12 U.S.C. § 4708 — Training

Page 1738 TITLE 12—BANKS AND BANKING § 4708 (A) ensure, to the maximum extent prac- ticable, that each community development financial institution (other than an insured community development financial institu- tion or depository institution holding com- pany) assisted under this subchapter is fi- nancially and managerially sound and main- tains appropriate internal controls; (B) require such institution to submit, not less than once during each 18-month period, a statement of financial condition audited by an independent certified public account- ant as part of the report required by section 4714(e)(1) of this title; and (C) require that all assistance granted under this section is used by the community development financial institution or com- munity development partnership in a man- ner consistent with the purposes of this sub- chapter. (2) Assistance agreement (A) In general Before providing any assistance under this subchapter, the Fund and each community development financial institution to be as- sisted shall enter into an agreement that re- quires the institution to comply with per- formance goals and abide by other terms and conditions pertinent to assistance received under this subchapter. (B) Performance goals Performance goals shall be negotiated be- tween the Fund and each community devel- opment financial institution receiving as- sistance based upon the strategic plan sub- mitted pursuant to section 4704(b)(2) of this title. Such goals may be modified with the consent of the parties, or as provided in sub- paragraph (C). Performance goals for insured community development financial institu- tions shall be determined in consultation with the appropriate Federal banking agen- cy. (C) Sanctions The agreement shall provide that, in the event of fraud, mismanagement, noncompli- ance with this subchapter, or noncompliance with the terms of the agreement, the Fund, in its discretion, may— (i) require changes to the performance goals imposed pursuant to subparagraph (B); (ii) require changes to the strategic plan submitted pursuant to section 4704(b)(2) of this title; (iii) revoke approval of the application; (iv) reduce or terminate assistance; (v) require repayment of assistance; (vi) bar an applicant from reapplying for assistance from the Fund; and (vii) take such other actions as the Fund deems appropriate. (D) Consultation with tribal governments In reviewing the performance of any as- sisted community development financial in- stitution, the investment area of which in- cludes an Indian reservation, or the targeted population of which includes an Indian tribe, the Fund shall consult with, and seek input from, any appropriate tribal government. (g) Authority to sell equity investments and loans The Fund may, at any time, sell its equity in- vestments and loans, but the Fund shall retain the power to enforce limitations on assistance entered into in accordance with the require- ments of this subchapter until the performance goals related to the investment or loan have been met. (h) No authority to limit supervision and regula- tion Nothing in this subchapter shall affect any au- thority of the appropriate Federal banking agency to supervise and regulate any institution or company. (Pub. L. 103–325, title I, § 108, Sept. 23, 1994, 108 Stat. 2172.) Editorial Notes REFERENCES IN TEXT The Housing and Community Development Act of 1974, referred to in subsec. (e)(4), 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. § 4708. Training (a) In general The Fund may operate a training program to increase the capacity and expertise of commu- nity development financial institutions and other members of the financial services industry to undertake community development finance activities. (b) Program activities The training program shall provide edu- cational programs to assist community develop- ment financial institutions and other members of the financial services industry in developing lending and investment products, underwriting and servicing loans, managing equity invest- ments, and providing development services tar- geted to areas of economic distress, low-income persons, and persons who lack adequate access to loans and equity investments. (c) Participation The training program shall be made available to community development financial institu- tions and other members of the financial serv- ices industry that serve or seek to serve areas of economic distress, low-income persons, and per- sons who lack adequate access to loans and eq- uity investments. (d) Contracting The Fund may offer the training program de- scribed in this section directly or through a con- tract with other organizations. The Fund may contract to provide the training program through organizations that possess special ex- pertise in community development, without re- gard to whether the organizations receive or are eligible to receive assistance under this sub- chapter. Page 1739 TITLE 12—BANKS AND BANKING § 4712 1 So in original. Probably should be followed by a period. (e) Coordination The Fund shall coordinate with other appro- priate Federal departments or agencies that op- erate similar training programs in order to pre- vent duplicative efforts. (f) Regulatory fee for providing training services (1) General rule The Fund may, at the discretion of the Ad- ministrator and in accordance with this sub- section, assess and collect regulatory fees solely to cover the costs of the Fund in pro- viding training services under a training pro- gram operated in accordance with this section. (2) Persons subject to fee Fees may be assessed under paragraph (1) only on persons who participate in the train- ing program. (3) Limitation on manner of collection Fees may be assessed and collected under this subsection only in such manner as may reasonably be expected to result in the collec- tion of an aggregate amount of fees during any fiscal year which does not exceed the aggre- gate costs of the Fund for such year in pro- viding training services under a training pro- gram operated in accordance with this sec- tion 1 (4) Limitation on amount of fee The amount of any fee assessed under this subsection on any person may not exceed the amount which is reasonably based on the pro- portion of the training services provided under a training program operated in accordance with this section which relate to such person. (Pub. L. 103–325, title I, § 109, Sept. 23, 1994, 108 Stat. 2176.) § 4709. Encouragement of private entities The Fund may facilitate the organization of corporations in which the Federal Government has no ownership interest. The purpose of any such entity shall be to assist community devel- opment financial institutions in a manner that is complementary to the activities of the Fund under this subchapter. Any such entity shall be managed exclusively by persons not employed by the Federal Government or any agency or in- strumentality thereof, or by any State or local government or any agency or instrumentality thereof. (Pub. L. 103–325, title I, § 110, Sept. 23, 1994, 108 Stat. 2177.) § 4710. Collection and compilation of information The Fund shall— (1) collect and compile information perti- nent to community development financial in- stitutions that will assist in creating, devel- oping, expanding, and preserving such institu- tions; and (2) make such information available to pro- mote the purposes of this subchapter. (Pub. L. 103–325, title I, § 111, Sept. 23, 1994, 108 Stat. 2177.) § 4711. Investment of receipts and proceeds (a) Establishment of account Any dividends on equity investments and pro- ceeds from the disposition of investments, de- posits, or credit union shares that are received by the Fund as a result of assistance provided pursuant to section 4707 or 4712 of this title, and any fees received pursuant to section 4708(f) of this title shall be deposited and accredited to an account of the Fund in the United States Treas- ury (hereafter in this section referred to as ‘‘the account’’) established to carry out the purpose of this subchapter. (b) Investments Upon request of the Administrator, the Sec- retary of the Treasury shall invest amounts de- posited in the account in public debt securities with maturities suitable to the needs of the Fund, as determined by the Administrator, and bearing interest at rates determined by the Sec- retary of the Treasury, comparable to current market yields on outstanding marketable obli- gations of the United States of similar matu- rities. (c) Availability Amounts deposited into the account and inter- est earned on such amounts pursuant to this section shall be available to the Fund until ex- pended. (Pub. L. 103–325, title I, § 112, Sept. 23, 1994, 108 Stat. 2177.) § 4712. Capitalization assistance to enhance li- quidity (a) Assistance (1) In general The Fund may provide assistance for the purpose of providing capital to organizations to purchase loans or otherwise enhance the li- quidity of community development financial institutions, if— (A) the primary purpose of such organiza- tions is to promote community develop- ment; and (B) any assistance received is matched with funds— (i) from sources other than the Federal Government; (ii) on the basis of not less than one dol- lar for each dollar provided by the Fund; and (iii) that are comparable in form and value to the assistance provided by the Fund. (2) Limitation on other assistance An organization that receives assistance under this section may not receive other fi- nancial or technical assistance under this sub- chapter. (3) Construction of Federal Government funds For purposes of this subsection, notwith- standing section 105(a)(9) of the Housing and Community Development Act of 1974 [42 U.S.C. 5305(a)(9)], funds provided pursuant to such Act shall be considered to be Federal Govern- ment funds.