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U.S. Code as of:
01/19/04
Section 1834b. Community development organizations
(a) Community development organizations described
For purposes of this subtitle, any insured depository
institution, or a qualified portion thereof, shall be treated as
meeting the community development organization requirements of this
section if -
(1) the institution -
(A) is a community development bank, or controls any
community development bank, which meets the requirements of
subsection (b) of this section;
(B) controls any community development corporation, or
maintains any community development unit within the
institution, which meets the requirements of subsection (c) of
this section;
(C) invests in accounts in any community development credit
union designated as a low-income credit union, subject to
restrictions established for such credit unions by the National
Credit Union Administration Board; or
(D) invests in a community development organization jointly
controlled by two or more institutions;
(2) except in the case of an institution which is a community
development bank, the amount of the capital invested, in the form
of debt or equity, by the institution in the community
development organization referred to in paragraph (1) (or, in the
case of any community development unit, the amount which the
institution irrevocably makes available to such unit for the
purposes described in paragraph (3)) is not less than the greater
of -
(A) 1/2 of 1 percent of the capital, as defined by
generally accepted accounting principles, of the institution;
or
(B) the sum of the amounts invested in such community
development organization; and
(3) the community development organization provides loans for
residential mortgages, home improvement, and community
development and other financial services, other than financing
for the purchase of automobiles or extension of credit under any
open-end credit plan (as defined in section 1602(i) of title 15),
to low- and moderate-income persons, nonprofit organizations, and
small businesses located in qualified distressed communities in a
manner consistent with the intent of this subtitle.
(b) Community development bank requirements
A community development bank meets the requirements of this
subsection if -
(1) the community development bank has a 15-member advisory
board designated as the "Community Investment Board" and
consisting entirely of community leaders who -
(A) shall be appointed initially by the board of directors of
the community development bank and thereafter by the Community
Investment Board from nominations received from the community;
and
(B) are appointed for a single term of 2 years, except that,
of the initial members appointed to the Community Investment
Board, 1/3 shall be appointed for a term of 8 months, 1/3
shall be appointed for a term of 16 months, and 1/3 shall be
appointed for a term of 24 months, as designated by the board
of directors of the community development bank at the time of
the appointment;
(2) 1/3 of the members of the community development bank's
board of directors are appointed from among individuals nominated
by the Community Investment Board; and
(3) the bylaws of the community development bank require that
the board of directors of the bank meet with the Community
Investment Board at least once every 3 months.
(c) Community development corporation requirements
Any community development corporation, or community development
unit within any insured depository institution meets the
requirements of this subsection if the corporation or unit provides
the same or greater, as determined by the appropriate Federal
banking agency, community participation in the activities of such
corporation or unit as would be provided by a Community Investment
Board under subsection (b) of this section if such corporation or
unit were a community development bank.
(d) Adequate dispersal requirement
The appropriate Federal banking agency may approve the
establishment of a community development organization under this
subtitle only upon finding that the distressed community is not
adequately served by an existing community development
organization.
(e) Definitions
For purposes of this section -
(1) Community development bank
The term "community development bank" means any depository
institution (as defined in section 1813(c)(1) of this title).
(2) Community development organization
The term "community development organization" means any
community development bank, community development corporation,
community development unit within any insured depository
institution, or community development credit union.
(3) Low- and moderate-income persons
The term "low- and moderate-income persons" has the meaning
given such term in section 5302(a)(20) of title 42.
(4) Nonprofit organization; small business
The terms "nonprofit organization" and "small business" have
the meanings given to such terms by regulations which the
appropriate Federal banking agency shall prescribe for purposes
of this section.
(5) Qualified distressed community
The term "qualified distressed community" has the meaning given
to such term in section 1834a(b) of this title.
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