive branch and shall
be treated in all respects as an agency of the United
States, except to the extent this title provides other-
wise.
(2) Section 9101(3) of title 31, United States
Code, is amended—
(A) by redesignating paragraphs (B)
through (M) as paragraphs (C) through (N),
respectively; and
(B) by inserting after paragraph (A) the
following:
‘‘(B) the Community Development Banking and
Financial Institutions Fund.’’; and
(3) Section 9107(b) of title 31, United States
Code, shall not apply to deposits of the Fund made
pursuant to section 207.
(f) LIMITATION OF FUND AND FEDERAL LIABIL-
ITY.—The liability of the Fund and of the United States
Government arising out of any investment in a community
development financial institution in accordance with this
title shall be limited to the amount of the investment and
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. A community devel-
opment financial institution that receives assistance pur-
suant to this title shall not be deemed to be an agency,
department, or instrumentality of the United States.
(g) PROHIBITION OF ISSUANCE OF SECURITIES.—
The Fund may not issue stock, bonds, debentures, notes,
or other securities.
SEC. 205. APPLICATIONS FOR ASSISTANCE.
(a) FORM AND PROCEDURES.—An application for as-
sistance under this title shall be submitted by an applicant
in such form and in accordance with such procedures as
the Board shall establish. The Board shall publish regula-
tions with respect to application requirements and proce-
dures not later than 210 days after enactment of this title.
(b) MINIMUM REQUIREMENTS.—The Board shall re-
quire that the application—
(1) demonstrate to the satisfaction of the Board
that the applicant is, or upon the receipt of a char-
ter will be, a community development financial insti-
tution as defined in section 203(a);
(2) demonstrate that the applicant will serve—
(A) a targeted population; or
(B) an area which is an investment area;
(3) in the case of an applicant that has pre-
viously received assistance under this title, dem-
onstrate that the applicant—
(A) has successfully carried out its respon-
sibilities under this title;
(B) has become or is about to become an
entity that will not be dependent upon assist-
ance from the Fund for continued viability; and
(C) will expand its operations into a new
investment area, offer new services, or will in-
crease the volume of its current business;
(4) in the case of a community development fi-
nancial institution with existing operations, dem-
onstrate a record of success of serving investment
areas or targeted populations;
(5) include a detailed and comprehensive strate-
gic plan for the organization that contains—
(A) a business plan of at least five years
that demonstrates the applicant is properly
managed and has the capacity to form and op-
erate a community development financial insti-
tution that is, or will become, an entity that will
not be dependent upon assistance from the
Fund for continued viability;
(B) a statement that the applicant has, or
will have, in its charter or other governing doc-
uments a primary commitment to community
development, or other evidence of a prior his-
tory and a continuing affirmation of a primary
commitment of community development;
(C) an analysis of the needs of the invest-
ment area or targeted populations and a strat-
egy for how the applicant will attempt to meet
those needs;
(D) a plan to coordinate use of assistance
from the Fund with existing Federal, govern-
ment-sponsored enterprise, and State and local
assistance programs, and private sector finan-
cial services;
(E) a statement that the proposed activi-
ties of the applicant are consistent with existing
economic, community and housing development
plans adopted by or applicable to the invest-
ment area;
(F) a description of how the applicant will
affiliate, network, or otherwise coordinate with
a full range of community organizations and fi-
nancial institutions which provide, or will pro-
vide, capital, credit, or secondary markets in
order to assure that banking, economic develop-
ment, investment, affordable housing, and other
related services will be available within the in-
vestment area or to targeted populations; and
(G) such other information as the Board
deems appropriate for inclusion in the strategic
plan;
(6) demonstrate that the applicant will carry on
its activities consistent with the purposes of this title
within the investment area or with respect to a tar-
geted population;
(7) include a detailed and specific statement of
applicant’s plans and likely sources of funds to
match the amount of assistance from the Fund with
funds from private sources in accordance with the
requirements of section 207(d); and
(8) include such other information as the Board
may require.
(c) PRE-APPLICATION OUTREACH PROGRAM.—The
Fund shall provide for an outreach program to identify
and provide information to potential applicants and to in-
crease the capacity of potential applicants to meet the ap-
plication and other requirements of this title.
SEC. 206. SELECTION OF INSTITUTIONS.
(a) SELECTION CRITERIA.—The Board shall, in its
discretion, select applications that meet the requirements
of section 205 and award assistance from the Fund in ac-
cordance with section 207. In selecting applications, the
Board shall consider applications based on, but not limited
to—
(1) the likelihood of success of the applicant in
forming and operating a community development fi-
nancial institution;
(2) the range and comprehensiveness of the
capital, credit, and development services to be pro-
vided by the applicant;
(3) the extent of the need, as measured by ob-
jective criteria of distress, within the investment