12 U.S.C. § 5614 — Exercise of Federal Reserve authority

Page 2009 TITLE 12—BANKS AND BANKING § 5614 (A) an exceptional and broad reduction in the general ability of financial market par- ticipants— (i) to sell financial assets without an un- usual and significant discount; or (ii) to borrow using financial assets as collateral without an unusual and signifi- cant increase in margin; or (B) an unusual and significant reduction in the ability of financial market participants to obtain unsecured credit. (4) Solvent The term ‘‘solvent’’ means that the value of the assets of an entity exceed its obligations to creditors. (h) Approval of guarantee program during the COVID–19 crisis (1) In general For purposes of the congressional joint reso- lution of approval provided for in subsections (c)(1) and (2) and (d), notwithstanding any other provision of this section, the Federal De- posit Insurance Corporation is approved upon enactment of this Act to establish a program provided for in subsection (a), provided that any such program and any such guarantee shall terminate not later than December 31, 2020. (2) Maximum amount Any debt guarantee program authorized by this subsection shall include a maximum amount of outstanding debt that is guaran- teed. (Pub. L. 111–203, title XI, § 1105, July 21, 2010, 124 Stat. 2121; Pub. L. 116–136, div. A, title IV, § 4008(a), Mar. 27, 2020, 134 Stat. 477.) Editorial Notes REFERENCES IN TEXT Section 1105 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, referred to in subsec. (d)(4)(C), (D), is section 1105 of Pub. L. 111–203, which is classified to this section. Section 208(n)(5)(E), referred to in subsec. (e)(5), prob- ably means section 210(n)(5)(E) of Pub. L. 111–203, which is classified to section 5390(n)(5)(E) of this title, because section 208 does not contain a subsec. (n) and section 210(n)(5)(E) relates to treatment of certain purchases and sales of obligations by the Secretary as public debt. Enactment of this Act, referred to in subsec. (h)(1), probably means the date of enactment of subtitle A of title IV of div. A of Pub. L. 116–136, known as the Coronavirus Economic Stabilization Act of 2020, which was approved Mar. 27, 2020. For complete classification of this Act to the Code, see section 4001 of div. A of title IV of Pub. L. 116–136, set out as a Short Title note under section 9001 of this title, and Tables. AMENDMENTS 2020—Subsec. (f). Pub. L. 116–136, § 4008(a)(1), inserted ‘‘in noninterest-bearing transaction accounts’’ after ‘‘institutions’’ and substituted ‘‘may’’ for ‘‘shall not’’. Subsec. (h). Pub. L. 116–136, § 4008(a)(2), added subsec. (h). § 5613. Additional related matters (a) Suspension of parallel Federal Deposit Insur- ance Act authority Effective upon July 21, 2010, the Corporation may not exercise its authority under section 1823(c)(4)(G)(i) of this title to establish any wide- ly available debt guarantee program for which section 5612 of this title would provide author- ity. (b) Omitted (c) Effect of default on an FDIC guarantee If an insured depository institution or deposi- tory institution holding company (as those terms are defined in section 1813 of this title) participating in a program under section 5612 of this title, or any participant in a debt guarantee program established pursuant to section 1823(c)(4)(G)(i) of this title defaults on any obli- gation guaranteed by the Corporation after July 21, 2010, the Corporation shall— (1) appoint itself as receiver for the insured depository institution that defaults; and (2) with respect to any other participating company that is not an insured depository in- stitution that defaults— (A) require— (i) consideration of whether a determina- tion shall be made, as provided in section 5383 of this title to resolve the company under section 5382 of this title; and (ii) the company to file a petition for bankruptcy under section 301 of title 11 if the Corporation is not appointed receiver pursuant to section 5382 of this title within 30 days of the date of default; or (B) file a petition for involuntary bank- ruptcy on behalf of the company under sec- tion 303 of title 11. (Pub. L. 111–203, title XI, § 1106, July 21, 2010, 124 Stat. 2125.) Editorial Notes CODIFICATION Section is comprised of section 1106 of Pub. L. 111–203. Subsec. (b) of section 1106 of Pub. L. 111–203 amended section 1823 of this title. § 5614. Exercise of Federal Reserve authority (1) No decisions by Federal reserve bank presi- dents No provision of subchapter I relating to the authority of the Board of Governors shall be construed as conferring any decision-making au- thority on presidents of Federal reserve banks. (2) Voting decisions by Board The Board of Governors shall not delegate the authority to make any voting decision that the Board of Governors is authorized or required to make under subchapter I of this chapter in con- travention of section 248(k) of this title. (Pub. L. 111–203, title XI, § 1108(d), July 21, 2010, 124 Stat. 2127.) Editorial Notes REFERENCES IN TEXT Subchapter I, referred to in text, was in the original ‘‘title I’’, meaning title I of Pub. L. 111–203, July 21, 2010, 124 Stat. 1391, known as the Financial Stability Act of 2010, which is classified principally to subchapter I (§ 5311 et seq.) of this chapter. For complete classifica- tion of title I to the Code, see Short Title note set out under section 5301 of this title and Tables. 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-