12 U.S.C. § 4702 — Definitions

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 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-