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TITLE I—COMMUNITY
DEVELOPMENT BANKS
SEC. 101. ESTABLISHMENT OF A COMMUNITY DEVELOP-
MENT BANKERS’ BANK.
(a) IN GENERAL.—The Comptroller of the Currency
is hereby authorized to issue a certificate of authority to
commence the business of banking to a national banking
association that is owned exclusively (except to the extent
directors’ qualifying shares are required by law) by one
or more insured depository institutions and will be en-
gaged primarily in community development activities.
(b) REQUIRED NAME.—A national banking associa-
tion chartered pursuant to subsection (a) shall be known
as a ‘‘community development bank’’, and shall use the
term ‘‘community development bank’’ and the name of the
community in which it is located and will serve, in its title.
(c) REGULATION.—A community development bank
chartered pursuant to subsection (a) shall be subject to
such rules and orders as the Comptroller deems appro-
priate, and, except as otherwise specifically provided in
this title or in such rules and orders, shall be vested with
and subject to the same rights, duties and limitations that
apply to other national banking associations, including the
right to accept deposits.
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(d) BOARD OF DIRECTORS.—At least 25 percent of
members of the community development bank’s board of
directors shall be individuals residing in and representing
the interests of the community that the bank will serve.
SEC. 102. AUTHORITY TO INVEST IN A COMMUNITY DEVEL-
OPMENT BANK.
An insured depository institution may invest in the
shares of one or more community development banks.
Such investment may not exceed, in the aggregate, an
amount in excess of 5 percent of the depository institu-
tion’s tier one or core capital or, in the case of a particular
institution, such lesser amount as the appropriate Federal
banking agency determines to be necessary in order to
protect the safety and soundness of the institution.
SEC. 103. EXPEDITED PROCEDURES.
Within six months after the date of enactment of this
Act, the Comptroller of the Currency shall develop and
publish in the Federal Register expedited procedures for
the consideration of applications for a certificate to com-
mence the business of banking for a community develop-
ment bank. The Federal Deposit Insurance Corporation
shall develop expedited procedures for consideration of an
application by a community development bank for deposit
insurance. Final decisions shall be made by the Comptrol-
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ler and the Federal Deposit Insurance Corporation within
nine months after the receipt of completed applications.
SEC. 104. COMMUNITY DEVELOPMENT BANK ACTIVITIES.
(a) PRIMARY PURPOSE.—A community development
bank may only make loans and other investments designed
to provide a reasonable economic return to the bank and
its shareholders, consistent with its primary purpose of
providing credit, capital, and related services to targeted
persons and targeted geographic areas within its commu-
nity.
(b) LOAN AND INVESTMENT ACTIVITIES.—In order
to accomplish the purposes of this Act, a community devel-
opment bank may engage in activities consistent with this
Act, including the making or providing of the following:
(1) Residential mortgage loans.
(2) Residential construction loans.
(3) Small business commercial loans.
(4) Home improvement and rehabilitation loans.
(5) Neighborhood commercial revitalization
loans.
(6) Small farm loans.
(7) Industrial development loans.
(8) Equity investments in low- and moderate-in-
come real estate development and rehabilitation
projects.
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(9) Equity investments in community develop-
ment corporations and projects.
(10) Equity investments in small business de-
velopment corporations.
(11) Marketing and management assistance.
(12) Business planning and counseling services.
(13) Financial and technical services.
(14) Vocational training.
(15) Deposit funds in credit unions serving pre-
dominately low-income members as defined by the
National Credit Union Administration Board.
(c) COORDINATION.—A community development
bank shall coordinate its activities with activities and pro-
grams of the Department of Housing and Urban Develop-
ment, the Department of Veterans Affairs, the Depart-
ment of Commerce, the Small Business Administration,
and other agencies with respect to the development and
financing of community development organizations and
projects and small businesses.
(d) COMPETITION WITH EXISTING INSTITUTIONS.—
A community development bank shall target its activities
to customers do adequately served by existing depository
institutions.
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SEC. 105. OTHER COMMUNITY DEVELOPMENT BANKS.
Any insured depository institution may apply to the
appropriate Federal banking agency to be certified as a
‘‘community development bank’’. The agency shall issue
such certification if it finds that such bank is primarily
engaged in community development activities, and other-
wise complies with the provisions of this Act, other than
subsections (a), (b) and (c) of section 101, and that such
certification will further the purposes of this title.
SEC. 106. COMMUNITY REINVESTMENT ACT EVALUATION.
(a) EXAMINATION.—The appropriate Federal bank-
ing agency shall conduct an annual onsite examination
and evaluation of every community development bank in
order to determine compliance with this Act and to assess
the bank’s record of meeting the credit needs of its com-
munity, as described in section 804 of the Community Re-
investment Act of 1977.
(b) HEARING REQUIRED.—Prior to issuing a final
Community Reinvestment Act evaluation and rating, the
appropriate Federal banking agency shall—
(1) publish in two or more newspapers of gen-
eral circulation a statement that an informal hearing
on the bank’s success in meeting the credit needs of
its community is to be held; and
(2) directly notify known representatives of
consumer and community groups located within the
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bank’s community that an informal hearing is to be
held.
(c) NOTICE.—The publication and notice required
under subsection (b) shall state the date and place for the
hearing, which must be at least thirty days following the
date of the publication or mailing of the notice, and shall
invite interested persons and organizations to provide oral
and written testimony concerning the performance of the
community development bank.
(d) CONSIDERATION
OF TESTIMONY.—The appro-
priate Federal banking agency shall consider and take into
account the testimony and statements provided by commu-
nity representatives in evaluating the performance of a
community development bank under this section.
(e) FINAL EVALUATION.—Following the hearing, the
appropriate Federal banking agency shall provide a final
Community Reinvestment Act of 1977 evaluation and rat-
ing, including a written explanation for any findings and
conclusions.
(f) RE-EVALUATION.—A community development
bank that receives a final rating that is less than a satis-
factory rating shall be reevaluated within ninety days by
the appropriate Federal banking agency in order to deter-
mine whether it has made the necessary changes in poli-
cies or practices to warrant a satisfactory rating.