tion of the office, branch, or institution, or be-
cause of the elimination of such positions or
any decrease in compensation paid for such
positions.
(e) RESERVE REQUIREMENTS.—
(1) MAINTENANCE OF RESERVE.—During the
applicable assistance agreement term, a community
development lender that receives assistance under
section 1514 (or established by an eligible entity
that receives such assistance) shall maintain, at all
times, a reserve against losses on loans and any
other losses in the amount determined under para-
graph (2).
(2) ESTABLISHMENT OF REQUIREMENTS.—The
Secretary shall, by regulation, establish reserve
amounts to be maintained by community develop-
ment lenders taking into consideration the purposes
of such lenders, the nature of lending engaged in by
such lenders, the size and amount of business of
such lenders, the need for such lending in the com-
munities and low-income neighborhoods served by
such lenders, and any other factors the Secretary
considers appropriate.
(3) REPLENISHMENT.—If at any time during
the applicable assistance agreement term, the
amount reserved by a community development lender
under this subsection is less than the amount re-
quired to be reserved under the regulations issued
pursuant to paragraph (2), the Secretary may take
such actions as the Secretary may, by regulation,
provide that are consistent with the purposes of this
subtitle, 
including 
withholding 
any 
assistance
amounts to be provided to the lender under the
agreement under section 1517 but not yet disbursed
and requiring the lender to replenish the reserve by
regular contributions in the amounts determined by
the Secretary.
(f) STAFF.—During the applicable assistance agree-
ment term, a community development lender that receives
assistance under section 1514 (or established by an eligi-
ble entity that receives assistance under such section) shall
maintain personnel qualified and capable of conducting
the activities described under section 1513(b) and the
other activities of the lender relating to community devel-
opment, as the Secretary may require.
SEC. 1516. APPLICATION AND APPROVAL FOR ASSISTANCE.
(a) REQUIREMENT.—The Secretary may provide as-
sistance under section 1514 only to community develop-
ment lenders and eligible entities establishing community
development lenders that have submitted applications
under this section to the Secretary that have been ap-
proved under subsection (d).
(b) TIME AND MANNER.—The Secretary shall estab-
lish requirements regarding the submission of applications
under this section, which shall include requirements for
the time and manner of submission.
(c) CONTENTS.—An application under this section
shall contain the following information:
(1) COMMUNITY
DEVELOPMENT
LENDER.—A
description of—
(A) the existing community development fi-
nancial institution to be assisted; or
(B) in the case of an eligible entity submit-
ting the application for assistance, the commu-
nity development lender to be established by the
eligible entity, the existing relationship between
the eligible entity and the community develop-
ment lender to be established, and any continu-
ing relationship that will exist between the
eligible entity and the community development
lender.
(2) LOW-INCOME
NEIGHBORHOOD
SERVED.—
Identification and a description of the low-income
neighborhood in which the community development
lender is, or is to be, located and conduct its prin-