12 U.S.C. § 4701 — Findings and purposes

Page 1725 TITLE 12—BANKS AND BANKING § 4701 or may, under the direction and control of the Attor- ney General, bring such an action. Such courts shall have jurisdiction and power to order and require com- pliance therewith.’’ See Codification note above. Subsec. (d). Pub. L. 110–289, § 1158(a)(4), inserted ‘‘en- terprise-affiliated party’’ before ‘‘may allow’’. See Codification note above. Pub. L. 110–289, § 1156(b)(4), which directed substi- tution of ‘‘regulated entity’’ for ‘‘enterprise’’, was exe- cuted by making the substitution in two places to re- flect the probable intent of Congress. Subsec. (e). Pub. L. 110–289, § 1158(a)(5), added subsec. (e). See Codification note above. § 4642. Reporting of fraudulent loans (a) Requirement to report The Director shall require a regulated entity to submit to the Director a timely report upon discovery by the regulated entity that it has purchased or sold a fraudulent loan or financial instrument, or suspects a possible fraud relating to the purchase or sale of any loan or financial instrument. The Director shall require each reg- ulated entity to establish and maintain proce- dures designed to discover any such trans- actions. (b) Protection from liability for reports Any regulated entity that, in good faith, makes a report pursuant to subsection (a), and any entity-affiliated party, that, in good faith, makes or requires another to make any such re- port, shall not be liable to any person under any provision of law or regulation, any constitution, law, or regulation of any State or political sub- division of any State, or under any contract or other legally enforceable agreement (including any arbitration agreement) for such report or for any failure to provide notice of such report to the person who is the subject of such report or any other persons identified in the report. (Pub. L. 102–550, title XIII, § 1379E, as added Pub. L. 110–289, div. A, title I, § 1115, July 30, 2008, 122 Stat. 2681.) CHAPTER 47—COMMUNITY DEVELOPMENT BANKING SUBCHAPTER I—COMMUNITY DEVELOPMENT BANKING AND FINANCIAL INSTITUTIONS Sec. 4701. Findings and purposes. 4702. Definitions. 4703. Establishment of national Fund for commu- nity development banking. 4703a. Capital investments for neighborhoods dis- proportionately impacted by the COVID–19 pandemic. 4704. Applications for assistance. 4705. Community partnerships. 4706. Selection of institutions. 4707. Assistance provided by Fund. 4708. Training. 4709. Encouragement of private entities. 4710. Collection and compilation of information. 4711. Investment of receipts and proceeds. 4712. Capitalization assistance to enhance liquid- ity. 4713. Incentives for depository institution partici- pation. 4713a. Guarantees for bonds and notes issued for community or economic development pur- poses. 4714. Recordkeeping. 4715. Special provisions with respect to institu- tions that are supervised by Federal bank- ing agencies. Sec. 4716. Studies and reports; examination and audit. 4717. Enforcement. 4718. Authorization of appropriations. 4719. Grants to establish loan-loss reserve funds. SUBCHAPTER II—SMALL BUSINESS CAPITAL ENHANCEMENT 4741. Findings and purposes. 4742. Definitions. 4743. Approving States for participation. 4744. Participation agreements. 4745. Terms of participation agreements. 4746. Reports. 4747. Reimbursement by Fund. 4748. Reimbursement to Fund. 4749. Regulations. 4750. Authorization of appropriations. SUBCHAPTER I—COMMUNITY DEVELOP- MENT BANKING AND FINANCIAL INSTI- TUTIONS § 4701. Findings and purposes (a) Findings The Congress finds that— (1) many of the Nation’s urban, rural, and Native American communities face critical so- cial and economic problems arising in part from the lack of economic growth, people liv- ing in poverty, and the lack of employment and other opportunities; (2) the restoration and maintenance of the economies of these communities will require coordinated development strategies, intensive supportive services, and increased access to equity investments and loans for development activities, including investment in businesses, housing, commercial real estate, human devel- opment, and other activities that promote the long-term economic and social viability of the community; and (3) community development financial insti- tutions have proven their ability to identify and respond to community needs for equity in- vestments, loans, and development services. (b) Purpose The purpose of this subchapter is to create a Community Development Financial Institutions Fund to promote economic revitalization and community development through investment in and assistance to community development fi- nancial institutions, including enhancing the li- quidity of community development financial in- stitutions. (Pub. L. 103–325, title I, § 102, Sept. 23, 1994, 108 Stat. 2163.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in subsec. (b), was in original ‘‘this subtitle’’, meaning subtitle A of title I of Pub. L. 103–325, Sept. 23, 1994, 108 Stat. 2163, which is classified principally to this subchapter. For complete classification of this subtitle to the Code, see Short Title note below and Tables. Statutory Notes and Related Subsidiaries SHORT TITLE Pub. L. 103–325, § 1(a), Sept. 23, 1994, 108 Stat. 2160, pro- vided that: ‘‘This Act [see Tables for classification] Page 1726 TITLE 12—BANKS AND BANKING § 4702 may be cited as the ‘Riegle Community Development and Regulatory Improvement Act of 1994’.’’ Pub. L. 103–325, title I, § 101, Sept. 23, 1994, 108 Stat. 2163, provided that: ‘‘This subtitle [subtitle A (§§ 101–121) of title I of Pub. L. 103–325, enacting this subchapter and section 1772c–1 of this title, amending sections 1766 and 1834a of this title, section 5313 of Title 5, Government Organization and Employees, section 11 of Pub. L. 95–452 set out in the Appendix to Title 5, sec- tion 657 of Title 18, Crimes and Criminal Procedure, and section 9101 of Title 31, Money and Finance, and enact- ing provisions set out as a note under section 11 of Pub. L. 95–452 set out in the Appendix to Title 5] may be cited as the ‘Community Development Banking and Fi- nancial Institutions Act of 1994’.’’ § 4702. Definitions For purposes of this subchapter, the following definitions shall apply: (1) Administrator The term ‘‘Administrator’’ means the Ad- ministrator of the Fund appointed under sec- tion 4703(b) of this title. (2) Appropriate Federal banking agency The term ‘‘appropriate Federal banking agency’’ has the same meaning as in section 1813 of this title, and also includes the Na- tional Credit Union Administration Board with respect to insured credit unions. (3) Affiliate The term ‘‘affiliate’’ has the same meaning as in section 1841(k) of this title. (4) Board The term ‘‘Board’’ means the Community Development Advisory Board established under section 4703(d) of this title. (5) Community development financial institu- tion (A) In general The term ‘‘community development finan- cial institution’’ means a person (other than an individual) that— (i) has a primary mission of promoting community development; (ii) serves an investment area or tar- geted population; (iii) provides development services in conjunction with equity investments or loans, directly or through a subsidiary or affiliate; (iv) maintains, through representation on its governing board or otherwise, ac- countability to residents of its investment area or targeted population; and (v) is not an agency or instrumentality of the United States, or of any State or po- litical subdivision of a State. (B) Conditions for qualification of holding companies (i) Consolidated treatment A depository institution holding com- pany may qualify as a community develop- ment financial institution only if the hold- ing company and the subsidiaries and af- filiates of the holding company collec- tively satisfy the requirements of subpara- graph (A). (ii) Exclusion of subsidiary or affiliate for failure to meet consolidated treatment rule No subsidiary or affiliate of a depository institution holding company may qualify as a community development financial in- stitution if the holding company and the subsidiaries and affiliates of the holding company do not collectively meet the re- quirements of subparagraph (A). (C) Conditions for subsidiaries No subsidiary of an insured depository in- stitution may qualify as a community devel- opment financial institution if the insured depository institution and its subsidiaries do not collectively meet the requirements of subparagraph (A). (6) Community partner The term ‘‘community partner’’ means a person (other than an individual) that pro- vides loans, equity investments, or develop- ment services, including a depository institu- tion holding company, an insured depository institution, an insured credit union, a non- profit organization, a State or local govern- ment agency, a quasi-governmental entity, and an investment company authorized to op- erate pursuant to the Small Business Invest- ment Act of 1958 [15 U.S.C. 661 et seq.]. (7) Community partnership The term ‘‘community partnership’’ means an agreement between a community develop- ment financial institution and a community partner to provide development services, loans, or equity investments, to an investment area or targeted population. (8) Depository institution holding company The term ‘‘depository institution holding company’’ has the same meaning as in section 1813 of this title. (9) Development services The term ‘‘development services’’ means ac- tivities that promote community development and are integral to lending or investment ac- tivities, including— (A) business planning; (B) financial and credit counseling; and (C) marketing and management assist- ance. (10) Fund The term ‘‘Fund’’ means the Community De- velopment Financial Institutions Fund estab- lished under section 4703(a) of this title. (11) Indian reservation The term ‘‘Indian reservation’’ has the same meaning as in section 1903(10) of title 25, and shall include land held by incorporated Native groups, regional corporations, and village cor- porations, as defined in or established pursu- ant to the Alaska Native Claims Settlement Act [43 U.S.C. 1601 et seq.], public domain In- dian allotments, and former Indian reserva- tions in the State of Oklahoma. (12) Indian tribe The term ‘‘Indian tribe’’ means any Indian tribe, band, pueblo, nation, or other organized