[Congressional Bills 103th Congress]
[From the U.S. Government Printing Office]
[H.R. 3474 Enrolled Bill (ENR)]
H.R.3474
One Hundred Third Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-fifth day of January, one thousand nine hundred and ninety-
four
An Act
To reduce administrative requirements for insured depository
institutions to the extent consistent with safe and sound banking
practices, to facilitate the establishment of community development
financial institutions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

44c0b7160670ddd3fbdf808a8e823adbd54ce1c13dea05f299d69beddc652b56

(a) Short Title.--This Act may be cited as the ``Riegle Community
Development and Regulatory Improvement Act of 1994''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

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Subtitle A--Community Development Banking and Financial Institutions Act

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TITLE I

-COMMUNITY DEVELOPMENT AND CONSUMER PROTECTION

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Subtitle B--Home Ownership and Equity Protection

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Subtitle A--Small Business Loan Securitization

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TITLE II

-SMALL BUSINESS CAPITAL FORMATION

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Subtitle B--Small Business Capital Enhancement

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TITLE III

-PAPERWORK REDUCTION AND REGULATORY IMPROVEMENT

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registration under the Securities Act of 1933.

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of reports consistent with effective law enforcement.

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TITLE IV

-MONEY LAUNDERING

recordkeeping and reporting requirements.

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currency exchange, and money transmitting businesses.

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TITLE V

-NATIONAL FLOOD INSURANCE REFORM

Subtitle B--Compliance and Increased Participation

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Subtitle C--Ratings and Incentives for Community Floodplain Management
Programs

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Floodplain.
Subtitle F--Miscellaneous Provisions

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Subtitle A--Community Development Banking and Financial Institutions
Act

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TITLE VI

-MISCELLANEOUS PROVISIONS

This subtitle may be cited as the ``Community Development Banking
and Financial Institutions Act of 1994''.

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(a) Findings.--The Congress finds that--
(1) many of the Nation's urban, rural, and Native American
communities face critical social and economic problems arising in
part from the lack of economic growth, people living 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
development, and other activities that promote the long-term
economic and social viability of the community; and
(3) community development financial institutions have proven
their ability to identify and respond to community needs for equity
investments, loans, and development services.
(b) Purpose.--The purpose of this subtitle is to create a Community
Development Financial Institutions Fund to promote economic
revitalization and community development through investment in and
assistance to community development financial institutions, including
enhancing the liquidity of community development financial
institutions.

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For purposes of this subtitle, the following definitions shall
apply:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Fund appointed under section 104(b).
(2) Appropriate federal banking agency.--The term ``appropriate
Federal banking agency'' has the same meaning as in section 3 of
the Federal Deposit Insurance Act, and also includes the National
Credit Union Administration Board with respect to insured credit
unions.
(3) Affiliate.--The term ``affiliate'' has the same meaning as
in section 2(k) of the Bank Holding Company Act of 1956.
(4) Board.--The term ``Board'' means the Community Development
Advisory Board established under section 104(d).
(5) Community development financial institution.--
(A) In general.--The term ``community development financial
institution'' means a person (other than an individual) that--
(i) has a primary mission of promoting community
development;
(ii) serves an investment area or targetedP 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, accountability 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 political subdivision of a
State.
(B) Conditions for qualification of holding companies.--
(i) Consolidated treatment.--A depository institution
holding company may qualify as a community development
financial institution only if the holding company and the
subsidiaries and affiliates of the holding company
collectively satisfy the requirements of subparagraph (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 institution if
the holding company and the subsidiaries and affiliates of
the holding company do not collectively meet the
requirements of subparagraph (A).
(C) Conditions for subsidiaries.--No subsidiary of an
insured depository institution may qualify as a community
development 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 provides loans, equity
investments, or development services, including a depository
institution holding company, an insured depository institution, an
insured credit union, a nonprofit organization, a State or local
government agency, a quasi-governmental entity, and an investment
company authorized to operate pursuant to the Small Business
Investment Act of 1958.
(7) Community partnership.--The term ``community partnership''
means an agreement between a community development 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 3 of the Federal Deposit Insurance Act.
(9) Development services.--The term ``development services''
means activities that promote community development and are
integral to lending or investment activities, including--
(A) business planning;
(B) financial and credit counseling; and
(C) marketing and management assistance.
(10) Fund.--The term ``Fund'' means the Community Development
Financial Institutions Fund established under section 104(a).
(11) Indian reservation.--The term ``Indian reservation'' has
the same meaning as in section 4(10) of the Indian Child Welfare
Act of 1978, and shall include land held by incorporated Native
groups, regional corporations, and village corporations, as defined
in or established pursuant to the Alaska Native Claims Settlement
Act, public domain Indian allotments, and former Indian
reservations in the State of Oklahoma.
(12) Indian tribe.--The term ``Indian tribe'' means any Indian
tribe, band, pueblo, nation, or other organized group or community,
including any Alaska Native village or regional or village
corporation, as defined in or established pursuant to the Alaska
Native Claims Settlement Act, which is recognized as eligible for
the special programs and services provided by the United States to
Indians because 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 101(7) of the Federal Credit
Union Act.
(15) Insured depository institution.--The term ``insured
depository institution'' has the same meaning as in section 3 of
the Federal Deposit Insurance Act.
(16) Investment area.--The term ``investment area'' means a
geographic 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 families or the extent of poverty, the rate of
unemployment or underemployment, rural population outmigration,
lag in population growth, and extent of blight and
disinvestment; and
(ii) has significant unmet needs for loans or equity
investments; or
(B) encompasses or is located in an empowerment zone or
enterprise community designated under section 1391 of the
Internal Revenue Code of 1986.
(17) Low-income.--The term ``low-income'' means having an
income, 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 nonmetropolitan area
median income.
(18) State.--The term ``State'' has the same meaning as in
section 3 of the Federal Deposit Insurance Act.
(19) Subsidiary.--The term ``subsidiary'' has the same meaning
as in section 3 of the Federal Deposit Insurance Act, except that a
community development financial institution that is a corporation
shall not be considered to be a subsidiary of any insured
depository 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 control in any
manner the election of a majority of the directors of the
corporation.
(20) Targeted population.--The term ``targeted population''
means individuals, 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 109.

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BANKING.
(a) Establishment.--
(1) In general.--There is established a corporation to be known
as the Community Development Financial Institutions Fund that shall
have the duties and responsibilities specified by this subtitle and
subtitle B of title II. The Fund shall have succession until
dissolved. The offices of the Fund shall be in Washington, D.C. The
Fund shall not be affiliated with or be within any other agency or
department of the Federal Government.
(2) Wholly owned government corporation.--The Fund shall be a
wholly owned Government corporation in the executive branch and
shall be treated in all respects as an agency of the United States,
except as otherwise provided in this subtitle.
(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, by and with the advice and consent of the Senate. 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 financial officer, who shall have the authority and functions
of an agency Chief Financial Officer under section 902 of title 31,
United States Code. In the event of a vacancy in the position of
the Administrator or during the absence or disability of the
Administrator, the chief financial officer shall perform the duties
of the position of Administrator.
(3) Other officers and employees.--The Administrator may
appoint such other officers and employees of the Fund as the
Administrator determines to be necessary or appropriate.
(4) Expedited hiring.--During the 2-year period beginning on
the date of enactment of this Act, the Administrator may--
(A) appoint and terminate the individuals referred to in
paragraphs (2) and (3) without regard to the civil service laws
and regulations; and
(B) fix the compensation of the individuals referred to in
paragraph (3) without regard to the provisions of chapter 51
and subchapter III of chapter 53 of title 5, United States
Code, relating to classification of positions and General
Schedule pay rates, except that the rate of pay for such
individuals may not exceed the rate payable for level V of the
Executive Schedule under section 5316 of such title.
(c) General Powers.--In carrying out the functions of the Fund, the
Administrator--
(1) shall have all necessary and proper authority to carry out
this subtitle and subtitle B of title II;
(2) shall have the power to adopt, alter, and use a corporate
seal for the Fund, which shall be judicially noticed;
(3) may adopt, amend, and repeal bylaws, rules, and regulations
governing the manner in which business of the Fund may be conducted
and such rules and regulations as may be necessary or appropriate
to implement this subtitle and subtitle B of title II;
(4) may enter into, perform, and enforce such agreements,
contracts, and transactions as may be deemed necessary or
appropriate to the conduct of activities authorized under this
subtitle and subtitle B of title II;
(5) may determine the character of and necessity for
expenditures of the Fund and the manner in which they shall be
incurred, allowed, and paid;
(6) may utilize or employ the services of personnel of any
agency or instrumentality of the United States with the consent of
the agency or instrumentality concerned on a reimbursable or
nonreimbursable basis; and
(7) may execute all instruments necessary or appropriate in the
exercise of any of the functions of the Fund under this subtitle
and subtitle B of title II and may delegate to the officers of the
Fund such of the powers and responsibilities of the Administrator
as the Administrator deems necessary or appropriate for the
administration of the Fund.
(d) Advisory Board.--
(1) Establishment.--There is established an advisory board to
the Fund to be known as the Community Development Advisory Board,
which shall be operated in accordance with the provisions of the
Federal Advisory Committee Act, except that section 14 of that Act
does not apply to the Board.
(2) Membership.--The Board shall consist of 15 members,
including--
(A) the Secretary of Agriculture or his or her designee;
(B) the Secretary of Commerce or his or her designee;
(C) the Secretary of Housing and Urban Development or his
or her designee;
(D) the Secretary of the Interior or his or her designee;
(E) the Secretary of the Treasury or his or her designee;
(F) the Administrator of the Small Business Administration
or his or her designee; and
(G) 9 private citizens, appointed by the President, who
shall be selected, to the maximum extent practicable, to
provide for national geographic representation and racial,
ethnic, and gender diversity, including--
(i) 2 individuals who are officers of existing
community development financial institutions;
(ii) 2 individuals who are officers of insured
depository institutions;
(iii) 2 individuals who are officers of national
consumer or public interest organizations;
(iv) 2 individuals who have expertise in community
development; and
(v) 1 individual who has personal experience and
specialized expertise in the unique lending and community
development issues confronted by Indian tribes on Indian
reservations.
(3) Chairperson.--The members of the Board specified in
paragraph (2)(G) shall select, by majority vote, a chairperson of
the Board, who shall serve for a term of 2 years.
(4) Board function.--It shall be the function of the Board to
advise the Administrator on the policies of the Fund regarding
activities under this subtitle. The Board shall not advise the
Administrator on the granting or denial of any particular
application.
(5) Terms of private members.--
(A) In general.--Each member of the Board appointed under
paragraph (2)(G) shall serve for a term of 4 years.
(B) Vacancies.--Any member appointed to fill a vacancy
occurring prior to the expiration of the term for which the
previous member was appointed shall be appointed for the
remainder of such term. Members may continue to serve following
the expiration of their terms until a successor is appointed.
(6) Meetings.--The Board shall meet at least annually and at
such other times as requested by the Administrator or the
chairperson. A majority of the members of the Board shall
constitute a quorum.
(7) Reimbursement for expenses.--The members of the Board may
receive reimbursement for travel, per diem, and other necessary
expenses incurred in the performance of their duties, in accordance
with the Federal Advisory Committee Act.
(8) Costs and expenses.--The Fund shall provide to the Board
all necessary staff and facilities.
(e) Conforming Amendments.--Section 9101(3) of title 31, United
States Code, is amended--
(1) by redesignating subparagraphs (B) through (M) as
subparagraphs (C) through (N), respectively; and
(2) by inserting after subparagraph (A) the following new
subparagraph:
``(B) the Community Development Financial Institutions
Fund;''.
(f) Government Corporation Control Act Exemption.--Section 9107(b)
of title 31, United States Code, shall not apply to deposits of the
Fund made pursuant to section 108.
(g) Limitation of Fund and Federal Liability.--The liability of the
Fund and the United States Government arising out of any investment in
a community development financial institution in accordance with this
subtitle shall be limited to the amount of the investment. The Fund
shall be exempt from any assessments and other liabilities that may be
imposed on controlling or principal shareholders by any Federal law or
the law of any State, Territory, or the District of Columbia. Nothing
in this subsection shall affect the application of any Federal tax law.
(h) Prohibition on Issuance of Securities.--The Fund may not issue
stock, bonds, debentures, notes, or other securities.
(i) Compensation.--Title 5, United States Code, is amended in
section 5313, by adding at the end the following:
``Administrator of the Community Development Financial
Institutions Fund.''.
(j) Assisted Institutions Not United States Instrumentalities.--A
community development financial institution or other organization that
receives assistance pursuant to this subtitle shall not be deemed to be
an agency, department, or instrumentality of the United States.
(k) Transition Period.--
(1) In general.--During the transition period, the Secretary of
the Treasury may--
(A) assist in the establishment of the administrative
functions of the Fund listed in paragraph (2); and
(B) hire not more than 6 individuals to serve as employees
of the Fund during the transition period.
(2) Continued service.--Individuals hired in accordance with
paragraph (1)(B) may continue to serve as employees of the Fund
after the transition period.
(3) Administrative functions.--The administrative functions
referred to in paragraph (1)(A) shall be limited to--
(A) establishing accounting, information, and recordkeeping
systems for the Fund; and
(B) procuring office space, equipment, and supplies.
(4) Expedited hiring.--During the transition period, the
Secretary of the Treasury may--
(A) appoint and terminate the individuals referred to in
paragraph (1)(B) without regard to the civil service laws and
regulations; and
(B) fix the compensation of the individuals referred to in
paragraph (1)(B) without regard to the provisions of chapter 51
and subchapter III of chapter 53 of title 5, United States
Code, relating to classification of positions and General
Schedule pay rates, except that the rate of pay for such
individuals may not exceed the rate payable for level V of the
Executive Schedule under section 5316 of such title.
(5) Certain employees.--During the transition period, employees
of the Department of the Treasury may only comprise less than one-
half of the total number of individuals hired in accordance with
paragraph (1)(B).
(6) Transition expenses.--Amounts previously appropriated to
the Department of the Treasury may be used to pay obligations and
expenses of the Fund incurred under this section, and such amounts
may be reimbursed by the Fund to the Department of the Treasury
from amounts appropriated to the Fund for fiscal year 1995.
(7) Definition.--For purposes of this subsection, the term
``transition period'' means the period beginning on the date of
enactment of this Act and ending on the date on which the
Administrator is appointed.

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(a) Form and Procedures.--An application for assistance under this
subtitle shall be submitted in such form and in accordance with such
procedures as the Fund shall establish.
(b) Minimum Requirements.--Except as provided in sections 106 and
113, the Fund shall require an application--
(1) to establish that the applicant is, or will be, a community
development financial institution;
(2) to include a comprehensive strategic plan for the
organization that contains--
(A) a business plan of not less than 5 years in duration
that demonstrates that the applicant will be properly managed
and will have the capacity to operate as a community
development financial institution that will not be dependent
upon assistance from the Fund for continued viability;
(B) an analysis of the needs of the investment area or
targeted population and a strategy for how the applicant will
attempt to meet those needs;
(C) a plan to coordinate use of assistance from the Fund
with existing Federal, State, local, and tribal government
assistance programs, and private sector financial services;
(D) an explanation of how the proposed activities of the
applicant are consistent with existing economic, community, and
housing development plans adopted by or applicable to an
investment area or targeted population; and
(E) a description of how the applicant will coordinate with
community organizations and financial institutions which will
provide equity investments, loans, secondary markets, or other
services to investment areas or targeted populations;
(3) to include a detailed description of the applicant's plans
and likely sources of funds to match the amount of assistance
requested from the Fund;
(4) in the case of an applicant that has previously received
assistance under this subtitle, to demonstrate that the applicant--
(A) has substantially met its performance goals and
otherwise carried out its responsibilities under this subtitle
and the assistance agreement; and
(B) will expand its operations into a new investment area
or serve a new targeted population, offer more products or
services, or increase the volume of its business;
(5) in the case of an applicant with a prior history of serving
investment areas or targeted populations, to demonstrate that the
applicant--
(A) has a record of success in serving investment areas or
targeted populations; and
(B) will expand its operations into a new investment area
or to serve a new targeted population, offer more products or
services, or increase the volume of its current business; and
(6) to include such other information as the Fund deems
appropriate.
(c) Preapplication Outreach Program.--The Fund shall provide an
outreach program to identify and provide information to potential
applicants and may provide technical assistance to potential
applicants, but shall not assist in the preparation of anyP
application.

e386cea1413e489330745e640d8fff853e8eb06a8fb8bcdf7b45028d82708374

(a) Application.--An application for assistance may be filed
jointly by a community development financial institution and a
community partner to carry out a community partnership.
(b) Application Requirements.--The Fund shall require a community
partnership application--
(1) to meet the minimum requirements established for community
development financial institutions under section 105(b), except
that the criteria specified in paragraphs (1) and (2)(A) of section
105(b) shall not apply to the communityP partner;
(2) to describe how each coapplicant will participate in
carrying out the community partnership and how the partnership will
enhance activities serving the investment area or targeted
population; and
(3) to demonstrate that the community partnership activities
are consistent with the strategic plan submitted by the community
development financial institution coapplicant.
(c) Selection Criteria.--The Fund shall consider a community
partnership application based on--
(1) the community development financial institution
coapplicant--
(A) meeting the minimum selection criteria described in
section 105; and
(B) satisfying the selection criteria of section 107;
(2) the extent to which the community partner coapplicant will
participate in carrying out the partnership;
(3) the extent to which the community partnership will enhance
the likelihood of success of the community development financial
institution coapplicant's strategic plan; and
(4) the extent to which service to the investment area or
targeted population will be better performed by a partnership as
opposed to the individual community development financial
institution coapplicant.
(d) Limitation on Distribution of Assistance.--Assistance provided
upon approval of an application under this section shall be distributed
only to the community development financial institution coapplicant,
and shall not be used to fund any activities carried out directly by
the community partner or an affiliate or subsidiary thereof.
(e) Other Requirements and Limitations.--All other requirements and
limitations imposed by this subtitle on a community development
financial institution assisted under this subtitle shall apply (in the
manner that the Fund determines to be appropriate) to assistance
provided to carry out community partnerships. The Fund may establish
additional guidelines and restrictions on the use of Federal funds to
carry out community partnerships.

524661a6ce0f6affa95333bc5e93011d84f2f1668562516b5aab87f413adac75

(a) Selection Criteria.--Except as provided in section 113, the
Fund shall, in its sole discretion, select community development
financial institution applicants meeting the requirements of section
105 for assistance based on--
(1) the likelihood of success of the applicant in meeting the
goals of its comprehensive strategic plan;
(2) the experience and background of the management team;
(3) the extent of need for equity investments, loans, and
development services within the investment areas or targeted
populations;
(4) the extent of economic distress within the investment areas
or the extent of need within the targeted populations, as those
factors are measured by objective criteria;
(5) the extent to which the applicant will concentrateP its
activities on serving its investment areas or targetedP
populations;
(6) the amount of firm commitments to meet or exceed the
matching requirements and the likely success of the plan for
raising the balance of the match;
(7) the extent to which the matching funds are derived from
private sources;
(8) the extent to which the proposed activities will expand
economic opportunities within the investment areas or the targeted
populations;
(9) whether the applicant is, or will become, an insured
community development financial institution;
(10) the extent of support from the investment areas or
targeted populations;
(11) the extent to which the applicant is, or will be,
community-owned or community-governed;
(12) the extent to which the applicant will increase its
resources through coordination with other institutions or
participation in a secondary market;
(13) in the case of an applicant with a prior history of
serving investment areas or targeted populations, the extent of
success in serving them; and
(14) other factors deemed to be appropriate by the Fund.
(b) Geographic Diversity.--In selecting applicants for assistance,
the Fund shall seek to fund a geographically diverse group of
applicants, which shall include applicants from metropolitan,
nonmetropolitan, and rural areas.

fc05be98f9e702a9458bcd6ccd469cfcf5e442d0b7545ba38f706033da301a88

(a) Forms of Assistance.--
(1) In general.--The Fund may provide--
(A) financial assistance through equity investments,
deposits, credit union shares, loans, and grants; and
(B) technical assistance--
(i) directly;
(ii) through grants; or
(iii) by contracting with organizations that possess
expertise in community development finance, without regard
to whether the organizations receive or are eligible to
receive assistance under this subtitle.
(2) Equity investments.--
(A) Limitation on equity investments.--The Fund shall not
own more than 50 percent of the equity of a community
development financial institution and may not control the
operations of such institution. The Fund may hold only
transferable, nonvoting equity investments in the institution.
Such equity investments may provide for convertibility to
voting stock upon transfer by the Fund.
(B) Fund deemed not to control.--Notwithstanding any other
provision of law, the Fund shall not be deemed to control a
community development financial institution by reason of any
assistance provided under this subtitle for the purpose of any
other applicable law to the extent that the Fund complies with
subparagraph (A). Nothing in this subparagraph shall affect the
application of any Federal tax law.
(3) Deposits.--Deposits made pursuant to this section in an
insured community development financial institution shall not be
subject to any requirement for collateral or security.
(4) Limitations on obligations.--Direct loan obligations may be
incurred by the Fund only to the extent that appropriations of
budget authority to cover their cost, as defined in section 502(5)
of the Congressional Budget Act of 1974, are made in advance.
(b) Uses of Financial Assistance.--
(1) In general.--Financial assistance made available under this
subtitle may be used by assisted community development financial
institutions to serve investment areas or targeted populations by
developing or supporting--
(A) commercial facilities that promote revitalization,
community stability, or job creation or retention;
(B) businesses that--
(i) provide jobs for low-income people or are owned by
low-income people; or
(ii) enhance the availability of products and services
to low-income people;
(C) community facilities;
(D) the provision of basic financial services;
(E) housing that is principally affordable to low-income
people, except that assistance used to facilitate homeownership
shall only be used for services and lending products--
(i) that serve low-income people; and
(ii) that--
(I) are not provided by other lenders in the area;
or
(II) complement the services and lending products
provided by other lenders that serve the investment
area or targeted population; and
(F) other businesses and activities deemed appropriate by
the Fund.
(2) Limitations.--No assistance made available under this
subtitle may be expended by a community development financial
institution (or an organization receiving assistance under section
113) to pay any person to influence or attempt to influence any
agency, elected official, officer, or employee of a State or local
government in connection with the making, award, extension,
continuation, renewal, amendment, or modification of any State or
local government contract, grant, loan, or cooperative agreement
(as such terms are defined in section 1352 of title 31, United
States Code).
(c) Uses of Technical Assistance.--
(1) Types of activities.--Technical assistance may be used for
activities that enhance the capacity of a community development
financial institution, such as training of management and other
personnel and development of programs and investment or loan
products.
(2) Availability of technical assistance.--The Fund may provide
technical assistance, regardless of whether or not the recipient
also receives financial assistance under thisP section.
(d) Amount of Assistance.--
(1) In general.--Except as provided in paragraph (2), the Fund
may provide not more than $5,000,000 of assistance, in the
aggregate, during any 3-year period to any 1 community development
financial institution and its subsidiaries andP affiliates.
(2) Exception.--The Fund may provide not more than $3,750,000
of assistance in addition to the amount specified in paragraph (1)
during the same 3-year period to an existing community development
financial institution that proposes to establish a subsidiary or
affiliate for the purpose of serving an investment area or targeted
population outside of any State and outside of any metropolitan
area presently served by the institution, if--
(A) the subsidiary or affiliate--
(i) would be a community development financial
institution; and
(ii) independently--
(I) meets the selection criteria described in
section 105; and
(II) satisfies the selection criteria of section
107; and
(B) no other application for assistance to serve the
investment area or targeted population has been submitted to
the Administrator within a reasonable period of time preceding
the date of receipt of the application at issue.
(3) Timing of assistance.--Assistance may be provided as
described in paragraphs (1) and (2) in a lump sum or over a period
of time, as determined by the Fund.
(e) Matching Requirements.--
(1) In general.--Assistance other than technical assistance
shall be matched with funds from sources other than the Federal
Government on the basis of not less than one dollar for each dollar
provided by the Fund. Such matching funds shall be at least
comparable in form and value to assistance provided by the Fund.
The Fund shall provide no Passistance (other than technical
assistance) until a community development financial institution has
secured firm commitments for the matching funds required.
(2) Exception.--In the case of an applicant with severe
constraints on available sources of matching funds, the Fund may
permit an applicant to comply with the matching requirements of
paragraph (1) by--
(A) reducing such matching requirement by 50 percent; or
(B) permitting an applicant to provide matching funds in a
form to be determined at the discretion of the Fund, if such
applicant--
(i) has total assets of less than $100,000;
(ii) serves nonmetropolitan or rural areas; and
(iii) is not requesting more than $25,000 in
assistance.
(3) Limitation.--Not more than 25 percent of the total funds
disbursed in any fiscal year by the Fund may be matched as
authorized under paragraph (2).
(4) Construction of ``federal government funds''.--For purposes
of this subsection, notwithstanding section 105(a)(9) of the
Housing and Community Development Act of 1974, funds provided
pursuant to such Act shall be considered to be Federal Government
funds.
(f) Terms and Conditions.--
(1) Soundness of unregulated institutions.--The Fund shall--
(A) ensure, to the maximum extent practicable, that each
community development financial institution (other than an
insured community development financial institution or
depository institution holding company) assisted under this
subtitle is financially and managerially sound and maintains
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 accountant as part
of the report required by section 115(e)(1); and
(C) require that all assistance granted under this section
is used by the community development financial institution or
community development partnership in a manner consistent with
the purposes of this subtitle.
(2) Assistance agreement.--
(A) In general.--Before providing any assistance under this
subtitle, the Fund and each community development financial
institution to be assisted shall enter into an agreement that
requires the institution to comply with performance goals and
abide by other terms and conditions pertinent to assistance
received under this subtitle.
(B) Performance goals.--Performance goals shall be
negotiated between the Fund and each community development
financial institution receiving assistance based upon the
strategic plan submitted pursuant to section 105(b)(2). Such
goals may be modified with the consent of the parties, or as
provided in subparagraph (C). Performance goals for insured
community development financial institutions shall be
determined in consultation with the appropriate Federal banking
agency.
(C) Sanctions.--The agreement shall provide that, in the
event of fraud, mismanagement, noncompliance with this
subtitle, 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 105(b)(2);
(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 assisted community development financial
institution, the investment area of which includes 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 investments and loans, but the Fund shall
retain the power to enforce limitations on assistance entered into in
accordance with the requirements of this subtitle until the performance
goals related to the investment or loan have been met.
(h) No Authority To Limit Supervision and Regulation.--Nothing in
this subtitle shall affect any authority of the appropriate Federal
banking agency to supervise and regulate any institution or company.

d3787099ada3311ee1f6ed9cbe739f0af094efb7e8e02759a287ffd24280f20d

(a) In General.--The Fund may operate a training program to
increase the capacity and expertise of community 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
educational programs to assist community development financial
institutions and other members of the financial services industry in
developing lending and investment products, underwriting and servicing
loans, managing equity investments, and providing development services
targeted 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 institutions and other members of the
financial services industry that serve or seek to serve areas of
economic distress, low-income persons, and persons who lack adequate
access to loans and equity investments.
(d) Contracting.--The Fund may offer the training program described
in this section directly or through a contract with other
organizations. The Fund may contract to provide the training program
through organizations that possess special expertise in community
development, without regard to whether the organizations receive or are
eligible to receive assistance under this subtitle.
(e) Coordination.--The Fund shall coordinate with other appropriate
Federal departments or agencies that operate similar training programs
in order to prevent duplicative efforts.
(f) Regulatory Fee for Providing Training Services.--
(1) General rule.--The Fund may, at the discretion of the
Administrator and in accordance with this subsection, assess and
collect regulatory fees solely to cover the costs of the Fund in
providing training services under a training program 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 training
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 collection of an aggregate
amount of fees during any fiscal year which does not exceed the
aggregate costs of the Fund for such year in providing training
services under a training program operated in accordance with this
section
(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 proportion of the training
services provided under a training program operated in accordance
with this section which relate to such person.

71f2a157bf2d55ce61cfbc43779c0ae105af021100928566ceee54c99391ca55

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 development financial
institutions in a manner that is complementary to the activities of the
Fund under this subtitle. Any such entity shall be managed exclusively
by persons not employed by the Federal Government or any agency or
instrumentality thereof, or by any State or local government or any
agency or instrumentality thereof.

4d3b83eb4910853933dfe56c90c9bd42e006db64ca1bbedd0bb569538297f522

The Fund shall--
(1) collect and compile information pertinent to community
development financial institutions that will assist in creating,
developing, expanding, and preserving such institutions; and
(2) make such information available to promote the purposes of
this subtitle.

1d168756e323694d1ea69b51a6387d4ac18d78b6bd7504f147fdc0132dc8932f

(a) Establishment of Account.--Any dividends on equity investments
and proceeds from the disposition of investments, deposits, or credit
union shares that are received by the Fund as a result of assistance
provided pursuant to section 108 or 113, and any fees received pursuant
to section 109(f) shall be deposited and accredited to an account of
the Fund in the United States Treasury (hereafter in this section
referred to as ``the account'') established to carry out the purpose of
this subtitle.
(b) Investments.--Upon request of the Administrator, the Secretary
of the Treasury shall invest amounts deposited 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 Secretary of the Treasury, comparable to current
market yields on outstanding marketable obligations of the United
States of similar maturities.
(c) Availability.--Amounts deposited into the account and interest
earned on such amounts pursuant to this section shall be available to
the Fund until expended.

9316ce2dc868c41f251542817f134b33ad00d9d7b59ae6b11b64d047e17eab2c

(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 liquidity of community development financial
institutions, if--
(A) the primary purpose of such organizations is to promote
community development; 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 dollar 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
financial or technical assistance under this subtitle.
(3) Construction of federal government funds.--For purposes of
this subsection, notwithstanding section 105(a)(9) of the Housing
and Community Development Act of 1974, funds provided pursuant to
such Act shall be considered to be Federal Government funds.
(b) Selection.--The selection of organizations to receive
assistance under this section shall be at the discretion of the Fund
and in accordance with criteria established by the Fund. In
establishing such criteria, the Fund shall take into account the
criteria contained in sections 105(b) and 107, 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 provided 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 accountant, 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 provision of assistance
to any organization in accordance 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 controlling or principal shareholders by any Federal law or the
law of any State, or territory. Nothing in this paragraph shall
affect the application 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, reimburse, or otherwise guarantee any obligation or
liability of such an organization. This section shall not be
construed to imply that any such organization or any obligations or
securities 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
organization assisted under this section shall be used by the seller
for community development purposes.

82fe1c177e3f8795e0dca75e44430f45d04bcdddce5d6e1bd8608620148318b4

(a) Function of Administrator.--
(1) In general.--Of any funds appropriated pursuant to the
authorization in section 121(a), the funds made available for use
in carrying out this section in accordance with section 121(a)(4)
shall be administered by the Administrator of the Fund, in
consultation with--
(A) the Federal banking agencies (as defined in section 3
of the Federal Deposit Insurance Act) and the National Credit
Union Administration;
(B) the individuals named pursuant to clauses (ii) and (iv)
of section 104(d)(2)(G); and
(C) any other representatives of insured depository
institutions or other persons as the Administrator may
determine to be appropriate.
(2) Applicability of bank enterprise act of 1991.--Subject to
subsection (b) and the consultation requirement of paragraph (1)--
(A) section 233 of the Bank Enterprise Act of 1991 shall be
applicable to the Administrator, for purposes of this section,
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--
(i) have all powers and rights of the Community
Enterprise Assessment Credit Board under section 233 of the
Bank Enterprise 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 Community Enterprise Assessment
Credit Board; and
(C) the Administrator shall--
(i) have all powers and rights of an appropriate
Federal banking agency under section 233(b)(2) of the Bank
Enterprise Act of 1991 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 designation; and
(ii) shall be subject to the same duties imposed on the
appropriate Federal banking 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 regulations and issue such guidelines as the
Administrator 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, and any other
provision of the Federal Deposit Insurance Act relating to the Bank
Enterprise Act of 1991, do not apply to the Administrator for
purposes of this subtitle.
(b) Provisions Relating to Administration of ThisP Section.--
(1) New lifeline accounts.--In applying section 233 of the Bank
Enterprise Act of 1991 for purposes of this section, the
Administrator shall treat the provision of new lifeline accounts by
an insured 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 subtitle, section 233(a)(3) of the Bank Enterprise Act of 1991
(12 U.S.C. 1834a(a)(3)) shall be applied by substituting the
following text:
``(3) Amount of assessment credit.--The amount of an assessment
credit which may be awarded to an insured depository institution to
carry out the qualified activities of the institution or of the
subsidiaries of the institution 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 institution;
or
``(ii) 15 percent of the sum of the amounts determined
under such subparagraph, in the case of an institution
which is a community development financial institution; and
``(B) with respect to qualifying activities described in
paragraph (2)(C), 15 percent of the amounts determined under
such subparagraph.''.
(3) Adjustment of percentage.--Section 233(a)(5) of the Bank
Enterprise Act of 1991 shall be applied for purposes of this
section by--
(A) substituting ``institutions which are community
development financial institutions'' for ``institutions which
meet the community development organization requirements under
section 234''; and
(B) substituting ``institutions which are not community
development financial institutions'' for ``institutions which
do not meet such requirements''.
(4) Designation of qdc.--Section 233(b)(2) of the Bank
Enterprise Act of 1991 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
Administrator's discretion, apply section 233 of the Bank
Enterprise Act of 1991 for purposes of this section by providing
community enterprise assessment credits with respect to annual
periods rather than semiannual periods.
(6) Outreach.--The Administrator shall ensure that information
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 subtitle,
section 233(a)(2)(A) of the Bank Enterprise Act of 1991 shall be
applied by inserting ``of the increase'' after ``the amount''.
(c) Technical and Conforming Amendments to the Bank Enterprise Act
of 1991.--
(1) Assistance to cdfi may be taken into account as qualifying
activity.--Section 233(a)(2) of the Bank Enterprise Act of 1991 (12
U.S.C. 1834a(a)(2)) is amended--
(A) in the material preceding subparagraph (A), by striking
``shall be eligible'' and inserting ``may apply for'';
(B) in subparagraph (A), by striking ``financial
assistance'' and inserting ``assistance'';
(C) by striking ``and'' at the end of subparagraph (A);
(D) by striking the period at the end of subparagraph (B)
and inserting ``; and''; and
(E) by adding at the end the following new subparagraph:
``(C) any increase during the period in the amount of new
equity investments in community development financial
institutions.''.
(2) Additional assistance which may be considered as qualifying
activities.--Section 233(a)(4) of the Bank Enterprise Act of 1991
(12 U.S.C. 1834a(a)(4)) is amended--
(A) in the material preceding subparagraph (A), by striking
``financial''; and
(B) by adding at the end the following new subparagraphs:
``(L) Loans made for the purpose of developing or
supporting--
``(i) commercial facilities that enhance
revitalization, community stability, or job creation and
retention efforts;
``(ii) business creation and expansion efforts that--
``(I) create or retain jobs for low-income people;
``(II) enhance the availability of products and
services to low-income people; or
``(III) create or retain businesses owned by low-
income people or residents of a targeted area;
``(iii) community facilities that provide benefits to
low-income people or enhance community stability;
``(iv) home ownership opportunities that are affordable
to low-income households;
``(v) rental housing that is principally affordable to
low-income households; and
``(vi) other activities deemed appropriate by the
Board.
``(M) The provision of technical assistance to residents of
qualified distressed communities in managing their personal
finances through consumer education programs either sponsored
or offered by insured depository institutions.
``(N) The provision of technical assistance and consulting
services to newly formed small businesses located in qualified
distressed communities.
``(O) The provision of technical assistance to, or
servicing the loans of low- or moderate-income homeowners and
homeowners located in qualified distressed communities.''.
(3) Restriction on adjustment of percentages.--Section
233(a)(5) of the Bank Enterprise Act of 1991 (12 U.S.C.
1834a(a)(5)) is amended by striking ``paragraph (3)'' and inserting
``paragraph (3)(A)''.
(4) Credit limited to originations by institutions.--Section
233(a)(6) of the Bank Enterprise Act of 1991 (12 U.S.C.
1834a(a)(6)) is amended by striking ``Investments by any insured
depository institution in loans and securities'' and inserting
``Loans, financial assistance, and equity investments made by any
insured depository institution''.
(5) Quantitative analysis of technical assistance.--Section
233(a) of the Bank Enterprise Act of 1991 (12 U.S.C. 1834a(a)) is
amended by adding at the end the following new paragraph:
``(7) Quantitative analysis of technical assistance.--The Board
may establish guidelines for analyzing the technical assistance
described in subparagraphs (M), (N), and (O) of paragraph (4) for
the purpose of quantifying the results of such assistance in
determining the amount of any community assessment credit under
this subsection.''.
(6) Prohibition on double funding for same activities.--Section
233 of the Bank Enterprise Act of 1991 (12 U.S.C. 1834a) is
amended--
(A) by redesignating subsection (g) as subsection (j); and
(B) by inserting after subsection (f) the following new
subsection:
``(g) Prohibition on Double Funding for Same Activities.--No
community development financial institution may receive a community
enterprise assessment credit if such institution, either directly or
through a community partnership--
``(1) has received assistance within the preceding 12-month
period, or has an application for assistance pending, under section
105 of the Community Development Banking and Financial Institutions
Act of 1994; or
``(2) has ever received assistance, under section 108 of the
Community Development Banking and Financial Institutions Act of
1994, for the same activity during the same semiannual period for
which the institution seeks a community enterprise assessment
credit under this section.''.
(7) Additional administrative requirements.--Section 233 of the
Bank Enterprise Act of 1991 (12 U.S.C. 1834a) is amended by
inserting after subsection (g) (as added by paragraph (6) of this
subsection) the following new subsections:
``(h) Priority of Awards.--
``(1) Qualifying loans and services.--
``(A) In general.--If the amount of funds appropriated for
purposes of carrying out this section for any fiscal year are
insufficient to award the amount of assessment credits for
which insured depository institutions have applied and are
eligible under this section, the Board shall, in awarding
community enterprise assessment credits for qualifying
activities under subparagraphs (A) and (B) of subsection (a)(2)
for any semiannual period for which such appropriation is
available, determine which institutions shall receive an award.
``(B) Priority for support of efforts of cdfi.--The Board
shall give priority to institutions that have supported the
efforts of community development financial institutions in the
qualified distressed community.
``(C) Other factors.--The Board may also consider the
following factors:
``(i) Degree of difficulty.--The degree of difficulty
in carrying out the activities that form the basis for the
institution's application.
``(ii) Community impact.--The extent to which the
activities that form the basis for the institution's
application have benefited the qualified distressed
community.
``(iii) Innovation.--The degree to which the activities
that form the basis for the institution's application have
incorporated innovative methods for meeting community
needs.
``(iv) Leverage.--The leverage ratio between the dollar
amount of the activities that form the basis for the
institution's application and the amount of the assessment
credit calculated in accordance with this section for such
activities.
``(v) Size.--The amount of total assets of the
institution.
``(vi) New entry.--Whether the institution had provided
financial services in the designated distressed community
before such semiannual period.
``(vii) Need for subsidy.--The degree to which the
qualified activity which forms the basis for the
application needs enhancement through an assessment credit.
``(viii) Extent of distress in community.--The degree
of poverty and unemployment in the designated distressed
community, the proportion of the total population of the
community which are low-income families and unrelated
individuals, and the extent of other adverse economic
conditions in such community.
``(2) Qualifying investments.--If the amount of funds
appropriated for purposes of carrying out this section for any
fiscal year are insufficient to award the amount of assessment
credits for which insured depository institutions have applied and
are eligible under this section, the Board shall, in awarding
community enterprise assessment credits for qualifying activities
under subsection (a)(2)(C) for any semiannual period for which such
appropriation is available, determine which institutions shall
receive an award based on the leverage ratio between the dollar
amount of the activities that form the basis for the institution's
application and the amount of the assessment credit calculated in
accordance with this section for suchP activities.
``(i) Determination of Amount of Assessment Credit.--
Notwithstanding any other provision of this section, the determination
of the amount of any community enterprise assessment credit under
subsection (a)(3) for any insured depository institution for any
semiannual period shall be made solely at the discretion of the Board.
No insured depository institution shall be awarded community enterprise
assessment credits for any semiannual period in excess of an amount
determined by the Board.''.
(8) Additional definitions.--Subsection (j) of section 233 of
the Bank Enterprise Act of 1991 (as redesignated by paragraph (6)
of this subsection) is amended by adding at the end the following
new paragraphs:
``(4) Community development financial institution.--The term
`community development financial institution' has the same meaning
as in section 103(5) of the Community Development Banking and
Financial Institutions Act of 1994.
``(5) Affiliate.--The term `affiliate' has the same meaning as
in section 2 of the Bank Holding Company Act of 1956.''.

344acd0df7a63b3466ecbe92f622ee64fbdaf13650a0eab2e941771e0cbe8847

(a) In General.--A community development financial institution
receiving assistance from the Fund shall keep such records, for such
periods as may be prescribed by the Fund and necessary to disclose the
manner in which any assistance under this subtitle is used and to
demonstrate compliance with the requirements of this subtitle.
(b) User Profile Information.--The Fund shall require each
community development financial institution or other organization
receiving assistance from the Fund to compile such data, as is
determined to be appropriate by the Fund, on the gender, race,
ethnicity, national origin, or other pertinent information concerning
individuals that utilize the services of the assisted institution to
ensure that targeted populations and low-income residents of investment
areas are adequately served.
(c) Access to Records.--The Fund shall have access on demand, for
the purpose of determining compliance with this subtitle, to any
records of a community development financial institution or other
organization that receives assistance from the Fund.
(d) Review.--Not less than annually, the Fund shall review the
progress of each assisted community development financial institution
in carrying out its strategic plan, meeting its performance goals, and
satisfying the terms and conditions of its assistance agreement.
(e) Reporting.--
(1) Annual reports.--The Fund shall require each community
development financial institution receiving assistance under this
subtitle to submit an annual report to the Fund on its activities,
its financial condition, and its success in meeting performance
goals, in satisfying the terms and conditions of its assistance
agreement, and in complying with other requirements of this
subtitle, in such form and manner as the Fund shall specify.
(2) Availability of reports.--The Fund, after deleting or
redacting any material as appropriate to protect privacy or
proprietary interests, shall make such reports submitted under
paragraph (1) available for public inspection.

d269e84952f69d68cb7e3805bccd70c55da43047bc002924f19d570daa8dc1ea

SUPERVISED BY FEDERAL BANKING AGENCIES.
(a) Consultation With Appropriate Agencies.--The Fund shall consult
with and consider the views of the appropriate Federal banking agency
prior to providing assistance under this subtitle to--
(1) an insured community development financial institution;
(2) any community development financial institution that is
examined by or subject to the reporting requirements of an
appropriate Federal banking agency; or
(3) any community development financial institution that has as
its community partner an institution that is examined by or subject
to the reporting requirements of an appropriate Federal banking
agency.
(b) Requests for Information, Reports, or Records.--
(1) In general.--Except as provided in paragraph (4),
notwithstanding any other provisions of this subtitle, prior to
directly requesting information from or imposing reporting or
recordkeeping requirements on an insured community development
financial institution or other institution that is examined by or
subject to the reporting requirements of an appropriate Federal
banking agency, the Fund shall consult with the appropriate Federal
banking agency to determine if the information requested is
available from or may be obtained by such agency in the form,
format, or detail required by the Fund.
(2) Timing of response from appropriate federal banking
agency.--If the information, reports, or records requested by the
Fund pursuant to paragraph (1) are not provided by the appropriate
Federal banking agency in less than 15 calendar days after the date
on which the material is requested, the Fund may request the
information from or impose the recordkeeping or reporting
requirements directly on such institutions with notice to the
appropriate Federal banking agency.
(3) Elimination of duplicative information and reporting
requirements.--The Fund shall use any information provided the
appropriate Federal banking agency under this Psection to the
extent practicable to eliminate duplicative requests for
information and reports from, and recordkeeping by an insured
community development financial institution or other institution
that is examined by or subject to the reporting requirements of an
appropriate Federal banking agency.
(4) Exception.--Notwithstanding paragraphs (1) and (2), the
Fund may require an insured community development financial
institution or other institution that is examined by or subject to
the reporting requirements of an appropriate Federal banking agency
to provide information with respect to the institution's
implementation of its strategic plan or compliance with the terms
of its assistance agreement under this subtitle, after providing
notice to the appropriate Federal banking agency.
(c) Exclusion for Examination Reports.--Nothing in this section
shall be construed to permit the Fund to require an insured community
development financial institution or other institution that is examined
by or subject to the reporting requirements of an appropriate Federal
banking agency, to obtain, maintain, or furnish an examination report
of any appropriate Federal banking agency or records contained in or
related to such a report.
(d) Sharing of Information.--The Fund and the appropriate Federal
banking agency shall promptly notify each other of material concerns
about an insured community development financial institution or other
institution that is examined by or subject to the reporting
requirements of an appropriate Federal banking agency, and share
appropriate information relating to such concerns.
(e) Disclosure Prohibited.--Neither the Fund nor the appropriate
Federal banking agency shall disclose confidential information obtained
pursuant to this section from any party without the written consent of
that party.
(f) Privilege Maintained.--The Fund, the appropriate Federal
banking agency, and any other party providing information under this
section shall not be deemed to have waived any privilege applicable to
any information or data, or any portion thereof, by providing such
information or data to the other party or by permitting such data or
information, or any copies or portions thereof, to be used by the other
party.
(g) Exceptions.--Nothing in this section shall authorize the Fund
or the appropriate Federal banking agency to withhold information from
the Congress or prevent it from complying with a request for
information from a Federal department or agency in compliance with
applicable law.
(h) Sanctions.--
(1) Notification.--The Fund shall notify the appropriate
Federal banking agency before imposing any sanction pursuant to the
authority in section 108(f)(2)(C) on an insured community
development financial institution or other institution that is
examined by or subject to the reporting requirements of that
agency.
(2) Exceptions.--The Fund shall not impose a sanction referred
to in paragraph (1) if the appropriate Federal banking agency, in
writing, not later than 30 calendar days after receiving notice
from the Fund--
(A) objects to the proposed sanction;
(B) determines that the sanction would--
(i) have a material adverse effect on the safety and
soundness of the institution; or
(ii) impede or interfere with an enforcement action
against that institution by that agency;
(C) proposes a comparable alternative action; and
(D) specifically explains--
(i) the basis for the determination under subparagraph
(B) and, if appropriate, provides documentation to support
the determination; and
(ii) how the alternative action suggested pursuant to
subparagraph (C) would be as effective as the sanction
proposed by the Fund in securing compliance with this
subtitle and deterring future noncompliance.
(i) Safety and Soundness Considerations.--The Fund and each
appropriate Federal banking agency shall cooperate and respond to
requests from each other and from other appropriate Federal banking
agencies in a manner that ensures the safety and soundness of the
insured community development financial institution or other
institution that is examined by or subject to the reporting
requirements of an appropriate Federal banking agency.

c1ad338d4ff78f099869ab0dc04e28f57cc4ecee1501e2b15feff5d74422d87c

(a) Annual Report by the Fund.--The Fund shall conduct an annual
evaluation of the activities carried out by the Fund and the community
development financial institutions and other organizations assisted
pursuant to this subtitle, and shall submit a report of its findings to
the President and the Congress not later than 120 days after the end of
each fiscal year of the Fund. The report shall include financial
statements audited in accordance with subsection (f).
(b) Optional Studies.--The Fund may conduct such studies as the
Fund determines necessary to further the purpose of this subtitle and
to facilitate investment in distressed communities. The findings of any
studies conducted pursuant to this subsection shall be included in the
report required by subsection (a).
(c) Native American Lending Study.--
(1) In general.--The Fund shall conduct a study on lending and
investment practices on Indian reservations and other land held in
trust by the United States. Such study shall--
(A) identify barriers to private financing on such lands;
and
(B) identify the impact of such barriers on access to
capital and credit for Native American populations.
(2) Report.--Not later than 12 months after the date on which
the Administrator is appointed, the Fund shall submit a report to
the President and the Congress that--
(A) contains the findings of the study conducted under
paragraph (1);
(B) recommends any necessary statutory and regulatory
changes to existing Federal programs; and
(C) makes policy recommendations for community development
financial institutions, insured depository institutions,
secondary market institutions, and other private sector capital
institutions to better serve suchP populations.
(d) Investment, Governance, and Role of Fund.--Thirty months after
the appointment and qualification of the Administrator, the Comptroller
General of the United States shall submit to the President and the
Congress a study evaluating the structure, governance, and performance
of the Fund.
(e) Consultation.--In the conduct of the studies required under
this section, the Fund shall consult, as appropriate, with the
Comptroller of the Currency, the Federal Deposit Insurance Corporation,
the Board of Governors of the Federal Reserve System, the Federal
Housing Finance Board, the Farm Credit Administration, the Director of
the Office of Thrift Supervision, the National Credit Union
Administration Board, Indian tribal governments, community reinvestment
organizations, civil rights organizations, consumer organizations,
financial organizations, and such representatives of agencies or other
persons, at the discretion of the Fund.
(f) Examination and Audit.--The financial statements of the Fund
shall be audited in accordance with section 9105 of title 31, United
States Code, except that audits required by section 9105(a) of such
title shall be performed annually.

f28e8dd02236a2d644117bc4531bada284ddd6869d0f20a2fe525b887e5ba5cc

(a) Establishment.--Section 11 of the Inspector General Act of 1978
(5 U.S.C. App. 11) is amended--
(1) in paragraph (1), by inserting ``; the Administrator of the
Community Development Financial Institutions Fund;'' before ``and
the chief''; and
(2) in paragraph (2), by inserting ``the Community Development
Financial Institutions Fund,'' after ``the Agency for International
Development,''.
(b) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary for the operation of the
Office of Inspector General established by the amendments made by
subsection (a).

a861630eb614beb59ca7d77a674c87e4057981fb38414fa7a7731f05a0e6593f

(a) Regulations.--
(1) In general.--Not later than 180 days after the appointment
and qualification of the Administrator, the Fund shall promulgate
such regulations as may be necessary to carry out this subtitle.
(2) Regulations required.--The regulations promulgated under
paragraph (1) shall include regulations applicable to community
development financial institutions that are not insured depository
institutions to--
(A) prevent conflicts of interest on the part of directors,
officers, and employees of community development financial
institutions as the Fund determines to be appropriate; and
(B) establish such standards with respect to loans by a
community development financial institution to any director,
officer, or employee of such institution as the Fund determines
to be appropriate, including loan amountP limitations.
(b) Administrative Enforcement.--The provisions of this subtitle,
and regulations prescribed and agreements entered into under this
subtitle, shall be enforced under section 8 of the Federal Deposit
Insurance Act by the appropriate Federal banking agency, in the case of
an insured community development financial institution. A violation of
this subtitle, or any regulation prescribed under or any agreement
entered into under this subtitle, shall be treated as a violation of
the Federal Deposit Insurance Act.
(c) Criminal Provision.--Section 657 of title 18, United States
Code, is amended by inserting ``or any community development financial
institution receiving financial assistance under the Riegle Community
Development and Regulatory Improvement Act of 1994,'' after ``small
business investment company,''.

fa9f8bc7f763a14bc5fe3ebe53eb7a2e8bfcd51246b08d22d0a90883a9a8384d

UNIONS.
(a) Repeal.--Section 120 of the Federal Credit Union Act (12 U.S.C.
1766) is amended by striking subsection (k).
(b) Revolving Loan Fund.--The Federal Credit Union Act (12 U.S.C.
1751 et seq.) is amended by inserting after section 129 the following
new section:
``SEC. 130. COMMUNITY DEVELOPMENT REVOLVING LOAN FUND FOR CREDIT
UNIONS.
``(a) In General.--The Board may exercise the authority granted to
it by the Community Development Credit Union Revolving Loan Fund
Transfer Act, including any additional appropriation made or earnings
accrued, subject only to this section and to regulations prescribed by
the Board.
``(b) Investment.--The Board may invest any idle Fund moneys in
United States Treasury securities. Any interest accrued on such
securities shall become a part of the Fund.
``(c) Loans.--The Board may require that any loans made from the
Fund be matched by increased shares in the borrower credit union.
``(d) Interest.--Interest earned by the Fund may be allocated by
the Board for technical assistance to community development credit
unions, subject to an appropriations Act.
``(e) Definition.--As used in this section, the term `Fund' means
the Community Development Credit Union Revolving Loan Fund.''.

230c25399365bba614d4a6300c2de71dc87e7abe6bdfe11365631388f79ad436

(a) Fund Authorization.--
(1) In general.--To carry out this subtitle, there are
authorized to be appropriated to the Fund, to remain available
until expended--
(A) $60,000,000 for fiscal year 1995;
(B) $104,000,000 for fiscal year 1996;
(C) $107,000,000 for fiscal year 1997; and
(D) $111,000,000 for fiscal year 1998;
or such greater sums as may be necessary to carry out this
subtitle.
(2) Administrative expenses.--
(A) In general.--Of amounts authorized to be appropriated
to the Fund pursuant to this section, not more than $5,550,000
may be used by the Fund in each fiscal year to pay the
administrative costs and expenses of the Fund. Costs associated
with the training program established under section 109 and the
technical assistance program established under section 108
shall not be considered to be administrative expenses for
purposes of thisP paragraph.
(B) Calculations.--The amounts referred to in paragraphs
(3) and (4) shall be calculated after subtracting the amount
referred to in subparagraph (A) of this paragraph from the
total amount appropriated to the Fund in accordance with
paragraph (1) in any fiscal year.
(3) Capitalization assistance.--Not more than 5 percent of the
amounts authorized to be appropriated under paragraph (1) may be
used as provided in section 113.
(4) Availability for funding section 114.--33\1/3\ percent of
the amounts appropriated to the Fund for any fiscal year pursuant
to the authorization in paragraph (1) shall be available for use in
carrying out section 114.
(5) Support of community development financial institutions.--
The Administrator shall allocate funds authorized under this
section, to the maximum extent practicable, for the support of
community development financialP institutions.
(b) Community Development Credit Union Revolving Loan Fund.--There
are authorized to be appropriated for the purposes of the Community
Development Credit Union Revolving Loan Fund--
(1) $4,000,000 for fiscal year 1995;
(2) $2,000,000 for fiscal year 1996;
(3) $2,000,000 for fiscal year 1997; and
(4) $2,000,000 for fiscal year 1998.
(c) Budgetary Treatment.--Amounts authorized to be appropriated
under this section shall be subject to discretionary spending caps, as
provided in section 601 of the Congressional Budget Act of 1974, and
therefore shall reduce by an equal amount funds made available for
other discretionary spending programs.
Subtitle B--Home Ownership and Equity Protection

e8982fb83438c05027da0fb2d6211c9c8b08b7cafbd215818eda74af00367677

This subtitle may be cited as the ``Home Ownership and Equity
Protection Act of 1994''.

e641fc137df5c41938c0c706f2cf01bd5b8627c57357ef89396a40ca71833e26

(a) Mortgage Definition.--Section 103 of the Truth in Lending Act
(15 U.S.C. 1602) is amended by adding at the end the following new
subsection:
``(aa)(1) A mortgage referred to in this subsection means a
consumer credit transaction that is secured by the consumer's principal
dwelling, other than a residential mortgage transaction, a reverse
mortgage transaction, or a transaction under an open end credit plan,
if--
``(A) the annual percentage rate at consummation of the
transaction will exceed by more than 10 percentage points the yield
on Treasury securities having comparable periods of maturity on the
fifteenth day of the month immediately preceding the month in which
the application for the extension of credit is received by the
creditor; or
``(B) the total points and fees payable by the consumer at or
before closing will exceed the greater of--
``(i) 8 percent of the total loan amount; or
``(ii) $400.
``(2)(A) After the 2-year period beginning on the effective date of
the regulations promulgated under section 155 of the Riegle Community
Development and Regulatory Improvement Act of 1994, and no more
frequently than biennially after the first increase or decrease under
this subparagraph, the Board may by regulation increase or decrease the
number of percentage points specified in paragraph (1)(A), if the Board
determines that the increase or decrease is--
``(i) consistent with the consumer protections against abusive
lending provided by the amendments made by subtitle B of title I of
the Riegle Community Development and Regulatory Improvement Act of
1994; and
``(ii) warranted by the need for credit.
``(B) An increase or decrease under subparagraph (A) may not result
in the number of percentage points referred to in subparagraph (A)
being--
``(i) less that 8 percentage points; or
``(ii) greater than 12 percentage points.
``(C) In determining whether to increase or decrease the number of
percentage points referred to in subparagraph (A), the Board shall
consult with representatives of consumers, including low-income
consumers, and lenders.
``(3) The amount specified in paragraph (1)(B)(ii) shall be
adjusted annually on January 1 by the annual percentage change in the
Consumer Price Index, as reported on June 1 of the year preceding such
adjustment.
``(4) For purposes of paragraph (1)(B), points and fees shall
include--
``(A) all items included in the finance charge, except interest
or the time-price differential;
``(B) all compensation paid to mortgage brokers;
``(C) each of the charges listed in section 106(e) (except an
escrow for future payment of taxes), unless--
``(i) the charge is reasonable;
``(ii) the creditor receives no direct or indirect
compensation; and
``(iii) the charge is paid to a third party unaffiliated
with the creditor; and
``(D) such other charges as the Board determines to be
appropriate.
``(5) This subsection shall not be construed to limit the rate of
interest or the finance charge that a person may charge a consumer for
any extension of credit.''.
(b) Material Disclosures.--Section 103(u) of the Truth in Lending
Act (15 U.S.C. 1602(u)) is amended--
(1) by striking ``and the due dates'' and inserting ``the due
dates''; and
(2) by inserting before the period ``, and the disclosures
required by section 129(a)''.
(c) Definition of Creditor Clarified.--Section 103(f) of the Truth
in Lending Act (15 U.S.C. 1602(f)) is amended by adding at the end the
following: ``Any person who originates 2 or more mortgages referred to
in subsection (aa) in any 12-month period or any person who originates
1 or more such mortgages through a mortgage broker shall be considered
to be a creditor for purposes of this title.''.
(d) Disclosures Required and Certain Terms Prohibited.--The Truth
in Lending Act (15 U.S.C. 1601 et seq.) is amended by inserting after
section 128 the following new section:
``SEC. 129. REQUIREMENTS FOR CERTAIN MORTGAGES.
``(a) Disclosures.--
``(1) Specific disclosures.--In addition to other disclosures
required under this title, for each mortgage referred to in section
103(aa), the creditor shall provide the following disclosures in
conspicuous type size:
``(A) `You are not required to complete this agreement
merely because you have received these disclosures or have
signed a loan application.'.
``(B) `If you obtain this loan, the lender will have a
mortgage on your home. You could lose your home, and any money
you have put into it, if you do not meet your obligations under
the loan.'.
``(2) Annual percentage rate.--In addition to the disclosures
required under paragraph (1), the creditor shall disclose--
``(A) in the case of a credit transaction with a fixed rate
of interest, the annual percentage rate and the amount of the
regular monthly payment; or
``(B) in the case of any other credit transaction, the
annual percentage rate of the loan, the amount of the regular
monthly payment, a statement that the interest rate and monthly
payment may increase, and the amount of the maximum monthly
payment, based on the maximum interest rate allowed pursuant to
section 1204 of the Competitive Equality Banking Act of 1987.
``(b) Time of Disclosures.--
``(1) In general.--The disclosures required by this section
shall be given not less than 3 business days prior to consummation
of the transaction.
``(2) New disclosures required.--
``(A) In general.--After providing the disclosures required
by this section, a creditor may not change the terms of the
extension of credit if such changes make the disclosures
inaccurate, unless new disclosures are provided that meet the
requirements of this section.
``(B) Telephone disclosure.--A creditor may provide new
disclosures pursuant to subparagraph (A) by telephone, if--
``(i) the change is initiated by the consumer; and
``(ii) at the consummation of the transaction under
which the credit is extended--
``(I) the creditor provides to the consumer the new
disclosures, in writing; and
``(II) the creditor and consumer certify in writing
that the new disclosures were provided by telephone, by
not later than 3 days prior to the date of consummation
of the transaction.
``(3) Modifications.--The Board may, if it finds that such
action is necessary to permit homeowners to meet bona fide personal
financial emergencies, prescribe regulations authorizing the
modification or waiver of rights created under this subsection, to
the extent and under the circumstances set forth in those
regulations.
``(c) No Prepayment Penalty.--
``(1) In general.--
``(A) Limitation on terms.--A mortgage referred to in
section 103(aa) may not contain terms under which a consumer
must pay a prepayment penalty for paying all or part of the
principal before the date on which the principal is due.
``(B) Construction.--For purposes of this subsection, any
method of computing a refund of unearned scheduled interest is
a prepayment penalty if it is less favorable to the consumer
than the actuarial method (as that term is defined in section
933(d) of the Housing and Community Development Act of 1992).
``(2) Exception.--Notwithstanding paragraph (1), a mortgage
referred to in section 103(aa) may contain a prepayment penalty
(including terms calculating a refund by a method that is not
prohibited under section 933(b) of the Housing and Community
Development Act of 1992 for the transaction in question) if--
``(A) at the time the mortgage is consummated--
``(i) the consumer is not liable for an amount of
monthly indebtedness payments (including the amount of
credit extended or to be extended under the transaction)
that is greater than 50 percent of the monthly gross income
of the consumer; and
``(ii) the income and expenses of the consumer are
verified by a financial statement signed by the consumer,
by a credit report, and in the case of employment income,
by payment records or by verification from the employer of
the consumer (which verification may be in the form of a
copy of a pay stub or other payment record supplied by the
consumer);
``(B) the penalty applies only to a prepayment made with
amounts obtained by the consumer by means other than a
refinancing by the creditor under the mortgage, or an affiliate
of that creditor;
``(C) the penalty does not apply after the end of the 5-
year period beginning on the date on which the mortgage is
consummated; and
``(D) the penalty is not prohibited under other applicable
law.
``(d) Limitations After Default.--A mortgage referred to in section
103(aa) may not provide for an interest rate applicable after default
that is higher than the interest rate that applies before default. If
the date of maturity of a mortgage referred to in subsection 103(aa) is
accelerated due to default and the consumer is entitled to a rebate of
interest, that rebate shall be computed by any method that is not less
favorable than the actuarial method (as that term is defined in section
933(d) of the Housing and Community Development Act of 1992).
``(e) No Balloon Payments.--A mortgage referred to in section
103(aa) having a term of less than 5 years may not include terms under
which the aggregate amount of the regular periodic payments would not
fully amortize the outstanding principal balance.
``(f) No Negative Amortization.--A mortgage referred to in section
103(aa) may not include terms under which the outstanding principal
balance will increase at any time over the course of the loan because
the regular periodic payments do not cover the full amount of interest
due.
``(g) No Prepaid Payments.--A mortgage referred to in section
103(aa) may not include terms under which more than 2 periodic payments
required under the loan are consolidated and paid in advance from the
loan proceeds provided to the consumer.
``(h) Prohibition on Extending Credit Without Regard to Payment
Ability of Consumer.--A creditor shall not engage in a pattern or
practice of extending credit to consumers under mortgages referred to
in section 103(aa) based on the consumers' collateral without regard to
the consumers' repayment ability, including the consumers' current and
expected income, current obligations, and employment.
``(i) Requirements for Payments Under Home Improvement Contracts.--
A creditor shall not make a payment to a contractor under a home
improvement contract from amounts extended as credit under a mortgage
referred to in section 103(aa), other than--
``(1) in the form of an instrument that is payable to the
consumer or jointly to the consumer and the contractor; or
``(2) at the election of the consumer, by a third party escrow
agent in accordance with terms established in a written agreement
signed by the consumer, the creditor, and the contractor before the
date of payment.
``(j) Consequence of Failure To Comply.--Any mortgage that contains
a provision prohibited by this section shall be deemed a failure to
deliver the material disclosures required under this title, for the
purpose of section 125.
``(k) Definition.--For purposes of this section, the term
`affiliate' has the same meaning as in section 2(k) of the Bank Holding
Company Act of 1956.
``(l) Discretionary Regulatory Authority of Board.--
``(1) Exemptions.--The Board may, by regulation or order,
exempt specific mortgage products or categories of mortgages from
any or all of the prohibitions specified in subsections (c) through
(i), if the Board finds that the exemption--
``(A) is in the interest of the borrowing public; and
``(B) will apply only to products that maintain and
strengthen home ownership and equity protection.
``(2) Prohibitions.--The Board, by regulation or order, shall
prohibit acts or practices in connection with--
``(A) mortgage loans that the Board finds to be unfair,
deceptive, or designed to evade the provisions of this section;
and
``(B) refinancing of mortgage loans that the Board finds to
be associated with abusive lending practices, or that are
otherwise not in the interest of the borrower.''.
(e) Conforming Amendments.--
(1) Table of sections.--The table of sections at the beginning
of chapter 2 of the Truth in Lending Act is amended by striking the
item relating to section 129 and inserting the following:
``129. Requirements for certain mortgages.''.
(2) Truth in lending act.--The Truth in Lending Act (15 U.S.C.
1601 et seq.) is amended--
(A) in the second sentence of section 105(a), by striking
``These'' and inserting ``Except in the case of a mortgage
referred to in section 103(aa), these'';
(B) in section 111(a)(2), by inserting before the period
the following: ``, and such State-required disclosure may not
be made in lieu of the disclosures applicable to certain
mortgages under section 129''; and
(C) in section 111(b)--
(i) by striking ``This'' and inserting ``Except as
provided in section 129, this''; and
(ii) by adding at the end the following: ``The
provisions of section 129 do not annul, alter, or affect
the applicability of the laws of any State or exempt any
person subject to the provisions of section 129 from
complying with the laws of any State, with respect to the
requirements for mortgages referred to in section 103(aa),
except to the extent that those State laws are inconsistent
with any provisions of section 129, and then only to the
extent of the inconsistency.''.

f5d6a70e27167abf9d4da37cb736139047479e3d18844c6aaa3aec56b2d026f8

(a) Damages.--Section 130(a) of the Truth in Lending Act (15 U.S.C.
1640(a)) is amended--
(1) by striking ``and'' at the end of paragraph (2)(B);
(2) by striking the period at the end of paragraph (3) and
inserting ``; and''; and
(3) by inserting after paragraph (3) the following new
Pparagraph:
``(4) in the case of a failure to comply with any requirement
under section 129, an amount equal to the sum of all finance
charges and fees paid by the consumer, unless the creditor
demonstrates that the failure to comply is not material.''.
(b) State Attorney General Enforcement.--Section 130(e) of the
Truth in Lending Act (15 U.S.C. 1640(e)) is amended by adding at the
end the following: ``An action to enforce a violation of section 129
may also be brought by the appropriate State attorney general in any
appropriate United States district court, or any other court of
competent jurisdiction, not later than 3 years after the date on which
the violation occurs. The State attorney general shall provide prior
written notice of any such civil action to the Federal agency
responsible for enforcement under section 108 and shall provide the
agency with a copy of the complaint. If prior notice is not feasible,
the State attorney general shall provide notice to such agency
immediately upon instituting the action. The Federal agency may--
``(1) intervene in the action;
``(2) upon intervening--
``(A) remove the action to the appropriate United States
district court, if it was not originally brought there; and
``(B) be heard on all matters arising in the action; and
``(3) file a petition for appeal.''.
(c) Assignee Liability.--Section 131 of the Truth in Lending Act
(15 U.S.C. 1641) is amended by adding at the end the following new
subsection:
``(d) Rights Upon Assignment of Certain Mortgages.--
``(1) In general.--Any person who purchases or is otherwise
assigned a mortgage referred to in section 103(aa) shall be subject
to all claims and defenses with respect to that mortgage that the
consumer could assert against the creditor of the mortgage, unless
the purchaser or assignee demonstrates, by a preponderance of the
evidence, that a reasonable person exercising ordinary due
diligence, could not determine, based on the documentation required
by this title, the itemization of the amount financed, and other
disclosure of disbursements that the mortgage was a mortgage
referred to in section 103(aa). The preceding sentence does not
affect rights of a consumer under subsection (a), (b), or (c) of
this section or any other provision of this title.
``(2) Limitation on damages.--Notwithstanding any other
provision of law, relief provided as a result of any action made
permissible by paragraph (1) may not exceed--
``(A) with respect to actions based upon a violation of
this title, the amount specified in section 130; and
``(B) with respect to all other causes of action, the sum
of--
``(i) the amount of all remaining indebtedness; and
``(ii) the total amount paid by the consumer in
connection with the transaction.
``(3) Offset.--The amount of damages that may be awarded under
paragraph (2)(B) shall be reduced by the amount of any damages
awarded under paragraph (2)(A).
``(4) Notice.--Any person who sells or otherwise assigns a
mortgage referred to in section 103(aa) shall include a prominent
notice of the potential liability under this subsection as
determined by the Board.''.

2a3143188d2dbb9a5f0d03ac8413a7bc0e3659dcbbc56e11b023b1d8c9ac1ee6

(a) Definition of Reverse Mortgage.--Section 103 of the Truth in
Lending Act (15 U.S.C. 1602) is amended by adding at the end the
following new subsection:
``(bb) The term `reverse mortgage transaction' means a nonrecourse
transaction in which a mortgage, deed of trust, or equivalent
consensual security interest is created against the consumer's
principal dwelling--
``(1) securing one or more advances; and
``(2) with respect to which the payment of any principal,
interest, and shared appreciation or equity is due and payable
(other than in the case of default) only after--
``(A) the transfer of the dwelling;
``(B) the consumer ceases to occupy the dwelling as a
principal dwelling; or
``(C) the death of the consumer.''.
(b) Disclosure.--Chapter 2 of title I of the Truth in Lending Act
(15 U.S.C. 1631 et seq.) is amended by adding at the end the following
new section:
``SEC. 138. REVERSE MORTGAGES.
``(a) In General.--In addition to the disclosures required under
this title, for each reverse mortgage, the creditor shall, not less
than 3 days prior to consummation of the transaction, disclose to the
consumer in conspicuous type a good faith estimate of the projected
total cost of the mortgage to the consumer expressed as a table of
annual interest rates. Each annual interest rate shall be based on a
projected total future credit extension balance under a projected
appreciation rate for the dwelling and a term for the mortgage. The
disclosure shall include--
``(1) statements of the annual interest rates for not less than
3 projected appreciation rates and not less than 3 credit
transaction periods, as determined by the Board, including--
``(A) a short-term reverse mortgage;
``(B) a term equaling the actuarial life expectancy of the
consumer; and
``(C) such longer term as the Board deems appropriate; and
``(2) a statement that the consumer is not obligated to
complete the reverse mortgage transaction merely because the
consumer has received the disclosure required under this section or
has signed an application for the reverse mortgage.
``(b) Projected Total Cost.--In determining the projected total
cost of the mortgage to be disclosed to the consumer under subsection
(a), the creditor shall take into account--
``(1) any shared appreciation or equity that the lender will,
by contract, be entitled to receive;
``(2) all costs and charges to the consumer, including the
costs of any associated annuity that the consumer elects or is
required to purchase as part of the reverse mortgage transaction;
``(3) all payments to and for the benefit of the consumer,
including, in the case in which an associated annuity is purchased
(whether or not required by the lender as a condition of making the
reverse mortgage), the annuity payments received by the consumer
and financed from the proceeds of the loan, instead of the proceeds
used to finance the annuity; and
``(4) any limitation on the liability of the consumer under
reverse mortgage transactions (such as nonrecourse limits and
equity conservation agreements).''.
(c) Home Equity Plan Exemption.--Section 137(b) of the Truth in
Lending Act (15 U.S.C. 1647(b)) is amended by adding at the end the
following:
``This subsection does not apply to reverse mortgage transactions.''.
(d) Table of Sections.--The table of sections at the beginning of
chapter 2 of the Truth in Lending Act is amended by inserting after the
item relating to section 137 the following:
``138. Reverse mortgages.''.

358cc2f307cbc69a732c156ca1f4a6951da0ac436a1bb925ce5c88c5904768a3

Not later than 180 days after the date of enactment of this Act,
the Board of Governors of the Federal Reserve System shall issue such
regulations as may be necessary to carry out this subtitle, and such
regulations shall become effective on the date on which disclosure
regulations are required to become effective under section 105(d) of
the Truth in Lending Act.

7b5b00d81f1f47d13694869a73528c4c15b9cd3c4297f4cba6170d057ae2b666

This subtitle, and the amendments made by this subtitle, shall
apply to every mortgage referred to in section 103(aa) of the Truth in
Lending Act (as added by section 152(a) of this Act) consummated on or
after the date on which regulations issued under section 155 become
effective.

65a605914d8a518e3e5df0e848720ec9dca66eff30742d0728937bcd39b8844f

During the period beginning 180 days after the date of enactment of
this Act and ending 2 years after that date of enactment, the Board of
Governors of the Federal Reserve System shall conduct a study and
submit to the Congress a report, including recommendations for any
appropriate legislation, regarding--
(1) whether a consumer engaging in an open end credit
transaction (as defined in section 103 of the Truth in Lending Act)
secured by the consumer's principal dwelling is provided adequate
protections under Federal law, including section 127A of the Truth
in Lending Act; and
(2) whether a more appropriate interest rate index exists for
purposes of subparagraph (A) of section 103(aa)(1) of the Truth in
Lending Act (as added by section 152(a) of this Act) than the yield
on Treasury securities referred to in that subparagraph.

3237e51cbb186efc2094c142f9b185c7b702d2637b5ac99d55237e5c83148927

(a) Hearings.--Not less than once during the 3-year period
beginning on the date of enactment of this Act, and regularly
thereafter, the Board of Governors of the Federal Reserve System, in
consultation with the Consumer Advisory Council of the Board, shall
conduct a public hearing to examine the home equity loan market and the
adequacy of existing regulatory and legislative provisions and the
provisions of this subtitle in protecting the interests of consumers,
and low-income consumers in particular.
(b) Participation.--In conducting hearings required by subsection
(a), the Board of Governors of the Federal Reserve System shall solicit
participation from consumers, representatives of consumers, lenders,
and other interested parties.
Subtitle A--Small Business Loan Securitization

b43076eb1ba21938c84ce161a4c77128110f8238b0f7fef82f95d4398b638c5d

This subtitle may be cited as the ``Small Business Loan
Securitization and Secondary Market Enhancement Act of 1994''.

33ee2c0737522ebfb4897b90954102cceccc33b587204f57ceec1a9e1fee012b

Section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)) is amended by adding at the end the following newP paragraph:
``(53)(A) The term `small business related security' means a
security that is rated in 1 of the 4 highest rating categories by
at least 1 nationally recognized statistical rating organization,
and either--
``(i) represents an interest in 1 or more promissory notes
or leases of personal property evidencing the obligation of a
small business concern and originated by an insured depository
institution, insured credit union, insurance company, or
similar institution which is supervised and examined by a
Federal or State authority, or a finance company or leasing
company; or
``(ii) is secured by an interest in 1 or more promissory
notes or leases of personal property (with or without recourse
to the issuer or lessee) and provides for payments of principal
in relation to payments, or reasonable projections of payments,
on notes or leases described in clause (i).
``(B) For purposes of this paragraph--
``(i) an `interest in a promissory note or a lease of
personal property' includes ownership rights, certificates of
interest or participation in such notes or leases, and rights
designed to assure servicing of such notes or leases, or the
receipt or timely receipt of amounts payable under such notes
or leases;
``(ii) the term `small business concern' means a business
that meets the criteria for a small business concern
established by the Small Business Administration under section
3(a) of the Small Business Act;
``(iii) the term `insured depository institution' has the
same meaning as in section 3 of the Federal Deposit Insurance
Act; and
``(iv) the term `insured credit union' has the same meaning
as in section 101 of the Federal Credit Union Act.''.

bbdb31bd90533b62ecf43902408587727f40bd599605bc037598d766bc3e4837

Section 7(g) of the Securities Exchange Act of 1934 (15 U.S.C.
78g(g)) is amended by inserting ``or a small business related
security'' after ``mortgage related security''.

0c3c2b3d861175065e1f2ecbc44ea8a490e6e62d9eccd64eeee01390a5c41825

Section 8(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78h(a)) is amended in the last sentence by inserting ``or a small
business related security'' after ``mortgage related security''.

af0ed1ba3fe7725aabceebea37889803937ba3c097f4ce17dde87d4a3cf68b17

Clause (ii) of section 11(d)(1) of the Securities Exchange Act of
1934 (15 U.S.C. 78k(d)(1)) is amended by inserting ``or any small
business related security'' after ``mortgage related security''.

32f9810aa2a354ef8d954aa11a7a13e6027a1da5d48c291722907b1c9fa5e714

(a) Home Owners' Loan Act Amendment.--Section 5(c)(1) of the Home
Owners' Loan Act (12 U.S.C. 1464(c)(1)) is amended by adding at the end
the following new subparagraph:
``(S) Small business related securities.--Investments in
small business related securities (as defined in section
3(a)(53) of the Securities Exchange Act of 1934), subject to
such regulations as the Director may prescribe, including
regulations concerning the minimum size of the issue (at the
time of the initial distribution), the minimum aggregate sales
price, or both.''.
(b) Credit Unions.--Section 107(15) of the Federal Credit Union Act
(12 U.S.C. 1757(15)) is amended--
(1) in subparagraph (A), by striking ``or'' at the end;
(2) in subparagraph (B), by inserting ``or'' at the end; and
(3) by adding at the end the following new subparagraph:
``(C) are small business related securities (as defined in
section 3(a)(53) of the Securities Exchange Act of 1934),
subject to such regulations as the Board may prescribe,
including regulations prescribing the minimum size of the issue
(at the time of the initial distribution), the minimum
aggregate sales price, or both;''.
(c) National Banking Associations.--Section 5136 of the Revised
Statutes (12 U.S.C. 24) is amended in the last sentence in the first
full paragraph of paragraph Seventh, by striking ``or (B) are mortgage
related securities'' and inserting the following: ``(B) are small
business related securities (as defined in section 3(a)(53) of the
Securities Exchange Act of 1934); or (C) are mortgage related
securities''.

d28abc7e921f719c1ebe88481aad4dd84de9fdd2ee3187c58403031643be5dcc

(a) In General.--Section 106(a)(1) of the Secondary Mortgage Market
Enhancement Act of 1984 (15 U.S.C. 77r-1(a)(1)) isP amended--
(1) by striking ``or'' at the end of subparagraph (B);
(2) by redesignating subparagraph (C) as subparagraph (D); and
(3) by inserting after subparagraph (B) the following new
subparagraph:
``(C) small business related securities (as defined in
section 3(a)(53) of the Securities Exchange Act of 1934), or''.
(b) Obligations of the United States.--Section 106(a)(2) of the
Secondary Mortgage Market Enhancement Act of 1984 (15 U.S.C. 77r-
1(a)(2)) is amended--
(1) by striking ``or'' at the end of subparagraph (B);
(2) by redesignating subparagraph (C) as subparagraph (D); and
(3) by inserting after subparagraph (B) the following new
subparagraph:
``(C) small business related securities (as defined in
section 3(a)(53) of the Securities Exchange Act of 1934), or''.
(c) Preemption of State Laws.--Section 106(c) of the Secondary
Mortgage Market Enhancement Act of 1984 (15 U.S.C. 77r-1(c)) is
amended--
(1) in the first sentence, by striking ``or that'' and
inserting ``, that''; and
(2) by inserting ``, or that are small business related
securities (as defined in section 3(a)(53) of the Securities
Exchange Act of 1934)'' before ``shall be exempt''.
(d) Implementation.--Section 106 of the Secondary Mortgage Market
Enhancement Act of 1984 (15 U.S.C. 77r-1) is amended by adding at the
end the following new subsection:
``(d) Implementation.--
``(1) Limitation.--The provisions of subsections (a) and (b)
concerning small business related securities shall not apply with
respect to a particular person, trust, corporation, partnership,
association, business trust, or business entity or class thereof in
any State that, prior to the expiration of 7 years after the date
of enactment of this subsection, enacts a statute that specifically
refers to this section and either prohibits or provides for a more
limited authority to purchase, hold, or invest in such small
business related securities by any person, trust, corporation,
partnership, association, business trust, or business entity or
class thereof than is provided in this section. The enactment by
any State of any statute of the type described in the preceding
sentence shall not affect the validity of any contractual
commitment to purchase, hold, or invest that was made prior to such
enactment, and shall not require the sale or other disposition of
any small business related securities acquired prior to the date of
such enactment.
``(2) State registration or qualification requirements.--Any
State may, not later than 7 years after the date of enactment of
this subsection, enact a statute that specifically refers to this
section and requires registration or qualification of any small
business related securities on terms that differ from those
applicable to any obligation issued by the United States.''.

328265c7c82815641b779ffb2d2d8ab9b8becf4159131fb59b57e94034e5839e

TRANSFERS OF SMALL BUSINESS OBLIGATIONS.
(a) Accounting Principles.--The accounting principles applicable to
the transfer of a small business loan or a lease of personal property
with recourse contained in reports or statements required to be filed
with Federal banking agencies by a qualified insured depository
institution shall be consistent with generally accepted accounting
principles.
(b) Capital and Reserve Requirements.--With respect to the transfer
of a small business loan or lease of personal property with recourse
that is a sale under generally accepted accounting principles, each
qualified insured depository institution shall--
(1) establish and maintain a reserve equal to an amount
sufficient to meet the reasonable estimated liability of the
institution under the recourse arrangement; and
(2) include, for purposes of applicable capital standards and
other capital measures, only the amount of the retained recourse in
the risk-weighted assets of the institution.
(c) Qualified Institutions Criteria.--An insured depository
institution is a qualified insured depository institution for purposes
of this section if, without regard to the accounting principles or
capital requirements referred to in subsections (a) and (b), the
institution is--
(1) well capitalized; or
(2) with the approval, by regulation or order, of the
appropriate Federal banking agency, adequately capitalized.
(d) Aggregate Amount of Recourse.--The total outstanding amount of
recourse retained by a qualified insured depository institution with
respect to transfers of small business loans and leases of personal
property under subsections (a) and (b) shall not exceed--
(1) 15 percent of the risk-based capital of the institution; or
(2) such greater amount, as established by the appropriate
Federal banking agency by regulation or order.
(e) Institutions That Cease To Be Qualified or Exceed Aggregate
Limits.--If an insured depository institution ceases to be a qualified
insured depository institution or exceeds the limits under subsection
(d), this section shall remain applicable to any transfers of small
business loans or leases of personal property that occurred during the
time that the institution was qualified and did not exceed such limit.
(f) Prompt Corrective Action Not Affected.--The capital of an
insured depository institution shall be computed without regard to this
section in determining whether the institution is adequately
capitalized, undercapitalized, significantly undercapitalized, or
critically undercapitalized under section 38 of the Federal Deposit
Insurance Act.
(g) Regulations Required.--Not later than 180 days after the date
of enactment of this Act each appropriate Federal banking agency shall
promulgate final regulations implementing this section.
(h) Alternative System Permitted.--
(1) In general.--At the discretion of the appropriate Federal
banking agency, this section shall not apply if the regulations of
the agency provide that the aggregate amount of capital and
reserves required with respect to the transfer of small business
loans and leases of personal property with recourse does not exceed
the aggregate amount of capital and reserves that would be required
under subsection (b).
(2) Existing transactions not affected.--Notwithstanding
paragraph (1), this section shall remain in effect with respect to
transfers of small business loans and leases of personal property
with recourse by qualified insured depository institutions
occurring before the effective date of regulations referred to in
paragraph (1).
(i) Definitions.--For purposes of this section--
(1) the term ``adequately capitalized'' has the same meaning as
in section 38(b) of the Federal Deposit Insurance Act;
(2) the term ``appropriate Federal banking agency'' has the
same meaning as in section 3 of the Federal Deposit Insurance Act;
(3) the term ``capital standards'' has the same meaning as in
section 38(c) of the Federal Deposit Insurance Act;
(4) the term ``Federal banking agencies'' has the same meaning
as in section 3 of the Federal Deposit Insurance Act;
(5) the term ``insured depository institution'' has the same
meaning as in section 3 of the Federal Deposit Insurance Act;
(6) the term ``other capital measures'' has the meaning as in
section 38(c) of the Federal Deposit Insurance Act;
(7) the term ``recourse'' has the meaning given to such term
under generally accepted accounting principles;
(8) the term ``small business'' means a business that meets the
criteria for a small business concern established by the Small
Business Administration under section 3(a) of the Small Business
Act; and
(9) the term ``well capitalized'' has the same meaning as in
section 38(b) of the Federal Deposit Insurance Act.

83d3bfc7ea5ce96bb218bf52c2b6825a2974776dfdc82a990ccff6267caa2790

ON POOLED OBLIGATIONS.
(a) Joint Study Required.--The Board and the Commission shall
conduct a joint study of the impact of the provisions of this subtitle
(including the amendments made by this subtitle) on the credit and
securities markets. Such study shall evaluate--
(1) the impact of the provisions of this subtitle on the
availability of credit for business and commercial enterprises in
general, and the availability of credit in particular for--
(A) businesses in low- and moderate-income areas;
(B) businesses owned by women and minorities;
(C) community development efforts;
(D) community development financial institutions;
(E) businesses in different geographical regions; and
(F) a diversity of types of businesses;
(2) the structure and operation of the markets that develop for
small business related securities and commercial mortgage related
securities, including the types of entities (such as pension funds
and insurance companies) that are significant purchasers of such
securities, the extent to which such entities are sophisticated
investors, the use of credit enhancements in obtaining investment-
grade ratings, any conflicts of interest that arise in such
markets, and any adverse effects of such markets on commercial real
estate ventures, pension funds, or pension fund beneficiaries;
(3) the extent to which the provisions of this subtitle with
regard to margin requirements, the number of eligible investment
rating categories, preemption of State law, and the treatment of
such securities as government securities for the purpose of State
investment limitations, affect the structure and operation of such
markets; and
(4) in view of the findings made pursuant to paragraphs (2) and
(3), any additional suitability or disclosure requirements or other
investor protections that should be required.
(b) Reports.--
(1) In general.--The Board and the Commission shall submit to
the Congress a report on the results of the study required by
subsection (a) before the end of--
(A) the 2-year period beginning on the date of enactment of
this Act;
(B) the 4-year period beginning on such date of enactment;
and
(C) the 6-year period beginning on such date ofP enactment.
(2) Contents of report.--Each report required under paragraph
(1) shall contain or be accompanied by such recommendations for
administrative or legislative action as the Board and the
Commission consider appropriate and may include recommendations
regarding the need to develop a system for reporting additional
information concerning investments by the entities described in
subsection (a)(2).
(c) Definitions.--As used in this section--
(1) the term ``Board'' means the Board of Governors of the
Federal Reserve System; and
(2) the term ``Commission'' means the Securities and Exchange
Commission.

e58d88e4f630a70159a3ee81b01f61ecb513b2a282bbbef0fa4bdfdd320c069e

Not later than 2 years after the date of enactment of this Act, the
Financial Institutions Examination Council shall report to the Congress
on its recommendations for the use of consistent financial terminology
by depository institutions for small business loans or leases of
personal property which are sold for the creation of small business
related securities (as defined in section 3(a)(53)(A) of the Securities
Exchange Act of 1934).
Subtitle B--Small Business Capital Enhancement

f012e4b1e896902ddb11960775d880f1bf26c103517770774403a08c5b090e91

(a) Findings.--The Congress finds that--
(1) small business concerns are a vital part of the economy,
accounting for the majority of new jobs, new products, and new
services created in the United States;
(2) adequate access to debt capital is a critical component for
small business development, productivity, expansion, and success in
the United States;
(3) commercial banks are the most important suppliers of debt
capital to small business concerns in the United States;
(4) commercial banks and other depository institutions have
various incentives to minimize their risk in financing small
business concerns;
(5) as a result of such incentives, many small business
concerns with economically sound financing needs are unable to
obtain access to needed debt capital;
(6) the small business capital access programs implemented by
certain States are a flexible and efficient tool to assist
financial institutions in providing access to needed debt capital
for many small business concerns in a manner consistent with safety
and soundness regulations;
(7) a small business capital access program would complement
other programs which assist small business concerns in obtaining
access to capital; and
(8) Federal policy can stimulate and accelerate efforts by
States to implement small business capital access programs by
providing an incentive to States, while leaving theP administration
of such programs to each participating State.
(b) Purposes.--By encouraging States to implement administratively
efficient capital access programs that encourage commercial banks and
other depository institutions to provide access to debt capital for a
broad portfolio of small business concerns, and thereby promote a more
efficient and effective debt market, the purposes of this subtitle
are--
(1) to promote economic opportunity and growth;
(2) to create jobs;
(3) to promote economic efficiency;
(4) to enhance productivity; and
(5) to spur innovation.

a361e69471cc947fb5973ac712bd6afa6d5f625f0f56a85faaa85ddcda9f3728

For purposes of this subtitle--
(1) the term ``Fund'' means the Community Development Financial
Institutions Fund established under section 104;
(2) the term ``appropriate Federal banking agency''--
(A) has the same meaning as in section 3 of the Federal
Deposit Insurance Act; and
(B) includes the National Credit Union Administration Board
in the case of any credit union the deposits of which are
insured in accordance with the Federal Credit Union Act;
(3) the term ``early loan'' means a loan enrolled at a time
when the aggregate covered amount of loans previously enrolled
under the Program by a particular participating financial
institution is less than $5,000,000;
(4) the term ``enrolled loan'' means a loan made by a
participating financial institution that is enrolled by a
participating State in accordance with this subtitle;
(5) the term ``financial institution'' means any federally
chartered or State-chartered commercial bank, savings association,
savings bank, or credit union;
(6) the term ``participating financial institution'' means any
financial institution that has entered into a participation
agreement with a participating State in accordance with section
254;
(7) the term ``participating State'' means any State that has
been approved for participation in the Program in accordance with
section 253;
(8) the term ``passive real estate ownership'' means ownership
of real estate for the purpose of deriving income from speculation,
trade, or rental, except that such term shall not include--
(A) the ownership of that portion of real estate being used
or intended to be used for the operation of the business of the
owner of the real estate (other than the business of passive
ownership of real estate); or
(B) the ownership of real estate for the purpose of
construction or renovation, until the completion of the
construction or renovation phase;
(9) the term ``Program'' means the Small Business Capital
Enhancement Program established under this subtitle;
(10) the term ``reserve fund'' means a fund, established by a
participating State, earmarked for a particular participating
financial institution, for the purposes of--
(A) depositing all required premium charges paid by the
participating financial institution and by each borrower
receiving a loan under the Program from a participating
financial institution;
(B) depositing contributions made by the participating
State; and
(C) covering losses on enrolled loans by disbursing
accumulated funds; and
(11) the term ``State'' means--
(A) a State of the United States;
(B) the District of Columbia;
(C) any political subdivision of a State of the United
States, which subdivision has a population in excess of the
population of the least populated State of the United States;
and
(D) any other political subdivision of a State of the
United States that the Fund determines has the capacity to
participate in the program.

2b7c09d4bbda82ee798d9a239fa26f60abb66d2bf611a4eeef1823e03f23aa47

(a) Application.--Any State may apply to the Fund for approval to
be a participating State under the Program and to be eligible for
reimbursement by the Fund pursuant to section 257.
(b) Approval Criteria.--The Fund shall approve a State to be a
participating State, if--
(1) a specific department or agency of the State has been
designated to implement the Program;
(2) all legal actions necessary to enable such designated
department or agency to implement the Program have been
accomplished;
(3) funds in the amount of at least $1 for every 2 people
residing in the State (as of the last decennial census for which
data have been released) are available and have been legally
committed to contributions by the State to reserve funds, with such
funds being available without time limit and without requiring
additional legal action, except that such requirements shall not be
construed to limit the authority of the State to take action at a
later time that results in the termination of its obligation to
enroll loans and make contributions to reserve funds;
(4) the State has prescribed a form of participation agreement
to be entered into between it and each participating financial
institution that is consistent with the requirements and purposes
of this subtitle; and
(5) the State and the Fund have executed a reimbursement
agreement that conforms to the requirements of this subtitle.
(c) Existing State Programs.--
(1) In general.--A State that is not a participating State, but
that has its own capital access program providing portfolio
insurance for business loans (based on a separate loss reserve fund
for each financial institution), may apply at any time to the Fund
to be approved to be a participating State. The Fund shall approve
such State to be a participating State, and to be eligible for
reimbursements by the Fund pursuant to section 257, if the State--
(A) satisfies the requirements of subsections (a) and (b);
and
(B) certifies that each affected financial institution has
satisfied the requirements of section 254.
(2) Applicable terms of participation.--
(A) Status of institutions.--If a State is approved for
participation under paragraph (1), each financial institution
with a participation agreement in effect with the participating
State shall immediately be considered a participating financial
institution. Reimbursements may be made under section 237 in
connection with all contributions made to the reserve fund by
the State in connection with lending that occurs on or after
the date on which the Fund approves the State for
participation.
(B) Effective date of participation.--If an amended
participation agreement that conforms with section 255 is
required in order to secure participation approval by the Fund,
contributions subject to reimbursement under section 257 shall
include only those contributions made to a reserve fund with
respect to loans enrolled on or after the date that an amended
participation agreement between the participating State and the
participating financial institution becomes effective.
(C) Use of accumulated reserve funds.--A State that is
approved for participation in accordance with this subsection
may continue to implement the program utilizing the reserve
funds accumulated under the StateP program.
(d) Prior Appropriations Requirement.--The Fund shall not approve a
State for participation in the Program until at least $50,000,000 has
been appropriated to the Fund (subject to an appropriations Act),
without fiscal year limitation, for the purpose of making
reimbursements pursuant to section 257 and otherwise carrying out this
subtitle.
(e) Amendments to Agreements.--If a State that has been approved to
be a participating State wishes to amend its form of participation
agreement and continue to be a participating State, such State shall
submit such amendment for review by the Fund in accordance with
subsection (b)(4). Any such amendment shall become effective only after
it has been approved by the Fund.

2bd3751c52b57ae8381dfaba37626642a8a234ddd2885ebd59b0c199724d9ada

(a) In General.--A participating State may enter into a
participation agreement with any financial institution determined by
the participating State, after consultation with the appropriate
Federal banking agency, to have sufficient commercial lending
experience and financial and managerial capacity to participate in the
Program. The determination by the State shall not be reviewable by the
Fund.
(b) Participating Financial Institutions.--Upon entering into the
participation agreement with the participating State, the financial
institution shall become a participating financial institution eligible
to enroll loans under the Program.

662f59224975ff828d49a9151d279565865e42e7bdca5ac935b169e30f2d5779

(a) In General.--The participation agreement to be entered into by
a participating State and a participating financial institution shall
include all provisions required by this section, and shall not include
any provisions inconsistent with the provisions of thisP section.
(b) Establishment of Separate Reserve Funds.--A separate reserve
fund shall be established by the participating State for each
participating financial institution. All funds credited to a reserve
fund shall be the exclusive property of the participating State. Each
reserve fund shall be an administrative account for the purposes of--
(1) receiving all required premium charges to be paid by the
borrower and participating financial institution and contributions
by the participating State; and
(2) disbursing funds, either to cover losses sustained by the
participating financial institution in connection with loans made
under the Program, or as contemplated by subsections (d) and (r).
(c) Investment Authority.--Subject to applicable State law, the
participating State may invest, or cause to be invested, funds held in
a reserve fund by establishing a deposit account at the participating
financial institution in the name of the participating State. In the
event that funds in the reserve fund are not deposited in such an
account, such funds shall be invested in a form that the participating
State determines is safe and liquid.
(d) Earned Income and Interest.--Interest or income earned on the
funds credited to a reserve fund shall be deemed to be part of the
reserve fund, except that a participating State may, as further
specified in the participation agreement, provide authority for the
participating State to withdraw some or all of such interest or income
earned.
(e) Loan Terms and Conditions.--
(1) In general.--A loan to be filed for enrollment under the
Program may be made with such interest rate, fees, and other terms
and conditions as agreed upon by the participating financial
institution and the borrower, consistent with applicable law.
(2) Lines of credit.--If a loan to be filed for enrollment is
in the form of a line of credit, the amount of the loan shall be
considered to be the maximum amount that can be drawn by the
borrower against the line of credit.
(f) Enrollment Process.--
(1) Filing.--
(A) In general.--A participating financial institution
shall file each loan made under the Program for enrollment by
completing and submitting to the participating State a form
prescribed by the participating State.
(B) Form.--The form referred to in subparagraph (A) shall
include a representation by the participating financial
institution that it has complied with the participation
agreement in enrolling the loan with the State.
(C) Premium charges.--Accompanying the completed form shall
be the nonrefundable premium charges paid by the borrower and
the participating financial institution, or evidence that such
premium charges have been deposited into the deposit account
containing the reserve fund, if applicable.
(D) Submission.--The participation agreement shall require
that the items required by this subsection shall be submitted
to the participating State by the participating financial
institutions not later than 10 calendar days after a loan is
made.
(2) Enrollment by state.--Upon receipt by the participating
State of the filing submitted in accordance with paragraph (1), the
participating State shall promptly enroll the loan and make a
matching contribution to the reserve fund in accordance with
subsection (j), unless the information submitted indicates that the
participating financial institution has not complied with the
participation agreement in enrolling the loan.
(g) Coverage Amount.--In filing a loan for enrollment under the
Program, the participating financial institution may specify an amount
to be covered under the Program that is less than the full amount of
the loan.
(h) Premium Charges.--
(1) Minimum and maximum amounts.--The premium charges payable
to the reserve fund by the borrower and the participating financial
institution shall be prescribed by the participating financial
institution, within minimum and maximum limits set forth in the
participation agreement. The participation agreement shall
establish minimum and maximum limits whereby the sum of the premium
charges paid in connection with a loan by the borrower and the
participating financial institution is not less than 3 percent nor
more than 7 percent of the amount of the loan covered under the
Program.
(2) Allocation of premium charges.--The participation agreement
shall specify terms for allocating premium charges between the
borrower and the participating financial institution. However, if
the participating financial institution is required to pay any of
the premium charges, the participation agreement shall authorize
the participating financial institution to recover from the
borrower the cost of the payment of the participating financial
institution, in any manner on which the participating financial
institution and the borrower agree.
(i) Restrictions.--
(1) Actions prohibited.--Except as provided in subsection (h)
and paragraph (2) of this subsection, the participating State may
not--
(A) impose any restrictions or requirements, relating to
the interest rate, fees, collateral, or other business terms
and conditions of the loan; or
(B) condition enrollment of a loan in the Program on the
review by the State of the risk or creditworthiness of a loan.
(2) Effect on other law.--Nothing in this subtitle shall affect
the applicability of any other law to the conduct by a
participating financial institution of its business.
(j) State Contributions.--In enrolling a loan under the Program,
the participating State shall contribute to the reserve fund an amount,
as provided for in the participation agreement, which shall not be less
than the sum of the amount of premium charges paid by the borrower and
the participating financial institution.
(k) Elements of Claims.--
(1) Filing.--If a participating financial institution charges
off all or part of an enrolled loan, such participating financial
institution may file a claim for reimbursement with the
participating State by submitting a form that--
(A) includes the representation by the participating
financial institution that it is filing the claim in accordance
with the terms of the applicable participation agreement; and
(B) contains such other information as may be required by
the participating State.
(2) Timing.--Any claim filed under paragraph (1) shall be filed
contemporaneously with the action of the participating financial
institution to charge off all or part of an enrolled loan. The
participating financial institution shall determine when and how
much to charge off on an enrolled loan, in a manner consistent with
its usual method for making such determinations on business loans
that are not enrolled loans under this subtitle.
(l) Elements of Claims.--A claim filed by a participating financial
institution may include the amount of principal charged off, not to
exceed the covered amount of the loan. Such claim may also include
accrued interest and out-of-pocket expenses, if and to the extent
provided for under the participation agreement.
(m) Payment of Claims.--
(1) In general.--Except as provided in subsection (n) and
paragraph (2) of this subsection, upon receipt of a claim filed in
accordance with this section and the participation agreement, the
participating State shall promptly pay to the participating
financial institution, from funds in the reserve fund, the full
amount of the claim as submitted.
(2) Insufficient reserve funds.--If there are insufficient
funds in the reserve fund to cover the entire amount of a claim of
a participating financial institution, the participating State
shall pay to the participating financial institution an amount
equal to the current balance in the reserve fund. If the enrolled
loan for which the claim has been filed--
(A) is not an early loan, such payment shall be deemed
fully to satisfy the claim, and the participating financial
institution shall have no other or further right to receive any
amount from the reserve fund with respect to such claim; or
(B) is an early loan, such payment shall not be deemed
fully to satisfy the claim of the participating financial
institution, and at such time as the remaining balance of the
claim does not exceed 75 percent of the balance in the reserve
fund, the participating State shall, upon the request of the
participating financial institution, pay any remaining amount
of the claim.
(n) Denial of Claims.--A participating State may deny a claim if a
representation or warranty made by the participating financial
institution to the participating State at the time that the loan was
filed for enrollment or at the time that the claim was submitted was
known by the participating financial institution to be false.
(o) Subsequent Recovery of Claim Amount.--If, subsequent to payment
of a claim by the participating State, a participating financial
institution recovers from a borrower any amount for which payment of
the claim was made, the participating financial institution shall
promptly pay to the participating State for deposit into the reserve
fund the amount recovered, less any expenses incurred by the
institution in collection of such amount.
(p) Participation Agreement Terms.--
(1) In general.--In connection with the filing of a loan for
enrollment in the Program, the participation agreement--
(A) shall require the participating financial institution
to obtain an assurance from each borrower that--
(i) the proceeds of the loan will be used for a
business purpose;
(ii) the loan will not be used to finance passive real
estate ownership; and
(iii) the borrower is not--
(I) an executive officer, director, or principal
shareholder of the participating financial institution;
(II) a member of the immediate family of an
executive officer, director, or principal shareholder
of the participating financial institution; or
(III) a related interest of any such executive
officer, director, principal shareholder, or member of
the immediate family;
(B) shall require the participating financial institution
to provide assurances to the participating State that the loan
has not been made in order to place under the protection of the
Program prior debt that is not covered under the Program and
that is or was owed by the borrower to the participating
financial institution or to an affiliate of the participating
financial institution;
(C) may provide that if--
(i) a participating financial institution makes a loan
to a borrower that is a refinancing of a loan previously
made to the borrower by the participating financial
institution or an affiliate of the participating financial
institution;
(ii) such prior loan was not enrolled in the Program;
and
(iii) additional or new financing is extended by the
participating financial institution as part of the
refinancing,
the participating financial institution may file the loan for
enrollment, with the amount to be covered under the Program not
to exceed the amount of any additional or new financing; and
(D) may include additional restrictions on the eligibility
of loans or borrowers that are not inconsistent with the
provisions and purposes of this subtitle.
(2) Definitions.--For purposes of this subsection, the terms
``executive officer'', ``director'', ``principal shareholder'',
``immediate family'', and ``related interest'' refer to the same
relationship to a participating financial institution as the
relationship described in part 215 of title 12 of the Code of
Federal Regulations, or any successor to such part.
(q) Termination Clause.--In each participation agreement, the
participating State shall reserve for itself the ability to terminate
its obligation to enroll loans under the Program. Any such termination
shall be prospective only, and shall not apply to amounts of loans
enrolled under the Program prior to suchP termination.
(r) Allowable Withdrawals From Fund.--The participation agreement
may provide that, if, for any consecutive period of not less than 24
months, the aggregate outstanding balance of all enrolled loans for a
participating financial institution is continually less than the
outstanding balance in the reserve fund for that participating
financial institution, the participating State, in its discretion, may
withdraw an amount from the reserve fund to bring the balance in the
reserve fund down to the outstanding balance of all such enrolled
loans.
(s) Grandfathered Provision.--
(1) Special treatment of premium charges.--Notwithstanding
subsection (b) or (d), the participation agreement, if explicitly
authorized by a statute enacted by the State before the date of
enactment of this Act, may allow a participating financial
institution to treat the premium charges paid by the participating
financial institution and the borrower into the reserve fund, and
interest or income earned on funds in the reserve fund that are
deemed to be attributable to such premium charges, as assets of the
participating financial institution for accounting purposes,
subject to withdrawal by the participating financial institution
only--
(A) for the payment of claims approved by the participating
State in accordance with this section; and
(B) upon the participating financial institution's
withdrawal from authority to make new loans under theP Program.
(2) Payment of post-withdrawal claims.--After any withdrawal of
assets from the reserve fund pursuant to paragraph (1)(B), any
future claims filed by the participating financial institution on
loans remaining in its capital access program portfolio shall only
be paid from funds remaining in the reserve fund to the extent
that, in the aggregate, such claims exceed the sum of the amount of
such withdrawn assets, and interest on that amount, imputed at the
same rate as income would have accrued had the amount not been
withdrawn.
(3) Conditions for terminating special authority.--If the Fund
determines that the inclusion in a participation agreement of the
provisions authorized by this subsection is resulting in the
enrollment of loans under the Program that are likely to have been
made without assistance provided under this subtitle, the Fund may
notify the participating State that henceforth, the Fund will only
make reimbursements to the State under section 257 with respect to
a loan if the participation agreement between the participating
State and each participating financial institution has been amended
to conform with this section, without exercise of the special
authority granted by this subsection.

c1bd60ab4f0e31623ef498331ca5fe8dfe2fc39fbf0ef034b3e91a94d389b795

(a) Reserve Funds Report.--On or before the last day of each
calendar quarter, a participating State shall submit to the Fund a
report of contributions to reserve funds made by the participating
State during the previous calendar quarter. If the participating State
has made contributions to one or more reserve funds during the previous
quarter, the report shall--
(1) indicate the total amount of such contributions;
(2) indicate the amount of contributions which is subject to
reimbursement, which shall be equal to the total amount of
contributions, unless one of the limitations contained in section
257 is applicable;
(3) if one of the limitations in section 257 is applicable,
provide documentation of the applicability of such limitation for
each loan for which the limitation applies; and
(4) include a certification by the participating State that--
(A) the information provided in accordance with paragraphs
(1), (2), and (3) is accurate;
(B) funds in an amount meeting the minimum requirements of
section 253(b)(3) continue to be available and legally
committed to contributions by the State to reserve funds, less
any amount that has been contributed by the State to reserve
funds subsequent to the State being approved for participation
in the Program;
(C) there has been no unapproved amendment to any
participation agreement or the form of participation
agreements; and
(D) the participating State is otherwise implementing the
Program in accordance with this subtitle and regulations issued
pursuant to section 259.
(b) Annual Data.--Not later than March 31 of each year, each
participating State shall submit to the Fund annual data indicating the
number of borrowers financed under the Program, the total amount of
covered loans, and breakdowns by industry type, loan size, annual
sales, and number of employees of the borrowers financed.
(c) Form.--The reports and data filed pursuant to subsections (a)
and (b) shall be in such form as the Fund may require.

8968836fa5fffcf252bef36ef51c4e35cb9b3bbb8216f1fa06b178c0551a4819

(a) Reimbursements.--Not later than 30 calendar days after
receiving a report filed in compliance with section 256, the Fund shall
reimburse the participating State in an amount equal to 50 percent of
the amount of contributions by the participating State to the reserve
funds that are subject to reimbursement by the Fund pursuant to section
256 and this section. The Fund shall reimburse participating States, as
it receives reports pursuant to section 256(a), until available funds
are expended.
(b) Size of Assisted Borrower.--The Fund shall not provide any
reimbursement to a participating State with respect to an enrolled loan
made to a borrower that has 500 or more employees at the time that the
loan is enrolled in the Program.
(c) Three-Year Maximum.--The amount of reimbursement to be provided
by the Fund to a participating State over any 3-year period in
connection with loans made to any single borrower or any group of
borrowers among which a common enterprise exists shall not exceed
$75,000. For purposes of this subsection, ``common enterprise'' shall
have the same meaning as in part 32 of title 12 of the Code of Federal
Regulations, or any successor to that part.
(d) Loans Totaling Less Than $2,000,000.--In connection with a loan
in which the covered amount of the loan plus the covered amount of all
previous loans enrolled by a participating financial institution does
not exceed $2,000,000, the amount of reimbursement by the Fund to the
participating State shall not exceed the lesser of--
(1) 75 percent of the sum of the premium charges paid to the
reserve fund by the borrower and the participating financial
institution; or
(2) 5.25 percent of the covered amount of the loan.
(e) Loans Totaling More Than $2,000,000.--In connection with a loan
in which the sum of the covered amounts of all previous loans enrolled
by the participating financial institution in the Program equals or
exceeds $2,000,000, the amount of reimbursement to be provided by the
Fund to the participating State shall not exceed the lesser of--
(1) 50 percent of the sum of the premium charges paid by the
borrower and the participating financial institution; or
(2) 3.5 percent of the covered amount of the loan.
(f) Other Amounts.--In connection with the enrollment of a loan
that will cause the aggregate covered amount of all enrolled loans to
exceed $2,000,000, the amount of reimbursement by the Fund to the
participating State shall be determined--
(1) by applying subsection (d) to the portion of the loan,
which when added to the aggregate covered amount of all previously
enrolled loans equals $2,000,000; and
(2) by applying subsection (e) to the balance of the loan.

f5b81f7fe86f6e6a6278d29e3af9e8c9f1041bee97178e91c48d9ca529c0077f

(a) In General.--If a participating State withdraws funds from a
reserve fund pursuant to terms of the participation agreement permitted
by subsection (d) or (r) of section 255, such participating State
shall, not later than 15 calendar days after such withdrawal, submit to
the Fund an amount computed by multiplying the amount withdrawn by the
appropriate factor, as determined under subsection (b).
(b) Factor.--The appropriate factor shall be obtained by dividing
the total amount of contributions that have been made by the
participating State to all reserve funds which were subject to
reimbursement--
(1) by 2; and
(2) by the total amount of contributions made by the
participating State to all reserve funds, including if applicable,
contributions that have been made by the State prior to becoming a
participating State if the State continued its own capital access
program in accordance with section 253(b).
(c) Use of Reimbursements.--The Fund may use funds reimbursed
pursuant to this section to make reimbursements under section 257.

b39fa60c7e1961b65682c33e8c97f025142ce42d43bd9f15f19ce7645bd62602

The Fund shall promulgate appropriate regulations to implement this
subtitle.

10d6c3b9049654304520d2665e613a64c9be5d59e37d836f27dc4c58c989b8a6

(a) Amount.--There are authorized to be appropriated to the Fund
$50,000,000 to carry out this subtitle.
(b) Budgetary Treatment.--The amount authorized to be appropriated
under subsection (a) shall be subject to discretionary spending caps,
as provided in section 601 of the Congressional Budget Act of 1974, and
therefore shall reduce by an equal amount funds made available for
other discretionary spending programs.

19f706a368058b6bb32e915b55322ead12d8ba392c25bceafa6ce878a64bb078

This subtitle shall become effective on January 6, 1996.

9d204840f8e6d57635e851d3a9fb5b82b2ed3859eb29bbb8c2e7d7cfd17fffe8

Unless otherwise specifically provided in this title, for purposes
of this title--
(1) the terms ``appropriate Federal banking agency'', ``Federal
banking agencies'', ``insured depository institution'', and ``State
bank supervisor'' have the same meanings as in section 3 of the
Federal Deposit Insurance Act; and
(2) the term ``insured credit union'' has the same meaning as
in section 101 of the Federal Credit Union Act.

c777bf6e4e234962d14d6d7eafab1e4505e68162f190832a42f2008c340383e0

REGULATIONS.
(a) Agency Considerations.--In determining the effective date and
administrative compliance requirements for new regulations that impose
additional reporting, disclosure, or other requirements on insured
depository institutions, each Federal banking agency shall consider,
consistent with the principles of safety and soundness and the public
interest--
(1) any administrative burdens that such regulations would
place on depository institutions, including small depository
institutions and customers of depository institutions; and
(2) the benefits of such regulations.
(b) Adequate Transition Period for New Regulations.--
(1) In general.--New regulations and amendments to regulations
prescribed by a Federal banking agency which impose additional
reporting, disclosures, or other new requirements on insured
depository institutions shall take effect on the first day of a
calendar quarter which begins on or after the date on which the
regulations are published in final form, unless--
(A) the agency determines, for good cause published with
the regulation, that the regulation should become effective
before such time;
(B) the regulation is issued by the Board of Governors of
the Federal Reserve System in connection with the
implementation of monetary policy; or
(C) the regulation is required to take effect on a date
other than the date determined under this paragraph pursuant to
any other Act of Congress.
(2) Early compliance.--Any person who is subject to a
regulation described in paragraph (1) may comply with the
regulation before the effective date of the regulation.

fce53f3a88780eefd10048150af7208e3f842963c84f37efc9e9798ac733adca

(a) Review of Regulations; Regulatory Uniformity.--During the 2-
year period beginning on the date of enactment of this Act, each
Federal banking agency shall, consistent with the principles of safety
and soundness, statutory law and policy, and the public interest--
(1) conduct a review of the regulations and written policies of
that agency to--
(A) streamline and modify those regulations and policies in
order to improve efficiency, reduce unnecessary costs, and
eliminate unwarranted constraints on credit availability;
(B) remove inconsistencies and outmoded and duplicative
requirements; and
(C) with respect to regulations prescribed pursuant to
section 18(o) of the Federal Deposit Insurance Act, consider
the impact that such standards have on the availability of
credit for small business, residential, and agricultural
purposes, and on low- and moderate-income communities;
(2) work jointly with the other Federal banking agencies to
make uniform all regulations and guidelines implementing common
statutory or supervisory policies; and
(3) submit a joint report to the Congress at the end of such 2-
year period detailing the progress of the agencies in carrying out
this subsection.
(b) Review of Disclosures.--The Board of Governors of the Federal
Reserve System, in consultation with the consumer advisory council to
such Board, consumers, representatives of consumers, lenders, and other
interested persons, shall--
(1) review the regulations and written policies of the Board
with respect to disclosures pursuant to the Truth in Lending Act
with regard to variable-rate mortgages in order to simplify the
disclosures, if necessary, and make the disclosures more meaningful
and comprehensible to consumers;
(2) implement any necessary regulatory changes, consistent with
applicable law; and
(3) not later than 2 years after completion of the review
required by paragraph (1), submit a report to the Congress on the
results of its actions taken in accordance with this subsection and
any recommended legislative actions.

ad8629a6046fd0f865596a0796fb1fb1c1e7edb52cb1dc0241ba9a02b353a146

The Federal banking agencies shall work jointly--
(1) to eliminate, to the extent practicable, duplicative or
otherwise unnecessary requests for information in connection with
applications or notices to the agencies; and
(2) to harmonize, to the extent practicable, any inconsistent
publication and public notice requirements.

2bc7dbe7009cfc145bab06cc63e32d07dc3ba7eb0433e4f3b8d544c5c8507693

(a) In General.--Section 10(d) of the Federal Deposit Insurance Act
(12 U.S.C. 1820(d)) is amended by adding at the end the following new
paragraphs:
``(6) Coordinated examinations.--To minimize the disruptive
effects of examinations on the operations of insured depository
institutions--
``(A) each appropriate Federal banking agency shall, to the
extent practicable and consistent with principles of safety and
soundness and the public interest--
``(i) coordinate examinations to be conducted by that
agency at an insured depository institution and its
affiliates;
``(ii) coordinate with the other appropriate Federal
banking agencies in the conduct of such examinations;
``(iii) work to coordinate with the appropriate State
bank supervisor--
``(I) the conduct of all examinations made pursuant
to this subsection; and
``(II) the number, types, and frequency of reports
required to be submitted to such agencies and
supervisors by insured depository institutions, and the
type and amount of information required to be included
in such reports; and
``(iv) use copies of reports of examinations of insured
depository institutions made by any other Federal banking
agency or appropriate State bank supervisor to eliminate
duplicative requests for information; and
``(B) not later than 2 years after the date of enactment of
the Riegle Community Development and Regulatory Improvement Act
of 1994, the Federal banking agencies shall jointly establish
and implement a system for determining which one of the Federal
banking agencies shall be the lead agency responsible for
managing a unified examination of each insured depository
institution and its affiliates, as required by this subsection.
``(7) Separate examinations permitted.--Notwithstanding
paragraph (6), each appropriate Federal banking agency may conduct
a separate examination in an emergency or under other exigent
circumstances, or when the agency believes that a violation of law
may have occurred.
``(8) Report.--At the time the system provided for in paragraph
(6) is established, the Federal banking agencies shall submit a
joint report describing the system to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Banking, Finance and Urban Affairs of the House of Representatives.
Thereafter, the Federal banking agencies shall annually submit a
joint report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Banking, Finance and
Urban Affairs of the House of Representatives regarding the
progress of the agencies in implementing the system and indicating
areas in which enhancements to the system, including legislature
improvements, would be appropriate.''.
(b) State Access to Federal Agency Reports.--The first sentence of
section 7(a)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C.
1817(a)(2)(A)) is amended by inserting ``and, with respect to any State
depository institution, any appropriate State bank supervisor for such
institution,'' after ``The Corporation''.

845aa6db4e00523043f3b05576aab9dc7e2fbd52ed83c915a3c01bb349cef569

INSTITUTIONS.
(a) In General.--Section 10(d)(4) of the Federal Deposit Insurance
Act (12 U.S.C. 1820(d)(4)) is amended--
(1) in subparagraph (A), by striking ``$100,000,000'' and
inserting ``$250,000,000'';
(2) in subparagraph (C), by striking ``and its composite
condition was found to be outstanding; and'' and inserting ``and
its composite condition--
``(i) was found to be outstanding; or
``(ii) was found to be outstanding or good, in the case
of an insured depository institution that has total assets
of not more than $100,000,000;'';
(3) by redesignating subparagraph (D) as subparagraph (E); and
(4) by inserting after subparagraph (C) the following new
subparagraph:
``(D) the insured institution is not currently subject to a
formal enforcement proceeding or order by the Corporation or
the appropriate Federal banking agency; and''.
(b) Agency Discretion To Raise Asset Limit.--Section 10(d) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by adding
at the end the following new paragraph:
``(8) Agencies authorized to increase maximum asset amount of
institutions for certain purposes.--At any time after the end of
the 2-year period beginning on the date of enactment of the Riegle
Community Development and Regulatory Improvement Act of 1994, the
appropriate Federal Pbanking agency, in the agency's discretion,
may increase the maximum amount limitation contained in paragraph
(4)(C)(ii), by regulation, from $100,000,000 to an amount not to
exceed $175,000,000 for purposes of such paragraph, if the agency
determines that the greater amount would be consistent with the
principles of safety and soundness for insured depository
institutions.''.

59b3384b31d05c65721c691edf1a73e9a1cb03e544c2e1d1d595c2c4106c58f7

(a) Modernization of Call Report Filing and Disclosure System.--In
order to reduce the administrative requirements pertaining to bank
reports of condition, savings association financial reports, and bank
holding company consolidated and parent-only financial statements, and
to improve the timeliness of such reports and statements, the Federal
banking agencies shall--
(1) work jointly to develop a system under which--
(A) insured depository institutions and their affiliates
may file such reports and statements electronically; and
(B) the Federal banking agencies may make such reports and
statements available to the public electronically; and
(2) not later than 1 year after the date of enactment of this
Act, report to the Congress and make recommendations for
legislation that would enhance efficiency for filers and users of
such reports and statements.
(b) Uniform Reports and Simplification of Instructions.--The
Federal banking agencies shall, consistent with the principles of
safety and soundness, work jointly--
(1) to adopt a single form for the filing of core information
required to be submitted under Federal law to all such agencies in
the reports and statements referred to in subsection (a); and
(2) to simplify instructions accompanying such reports and
statements and to provide an index to the instructions that is
adequate to meet the needs of both filers and users.
(c) Review of Call Report Schedule.--Each Federal banking agency
shall--
(1) review the information required by schedules supplementing
the core information referred to in subsection (b); and
(2) eliminate requirements that are not warranted for reasons
of safety and soundness or other public purposes.

ab5920cd3a5c8cafa134d544c857da10fe083102d80da90e1f2e2d16a671fc59

(a) Revised Statutes.--Section 5211 of the Revised Statutes (12
U.S.C. 161) is amended--
(1) in the 5th sentence of subsection (a), by striking ``; and
the statement of resources'' and all that follows through ``as may
be required by the Comptroller''; and
(2) in subsection (c), by striking the 4th sentence.
(b) FDIA.--Section 7(a)(1) of the Federal Deposit Insurance Act (12
U.S.C. 1817(a)(1)) is amended by striking the 4th sentence.
(c) Federal Reserve Act.--Section 9 of the Federal Reserve Act (12
U.S.C. 324) is amended in the last sentence of the 6th undesignated
paragraph, by striking ``and shall be published'' and all that follows
through the end of the sentence and inserting a period.

bf429f36b1b15b135a75b0cb16df6ddc6b27425b011bc4e75f4210bc78012e6d

DISPUTE RESOLUTION.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, each appropriate Federal banking agency and the
National Credit Union Administration Board shall establish an
independent intra-agency appellate process. The process shall be
available to review material supervisory determinations made at insured
depository institutions or at insured credit unions that the agency
supervises.
(b) Review Process.--In establishing the independent appellate
process under subsection (a), each agency shall ensure that--
(1) any appeal of a material supervisory determination by an
insured depository institution or insured credit union is heard and
decided expeditiously; and
(2) appropriate safeguards exist for protecting the appellant
from retaliation by agency examiners.
(c) Comment Period.--Not later than 90 days after the date of
enactment of this Act, each appropriate Federal banking agency and the
National Credit Union Administration Board shall provide public notice
and opportunity for comment on proposed guidelines for the
establishment of an appellate process under this section.
(d) Agency Ombudsman.--
(1) Establishment required.--Not later than 180 days after the
date of enactment of this Act, each Federal banking agency and the
National Credit Union Administration Board shall appoint an
ombudsman.
(2) Duties of ombudsman.--The ombudsman appointed in accordance
with paragraph (1) for any agency shall--
(A) act as a liaison between the agency and any affected
person with respect to any problem such party may have in
dealing with the agency resulting from the regulatory
activities of the agency; and
(B) assure that safeguards exist to encourage complainants
to come forward and preserve confidentiality.
(e) Alternative Dispute Resolution Pilot Program.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, each Federal banking agency and the National
Credit Union Administration Board shall develop and implement a
pilot program for using alternative means of dispute resolution of
issues in controversy (hereafter in this section referred to as the
``alternative dispute resolution program'') that is consistent with
the requirements of subchapter IV of chapter 5 of title 5, United
States Code, if the parties to the dispute, including the agency,
agree to such proceeding.
(2) Standards.--An alternative dispute resolution pilot program
developed under paragraph (1) shall--
(A) be fair to all interested parties to a dispute;
(B) resolve disputes expeditiously; and
(C) be less costly than traditional means of dispute
resolution, including litigation.
(3) Independent evaluation.--Not later than 18 months after the
date on which a pilot program is implemented under paragraph (1),
the Administrative Conference of the United States shall submit to
the Congress a report containing--
(A) an evaluation of that pilot program;
(B) the extent to which the pilot programs meet the
standards established under paragraph (2);
(C) the extent to which parties to disputes were offered
alternative means of dispute resolution and the frequency with
which the parties, including the agencies, accepted or declined
to use such means; and
(D) any recommendations of the Conference to improve the
alternative dispute resolution procedures of the Federal
banking agencies and the National Credit Union Administration
Board.
(4) Implementation of program.--At any time after completion of
the evaluation under paragraph (3)(A), any Federal banking agency
and the National Credit Union Administration Board may implement an
alternative dispute resolution program throughout the agency,
taking into account the results of that evaluation.
(5) Coordination with existing agency adr programs.--
(A) Evaluation required.--If any Federal banking agency or
the National Credit Union Administration maintains an
alternative dispute resolution program as of the date of
enactment of this Act under any other provision of law, the
Administrative Conference of the United States shall include
such program in the evaluation conducted under paragraph
(3)(A).
(B) Multiple adr programs.--No provision of this section
shall be construed as precluding any Federal banking agency or
the National Credit Union Administration Board from
establishing more than 1 alternative means of dispute
resolution.
(f) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Material supervisory determinations.--The term ``material
supervisory determinations''--
(A) includes determinations relating to--
(i) examination ratings;
(ii) the adequacy of loan loss reserve provisions; and
(iii) loan classifications on loans that are
significant to an institution; and
(B) does not include a determination by a Federal banking
agency or the National Credit Union Administration Board to
appoint a conservator or receiver for an insured depository
institution or a liquidating agent for an insured credit union,
as the case may be, or a decision to take action pursuant to
section 38 of the Federal Deposit Insurance Act or section 212
of the Federal Credit Union Act, as appropriate.
(2) Independent appellate process.--The term ``independent
appellate process'' means a review by an agency official who does
not directly or indirectly report to the agency official who made
the material supervisory determination under review.
(3) Alternative means of dispute resolution.--The term
``alternative means of dispute resolution'' has the meaning given
to such term in section 571 of title 5, United States Code.
(4) Issues in controversy.--The term ``issues in controversy''
means--
(A) any final agency decision involving any claim against
an insured depository institution or insured credit union for
which the agency has been appointed conservator or receiver or
for which a liquidating agent has been appointed, as the case
may be;
(B) any final action taken by an agency in the agency's
capacity as conservator or receiver for an insured depository
institution or by the liquidating agent appointed for an
insured credit union; and
(C) any other issue for which the appropriate Federal
banking agency or the National Credit Union Administration
Board determines that alternative means of dispute resolution
would be appropriate.
(g) Effect on Other Authority.--Nothing in this section shall
affect the authority of an appropriate Federal banking agency or the
National Credit Union Administration Board to take enforcement or
supervisory action.

4b081f62808aa3b9afd2913ae03828f385f5ef2276ea13e8f22bf28e498658b5

Riegle Community Development and Regulatory Improvement Act of 1994

Other Sections

TITLE I

TITLE II

TITLE III

TITLE IV

TITLE V

TITLE VI

TITLE VI

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