§5623 — Title 12 Banks and Banking | U.S. Code

Summary

Authorizes the Secretary to run a multiyear program that gives grants, agreements, and similar support to help low- and moderate-income people open and use one or more accounts at federally insured deposit institutions and to make those accounts easier to get on fair terms. Only eligible entities chosen under rules the Secretary sets may join the program. Participating entities may offer account-related products and services, including small-dollar loans and financial education and counseling on using and managing accounts.

Title 12, §5623

Banks and Banking — Source: USLM XML via OLRC

(a)The Secretary is authorized to establish a multiyear program of grants, cooperative agreements, financial agency agreements, and similar contracts or undertakings to promote initiatives designed—

(1)to enable low- and moderate-income individuals to establish one or more accounts in a federally insured depository institution that are appropriate to meet the financial needs of such individuals; and

(2)to improve access to the provision of accounts, on reasonable terms, for low- and moderate-income individuals.

(b)(1)The Secretary shall restrict participation in any program established under subsection (a) to an eligible entity. Subject to regulations prescribed by the Secretary under this subchapter, 1 or more eligible entities may participate in 1 or several programs established under subsection (a).

(2)Subject to regulations prescribed by the Secretary, an eligible entity may, in participating in a program established under subsection (a), offer or provide to low- and moderate-income individuals products and services relating to accounts, including—

(A)small-dollar value loans; and

(B)financial education and counseling relating to conducting transactions in and managing accounts.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This subchapter, referred to in subsec. (b)(1), was in the original “this title”, meaning title XII of Pub. L. 111–203, July 21, 2010, 124 Stat. 2129, known as the Improving Access to Mainstream Financial Institutions Act of 2010, which is classified principally to this subchapter. For complete classification of title XII to the Code, see

Short Title

note set out under section 5301 of this title and Tables.

§5623 Expanded access to mainstream financial institutions