§ 1834b. — Community development organizations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1834b]
TITLE 12--BANKS AND BANKING
CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 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.
(Pub. L. 102-242, title II, Sec. 234, Dec. 19, 1991, 105 Stat. 2315.)
References in Text
This subtitle, referred to in subsecs. (a) and (d), is subtitle C
(Secs. 231-234) of title II of Pub. L. 102-242, Dec. 19, 1991, 105 Stat.
2308, known as the Bank Enterprise Act of 1991, which enacted this
section and sections 1834 and 1834a of this title, amended section 1817
of this title, and enacted provisions set out as a note under section
1811 of this title. For complete classification of subtitle C to the
Code, see section 231 of Pub. L. 102-242, set out as a Short Title of
1991 Amendment note under section 1811 of this title and Tables.
Codification
Section was enacted as part of the Bank Enterprise Act of 1991, and
also as part of the Foreign Bank Supervision Enhancement Act of 1991 and
as part of the Federal Deposit Insurance Corporation Improvement Act of
1991, and not as part of the Federal Deposit Insurance Act which
comprises this chapter.
Section Referred to in Other Sections
This section is referred to in sections 1834a, 4713 of this title.