12 U.S.C. § 4703 — Establishment of national Fund for com-

Page 1727 TITLE 12—BANKS AND BANKING § 4703 group or community, including any Alaska Native village or regional or village corpora- tion, as defined in or established pursuant to the Alaska Native Claims Settlement Act [43 U.S.C. 1601 et seq.], which is recognized as eli- gible for the special programs and services provided by the United States to Indians be- cause of their status as Indians. (13) Insured community development financial institution The term ‘‘insured community development financial institution’’ means any community development financial institution that is an insured depository institution or an insured credit union. (14) Insured credit union The term ‘‘insured credit union’’ has the same meaning as in section 1752(7) of this title. (15) Insured depository institution The term ‘‘insured depository institution’’ has the same meaning as in section 1813 of this title. (16) Investment area The term ‘‘investment area’’ means a geo- graphic area (or areas) including an Indian reservation that— (A)(i) meets objective criteria of economic distress developed by the Fund, which may include the percentage of low-income fami- lies or the extent of poverty, the rate of un- employment or underemployment, rural population outmigration, lag in population growth, and extent of blight and disinvest- ment; and (ii) has significant unmet needs for loans or equity investments; or (B) encompasses or is located in an em- powerment zone or enterprise community designated under section 1391 of title 26. (17) Low-income The term ‘‘low-income’’ means having an in- come, adjusted for family size, of not more than— (A) for metropolitan areas, 80 percent of the area median income; and (B) for nonmetropolitan areas, the greater of— (i) 80 percent of the area median income; or (ii) 80 percent of the statewide non- metropolitan area median income. (18) State The term ‘‘State’’ has the same meaning as in section 1813 of this title. (19) Subsidiary The term ‘‘subsidiary’’ has the same mean- ing as in section 1813 of this title, except that a community development financial institu- tion that is a corporation shall not be consid- ered to be a subsidiary of any insured deposi- tory institution or depository institution holding company that controls less than 25 percent of any class of the voting shares of such corporation, and does not otherwise con- trol in any manner the election of a majority of the directors of the corporation. (20) Targeted population The term ‘‘targeted population’’ means indi- viduals, or an identifiable group of individuals, including an Indian tribe, who— (A) are low-income persons; or (B) otherwise lack adequate access to loans or equity investments. (21) Training program The term ‘‘training program’’ means the training program operated by the Fund under section 4708 of this title. (Pub. L. 103–325, title I, § 103, Sept. 23, 1994, 108 Stat. 2163.) Editorial Notes REFERENCES IN TEXT The Small Business Investment Act of 1958, referred to in par. (6), is Pub. L. 85–699, Aug. 21, 1958, 72 Stat. 689, which is classified principally to chapter 14B (§ 661 et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 661 of Title 15 and Tables. The Alaska Native Claims Settlement Act, referred to in pars. (11) and (12), is Pub. L. 92–203, Dec. 18, 1971, 85 Stat. 688, which is classified generally to chapter 33 (§ 1601 et seq.) of Title 43, Public Lands. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 43 and Tables. § 4703. Establishment of national Fund for com- munity development banking (a) Establishment (1) In general There is established a corporation to be known as the Community Development Finan- cial Institutions Fund that shall have the du- ties and responsibilities specified by this sub- chapter and subchapter II of this chapter. The Fund shall have succession until dissolved. The offices of the Fund shall be in Wash- ington, D.C. The Fund shall not be affiliated with or be within any other agency or depart- ment of the Federal Government. (2) Wholly owned Government corporation The Fund shall be a wholly owned Govern- ment corporation in the executive branch and shall be treated in all respects as an agency of the United States, except as otherwise pro- vided in this subchapter. (b) Management of Fund (1) Appointment of Administrator The management of the Fund shall be vested in an Administrator, who shall be appointed by the President. The Administrator shall not engage in any other business or employment during service as the Administrator. (2) Chief financial officer The Administrator shall appoint a chief fi- nancial officer, who shall have the authority and functions of an agency Chief Financial Of- ficer under section 902 of title 31. In the event of a vacancy in the position of the Adminis- trator or during the absence or disability of the Administrator, the chief financial officer shall perform the duties of the position of Ad- ministrator. (3) Other officers and employees The Administrator may appoint such other officers and employees of the Fund as the Ad- Page 1728 TITLE 12—BANKS AND BANKING § 4703 ministrator determines to be necessary or ap- propriate. (4) Expedited hiring During the 2-year period beginning on Sep- tember 23, 1994, the Administrator may— (A) appoint and terminate the individuals referred to in paragraphs (2) and (3) without regard to the civil service laws and regula- tions; and (B) fix the compensation of the individuals referred to in paragraph (3) without regard to the provisions of chapter 51 and sub- chapter III of chapter 53 of title 5 relating to classification of positions and General Schedule pay rates, except that the rate of pay for such individuals may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title. (c) General powers In carrying out the functions of the Fund, the Administrator— (1) shall have all necessary and proper au- thority to carry out this subchapter and sub- chapter II of this chapter; (2) shall have the power to adopt, alter, and use a corporate seal for the Fund, which shall be judicially noticed; (3) may adopt, amend, and repeal bylaws, rules, and regulations governing the manner in which business of the Fund may be con- ducted and such rules and regulations as may be necessary or appropriate to implement this subchapter and subchapter II of this chapter; (4) may enter into, perform, and enforce such agreements, contracts, and transactions as may be deemed necessary or appropriate to the conduct of activities authorized under this subchapter and subchapter II of this chapter; (5) may determine the character of and ne- cessity for expenditures of the Fund and the manner in which they shall be incurred, al- lowed, and paid; (6) may utilize or employ the services of per- sonnel of any agency or instrumentality of the United States with the consent of the agency or instrumentality concerned on a reimburs- able or nonreimbursable basis; and (7) may execute all instruments necessary or appropriate in the exercise of any of the func- tions of the Fund under this subchapter and subchapter II of this chapter and may delegate to the officers of the Fund such of the powers and responsibilities of the Administrator as the Administrator deems necessary or appro- priate for the administration of the Fund. (d) Advisory Board (1) Establishment There is established an advisory board to the Fund to be known as the Community Develop- ment Advisory Board, which shall be operated in accordance with the provisions of chapter 10 of title 5, except that section 1013 of title 5 does not apply to the Board. (2) Membership The Board shall consist of 15 members, in- cluding— (A) the Secretary of Agriculture or his or her designee; (B) the Secretary of Commerce or his or her designee; (C) the Secretary of Housing and Urban Development or his or her designee; (D) the Secretary of the Interior or his or her designee; (E) the Secretary of the Treasury or his or her designee; (F) the Administrator of the Small Busi- ness Administration or his or her designee; and (G) 9 private citizens, appointed by the President, who shall be selected, to the max- imum extent practicable, to provide for na- tional geographic representation and racial, ethnic, and gender diversity, including— (i) 2 individuals who are officers of exist- ing community development financial in- stitutions; (ii) 2 individuals who are officers of in- sured depository institutions; (iii) 2 individuals who are officers of na- tional consumer or public interest organi- zations; (iv) 2 individuals who have expertise in community development; and (v) 1 individual who has personal experi- ence and specialized expertise in the unique lending and community develop- ment issues confronted by Indian tribes on Indian reservations. (3) Chairperson The members of the Board specified in para- graph (2)(G) shall select, by majority vote, a chairperson of the Board, who shall serve for a term of 2 years. (4) Board function It shall be the function of the Board to ad- vise the Administrator on the policies of the Fund regarding activities under this sub- chapter. The Board shall not advise the Ad- ministrator on the granting or denial of any particular application. (5) Terms of private members (A) In general Each member of the Board appointed under paragraph (2)(G) shall serve for a term of 4 years. (B) Vacancies Any member appointed to fill a vacancy occurring prior to the expiration of the term for which the previous member was ap- pointed shall be appointed for the remainder of such term. Members may continue to serve following the expiration of their terms until a successor is appointed. (6) Meetings The Board shall meet at least annually and at such other times as requested by the Ad- ministrator or the chairperson. A majority of the members of the Board shall constitute a quorum. (7) Reimbursement for expenses The members of the Board may receive reim- bursement for travel, per diem, and other nec- essary expenses incurred in the performance of their duties, in accordance with chapter 10 of title 5. Page 1729 TITLE 12—BANKS AND BANKING § 4703 (8) Costs and expenses The Fund shall provide to the Board all nec- essary staff and facilities. (e) Omitted (f) Government Corporation Control Act exemp- tion Section 9107(b) of title 31, shall not apply to deposits of the Fund made pursuant to section 4707 of this title. (g) Limitation of Fund and Federal liability The liability of the Fund and the United States Government arising out of any invest- ment in a community development financial in- stitution in accordance with this subchapter shall be limited to the amount of the invest- ment. The Fund shall be exempt from any as- sessments and other liabilities that may be im- posed on controlling or principal shareholders by any Federal law or the law of any State, Ter- ritory, or the District of Columbia. Nothing in this subsection shall affect the application of any Federal tax law. (h) Prohibition on issuance of securities The Fund may not issue stock, bonds, deben- tures, notes, or other securities. (i) Omitted (j) Assisted institutions not United States instru- mentalities A community development financial institu- tion or other organization that receives assist- ance pursuant to this subchapter shall not be deemed to be an agency, department, or instru- mentality of the United States. (k) Transition period (1) In general During the transition period, the Secretary of the Treasury may— (A) assist in the establishment of the ad- ministrative functions of the Fund listed in paragraph (2); and (B) hire not more than 6 individuals to serve as employees of the Fund during the transition period. (2) Continued service Individuals hired in accordance with para- graph (1)(B) may continue to serve as employ- ees of the Fund after the transition period. (3) Administrative functions The administrative functions referred to in paragraph (1)(A) shall be limited to— (A) establishing accounting, information, and recordkeeping systems for the Fund; and (B) procuring office space, equipment, and supplies. (4) Expedited hiring During the transition period, the Secretary of the Treasury may— (A) appoint and terminate the individuals referred to in paragraph (1)(B) without re- gard to the civil service laws and regula- tions; and (B) fix the compensation of the individuals referred to in paragraph (1)(B) without re- gard to the provisions of chapter 51 and sub- chapter III of chapter 53 of title 5 relating to classification of positions and General Schedule pay rates, except that the rate of pay for such individuals may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title. (5) Certain employees During the transition period, employees of the Department of the Treasury may only comprise less than one-half of the total num- ber of individuals hired in accordance with paragraph (1)(B). (6) Transition expenses Amounts previously appropriated to the De- partment of the Treasury may be used to pay obligations and expenses of the Fund incurred under this section, and such amounts may be reimbursed by the Fund to the Department of the Treasury from amounts appropriated to the Fund for fiscal year 1995. (7) ‘‘Transition period’’ defined For purposes of this subsection, the term ‘‘transition period’’ means the period begin- ning on September 23, 1994, and ending on the date on which the Administrator is appointed. (Pub. L. 103–325, title I, § 104, Sept. 23, 1994, 108 Stat. 2166; Pub. L. 112–166, § 2(w), Aug. 10, 2012, 126 Stat. 1289; Pub. L. 117–286, § 4(a)(57), Dec. 27, 2022, 136 Stat. 4311.) Editorial Notes CODIFICATION Section is comprised of section 104 of Pub. L. 103–325. Subsecs. (e) and (i) of section 104 of Pub. L. 103–325 amended section 9101 of Title 31, Money and Finance, and section 5313 of Title 5, Government Organization and Employees, respectively. AMENDMENTS 2022—Subsec. (d)(1). Pub. L. 117–286, § 4(a)(57)(A), sub- stituted ‘‘chapter 10 of title 5, except that section 1013 of title 5’’ for ‘‘the Federal Advisory Committee Act, except that section 14 of that Act’’. Subsec. (d)(7). Pub. L. 117–286, § 4(a)(57)(B), substituted ‘‘chapter 10 of title 5.’’ for ‘‘the Federal Advisory Com- mittee Act.’’ 2012—Subsec. (b)(1). Pub. L. 112–166 struck out ‘‘, by and with the advice and consent of the Senate’’ before period at end of first sentence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2012 AMENDMENT Amendment by Pub. L. 112–166 effective 60 days after Aug. 10, 2012, and applicable to appointments made on and after that effective date, including any nomination pending in the Senate on that date, see section 6(a) of Pub. L. 112–166, set out as a note under section 113 of Title 6, Domestic Security. ADMINISTRATION OF FUND BY SECRETARY OF THE TREASURY Pub. L. 104–134, title I, § 101(e) [title III], Apr. 26, 1996, 110 Stat. 1321–257, 1321–294; renumbered title I, Pub. L. 104–140, § 1(a), May 2, 1996, 110 Stat. 1327, provided in part: ‘‘That notwithstanding any other provision of law, for purposes of administering the Community De- velopment Financial Institutions Fund, the Secretary of the Treasury shall have all powers and rights of the Administrator of the CDBFI Act [12 U.S.C. 4701 et seq.] Page 1730 TITLE 12—BANKS AND BANKING § 4703a 1 So in original. The period probably should be a semicolon. and the Fund shall be within the Department of the Treasury.’’ Similar provisions were contained in the following prior appropriations act: Pub. L. 104–19, title I, July 27, 1995, 109 Stat. 237. § 4703a. Capital investments for neighborhoods disproportionately impacted by the COVID–19 pandemic (a) Definitions In this section— (1) the term ‘‘bank holding company’’ has the meaning given the term in section 1841 of this title; (2) the term ‘‘eligible institution’’ means any low- and moderate-income community fi- nancial institution that is eligible to partici- pate in the Program; (3) the term ‘‘Emergency Capital Investment Fund’’ means the Emergency Capital Invest- ment Fund established under subsection (b); (4) the term ‘‘low- and moderate-income community financial institution’’ means any financial institution that is— (A)(i) a community development financial institution; or (ii) a minority depository institution; and (B)(i) an insured depository institution that is not controlled by a bank holding company or savings and loan holding com- pany that is also an eligible institution; (ii) a bank holding company; (iii) a savings and loan holding company; or (iv) a federally insured credit union; (5) the term ‘‘minority’’ means any Black American, Native American, Hispanic Amer- ican, Asian American, Native Alaskan, Native Hawaiian, or Pacific Islander; (6) the term ‘‘minority depository institu- tion’’ means an entity that is— (A) a minority depository institution, as defined in section 308 of the Financial Insti- tutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note); or (B) considered to be a minority depository institution by— (i) the appropriate Federal banking agency; or (ii) the National Credit Union Adminis- tration, in the case of an insured credit union; or (C) listed in the Federal Deposit Insurance Corporation’s Minority Depository Institu- tions List published for the Third Quarter 2020.1 (7) the term ‘‘Program’’ means the Emer- gency Capital Investment Program established under subsection (b); (8) the term ‘‘savings and loan holding com- pany’’ has the meaning given the term under section 1467a(a) of this title; and (9) the ‘‘Secretary’’ means the Secretary of the Treasury. (b) Establishment (1) Fund established There is established in the Treasury of the United States a fund to be known as the ‘‘Emergency Capital Investment Fund’’, which shall be administered by the Secretary. (2) Program authorized The Secretary is authorized to establish an emergency program known as the ‘‘Emergency Capital Investment Program’’ to support the efforts of low- and moderate-income commu- nity financial institutions to, among other things, provide loans, grants, and forbearance for small businesses, minority-owned busi- nesses, and consumers, especially in low-in- come and underserved communities, including persistent poverty counties, that may be dis- proportionately impacted by the economic ef- fects of the COVID–19 pandemic, by providing direct and indirect capital investments in low- and moderate-income community financial in- stitutions consistent with this section. (c) Purchases (1) In general Subject to paragraph (2), the Emergency Capital Investment Fund shall be available to the Secretary, without further appropriation or fiscal year limitation, for the costs of pur- chases (including commitments to purchase), and modifications of such purchases, of pre- ferred stock and other financial instruments from eligible institutions on such terms and conditions as are determined by the Secretary in accordance with this section. (2) Purchase limit The aggregate amount of purchases pursuant to paragraph (1) may not exceed $9,000,000,000. (d) Application (1) Acceptance The Secretary shall begin accepting applica- tions for capital investments under the Pro- gram not later than the end of the 30-day pe- riod beginning on December 27, 2020. (2) Consultation with regulators For each eligible institution that applies to receive a capital investment under the Pro- gram, the Secretary shall consult with the ap- propriate Federal banking agency or the Na- tional Credit Union Administration, as appli- cable, to determine whether the eligible insti- tution may receive such capital investment. (3) Eligibility (A) In general Only low- and moderate-income commu- nity financial institutions shall be eligible to participate in the Program. (B) Additional criteria The Secretary may establish additional criteria for participation by an institution in the Program, as the Secretary may deter- mine appropriate in furtherance of the goals of the Program. (4) Requirement to provide an emergency in- vestment lending plan for communities that may be disproportionately impacted by the economic effects of the COVID–19 pandemic (A) In general At the time that an applicant submits an application to the Secretary for a capital in-