12 U.S.C. § 5621 — Purpose

Page 2010 TITLE 12—BANKS AND BANKING § 5621 SUBCHAPTER VII—IMPROVING ACCESS TO MAINSTREAM FINANCIAL INSTITUTIONS § 5621. Purpose The purpose of this subchapter is to encourage initiatives for financial products and services that are appropriate and accessible for millions of Americans who are not fully incorporated into the financial mainstream. (Pub. L. 111–203, title XII, § 1202, July 21, 2010, 124 Stat. 2129.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this title’’, meaning title XII of Pub. L. 111–203, July 21, 2010, 124 Stat. 2129, known as the Improving Ac- cess to Mainstream Financial Institutions Act of 2010, which is classified principally to this subchapter. For complete classification of title XII to the Code, see Short Title note set out under section 5301 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Subchapter effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title. SHORT TITLE This subchapter known as the ‘‘Improving Access to Mainstream Financial Institutions Act of 2010’’, see Short Title note set out under section 5301 of this title. § 5622. Definitions In this subchapter, the following definitions shall apply: (1) Account The term ‘‘account’’ means an agreement between an individual and an eligible entity under which the individual obtains from or through the entity 1 or more banking products and services, and includes a deposit account, a savings account (including a money market savings account), an account for a closed-end loan, and other products or services, as the Secretary deems appropriate. (2) Community development financial institu- tion The term ‘‘community development finan- cial institution’’ has the same meaning as in section 4702(5) of this title. (3) Eligible entity The term ‘‘eligible entity’’ means— (A) an organization described in section 501(c)(3) of title 26, and exempt from tax under section 501(a) of such title; (B) a federally insured depository institu- tion; (C) a community development financial in- stitution; (D) a State, local, or tribal government en- tity; or (E) a partnership or other joint venture comprised of 1 or more of the entities de- scribed in subparagraphs (A) through (D), in accordance with regulations prescribed by the Secretary under this subchapter. (4) Federally insured depository institution The term ‘‘federally insured depository in- stitution’’ means any insured depository insti- tution (as that term is defined in section 1813 of this title) and any insured credit union (as that term is defined in section 1752 of this title). (Pub. L. 111–203, title XII, § 1203, July 21, 2010, 124 Stat. 2129.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this title’’, meaning title XII of Pub. L. 111–203, July 21, 2010, 124 Stat. 2129, known as the Improving Ac- cess to Mainstream Financial Institutions Act of 2010, which is classified principally to this subchapter. For complete classification of title XII to the Code, see Short Title note set out under section 5301 of this title and Tables. § 5623. Expanded access to mainstream financial institutions (a) In general The Secretary is authorized to establish a multiyear program of grants, cooperative agree- ments, financial agency agreements, and similar contracts or undertakings to promote initia- tives designed— (1) to enable low- and moderate-income indi- viduals to establish one or more accounts in a federally insured depository institution that are appropriate to meet the financial needs of such individuals; and (2) to improve access to the provision of ac- counts, on reasonable terms, for low- and mod- erate-income individuals. (b) Program eligibility and activities (1) In general The Secretary shall restrict participation in any program established under subsection (a) to an eligible entity. Subject to regulations prescribed by the Secretary under this sub- chapter, 1 or more eligible entities may par- ticipate in 1 or several programs established under subsection (a). (2) Account activities Subject to regulations prescribed by the Sec- retary, an eligible entity may, in participating in a program established under subsection (a), offer or provide to low- and moderate-income individuals products and services relating to accounts, including— (A) small-dollar value loans; and (B) financial education and counseling re- lating to conducting transactions in and managing accounts. (Pub. L. 111–203, title XII, § 1204, July 21, 2010, 124 Stat. 2130.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in subsec. (b)(1), was in the original ‘‘this title’’, meaning title XII of Pub. L. 111–203, July 21, 2010, 124 Stat. 2129, known as the Im- proving Access to Mainstream Financial Institutions Act of 2010, which is classified principally to this sub-