12 U.S.C. § 4713 — Incentives for depository institution par-

Page 1740 TITLE 12—BANKS AND BANKING § 4713 (b) Selection The selection of organizations to receive as- sistance under this section shall be at the dis- cretion of the Fund and in accordance with cri- teria established by the Fund. In establishing such criteria, the Fund shall take into account the criteria contained in sections 4704(b) and 4706 of this title, as appropriate. (c) Amount of assistance The Fund may provide a total of not more than $5,000,000 of assistance to an organization or its subsidiaries or affiliates under this section during any 3-year period. Assistance may be pro- vided in a lump sum or over a period of time, as determined by the Fund. (d) Audit and report requirements Organizations that receive assistance from the Fund in accordance with this section shall— (1) submit to the Fund, not less than once in every 18-month period, financial statements audited by an independent certified public ac- countant, as part of the report required by paragraph (2); (2) submit an annual report on its activities; and (3) keep such records as may be necessary to disclose the manner in which any assistance under this section is used. (e) Limitations on liability (1) Liability of Fund The liability of the Fund and the United States Government arising out of the provi- sion of assistance to any organization in ac- cordance with this section shall be limited to the amount of such assistance. The Fund shall be exempt from any assessments and any other liabilities that may be imposed on con- trolling or principal shareholders by any Fed- eral law or the law of any State, or territory. Nothing in this paragraph shall affect the ap- plication of Federal tax law. (2) Liability of Government This section does not oblige the Federal Government, either directly or indirectly, to provide any funds to any organization assisted pursuant to this section, or to honor, reim- burse, or otherwise guarantee any obligation or liability of such an organization. This sec- tion shall not be construed to imply that any such organization or any obligations or securi- ties of any such organization are backed by the full faith and credit of the United States. (f) Use of proceeds Any proceeds from the sale of loans by an or- ganization assisted under this section shall be used by the seller for community development purposes. (Pub. L. 103–325, title I, § 113, Sept. 23, 1994, 108 Stat. 2178.) Editorial Notes REFERENCES IN TEXT The Housing and Community Development Act of 1974, referred to in subsec. (a)(3), is Pub. L. 93–383, Aug. 22, 1974, 88 Stat. 633. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 5301 of Title 42, The Public Health and Welfare, and Tables. § 4713. Incentives for depository institution par- ticipation (a) Function of Administrator (1) In general Of any funds appropriated pursuant to the authorization in section 4718(a) of this title, the funds made available for use in carrying out this section in accordance with section 4718(a)(4) of this title shall be administered by the Administrator of the Fund, in consulta- tion with— (A) the Federal banking agencies (as de- fined in section 3 of the Federal Deposit In- surance Act [12 U.S.C. 1813]) and the Na- tional Credit Union Administration; (B) the individuals named pursuant to clauses (ii) and (iv) of section 4703(d)(2)(G) of this title; and (C) any other representatives of insured depository institutions or other persons as the Administrator may determine to be ap- propriate. (2) Applicability of Bank Enterprise Act of 1991 Subject to subsection (b) and the consulta- tion requirement of paragraph (1)— (A) section 233 of the Bank Enterprise Act of 1991 [12 U.S.C. 1834a] shall be applicable to the Administrator, for purposes of this sec- tion, in the same manner and to the same extent that such section is applicable to the Community Enterprise Assessment Credit Board; (B) the Administrator shall, for purposes of carrying out this section and section 233 of the Bank Enterprise Act of 1991 [12 U.S.C. 1834a]— (i) have all powers and rights of the Community Enterprise Assessment Credit Board under section 233 of the Bank Enter- prise Act of 1991 to administer and enforce any provision of such section 233 which is applicable to the Administrator under this section; and (ii) shall be subject to the same duties and restrictions imposed on the Commu- nity Enterprise Assessment Credit Board; and (C) the Administrator shall— (i) have all powers and rights of an ap- propriate Federal banking agency under section 233(b)(2) of the Bank Enterprise Act of 1991 [12 U.S.C. 1834a(b)(2)] to approve or disapprove the designation of qualified distressed communities for purposes of this section and provide information and assistance with respect to any such des- ignation; and (ii) shall be subject to the same duties imposed on the appropriate Federal bank- ing agencies under such section 233(b)(2). (3) Awards The Administrator shall determine the amount of assessment credits, and shall make awards of those credits. (4) Regulations and guidelines The Administrator may prescribe such regu- lations and issue such guidelines as the Ad- Page 1741 TITLE 12—BANKS AND BANKING § 4713a ministrator determines to be appropriate to carry out this section. (5) Exceptions to applicability Notwithstanding paragraphs (1) through (4) of this subsection, subsections (a)(1) and (e)(2) of section 233 of the Bank Enterprise Act of 1991 [12 U.S.C. 1834a(a)(1), (e)(2)], and any other provision of the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.] relating to the Bank En- terprise Act of 1991, do not apply to the Ad- ministrator for purposes of this subchapter. (b) Provisions relating to administration of this section (1) New lifeline accounts In applying section 233 of the Bank Enter- prise Act of 1991 [12 U.S.C. 1834a] for purposes of this section, the Administrator shall treat the provision of new lifeline accounts by an in- sured depository institution as an activity which is qualified to be taken into account under section 233(a)(2)(A) of such Act. (2) Determination of assessment credit For the purpose of this subchapter, section 233(a)(3) of the Bank Enterprise Act of 1991 (12 U.S.C. 1834a(a)(3)) shall be applied by sub- stituting the following text: ‘‘(3) Amount of assessment credit ‘‘The amount of an assessment credit which may be awarded to an insured depository insti- tution to carry out the qualified activities of the institution or of the subsidiaries of the in- stitution pursuant to this section for any semiannual period shall be equal to the sum of— ‘‘(A) with respect to qualifying activities described in paragraph (2)(A), the amount which is equal to— ‘‘(i) 5 percent of the sum of the amounts determined under such subparagraph, in the case of an institution which is not a community development financial institu- tion; or ‘‘(ii) 15 percent of the sum of the amounts determined under such subpara- graph, in the case of an institution which is a community development financial in- stitution; and ‘‘(B) with respect to qualifying activities described in paragraph (2)(C), 15 percent of the amounts determined under such subpara- graph.’’ (3) Adjustment of percentage Section 233(a)(5) of the Bank Enterprise Act of 1991 [12 U.S.C. 1834a(a)(5)] shall be applied for purposes of this section by— (A) substituting ‘‘institutions which are community development financial institu- tions’’ for ‘‘institutions which meet the community development organization re- quirements under section 234 [12 U.S.C. 1834b]’’; and (B) substituting ‘‘institutions which are not community development financial insti- tutions’’ for ‘‘institutions which do not meet such requirements’’. (4) Designation of QDC Section 233(b)(2) of the Bank Enterprise Act of 1991 [12 U.S.C. 1834a(b)(2)] shall be applied for purposes of this section without regard to subparagraph (A)(ii) of such section 233(b)(2). (5) Operation on annual basis The Administrator may, in the Administra- tor’s discretion, apply section 233 of the Bank Enterprise Act of 1991 for purposes of this sec- tion by providing community enterprise as- sessment credits with respect to annual peri- ods rather than semiannual periods. (6) Outreach The Administrator shall ensure that infor- mation about the Bank Enterprise Act of 1991 under this section is widely disseminated to all interested parties. (7) Qualified activities For the purpose of this subchapter, section 233(a)(2)(A) of the Bank Enterprise Act of 1991 shall be applied by inserting ‘‘of the increase’’ after ‘‘the amount’’. (Pub. L. 103–325, title I, § 114, Sept. 23, 1994, 108 Stat. 2179.) Editorial Notes REFERENCES IN TEXT The Bank Enterprise Act of 1991, referred to in sub- secs. (a)(2), (5) and (b)(6), is subtitle C (§§ 231–234) of title II of Pub. L. 102–242, Dec. 19, 1991, 105 Stat. 2308–2315, which enacted sections 1834 to 1834b of this title, amended section 1817 of this title, and enacted provi- sions set out as a note under section 1811 of this title. For complete classification of this Act to the Code, see Short Title of 1991 Amendment note set out under sec- tion 1811 of this title and Tables. The Federal Deposit Insurance Act, referred to in subsec. (a)(5), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 1811 of this title and Tables. CODIFICATION Section is comprised of section 114 of Pub. L. 103–325. Subsec. (c) of section 114 of Pub. L. 103–325 amended section 1834a of this title. § 4713a. Guarantees for bonds and notes issued for community or economic development purposes (a) Definitions In this section, the following definitions shall apply: (1) Eligible community development financial institution The term ‘‘eligible community development financial institution’’ means a community de- velopment financial institution (as described in section 1805.201 of title 12, Code of Federal Regulations, or any successor thereto) cer- tified by the Secretary that has applied to a qualified issuer for, or been granted by a quali- fied issuer, a loan under the Program. (2) Eligible community or economic develop- ment purpose The term ‘‘eligible community or economic development purpose’’— (A) means any purpose described in section 4707(b) of this title; and (B) includes the provision of community or economic development in low-income or un- derserved rural areas.