§4713 — Title 12 Banks and Banking | U.S. Code

Summary

The Fund’s Administrator will run the money made available under the authorizing law. The Administrator must talk with the Federal banking agencies, the National Credit Union Administration, certain named officials, and other bank or credit union representatives the Administrator thinks are needed. For carrying out this program, the Administrator gets the same powers, duties, and limits that the Community Enterprise Assessment Credit Board has under section 233 of the Bank Enterprise Act. The Administrator can approve or reject which areas qualify as distressed communities, decide how much in assessment credits to give, make awards, and create rules and guidance. A few specific parts of the Bank Enterprise Act and the Federal Deposit Insurance Act do not apply to the Administrator here. Providing new lifeline accounts counts as a qualifying activity. The amount of credit an institution can get is set by formula: for certain qualifying activities it is 5 percent of the calculated amount for institutions that are not community development financial institutions, and 15 percent for those that are community development financial institutions; for other qualifying activities it is 15 percent. The Administrator can award credits every six months or choose annual awards. The Administrator must spread the word about the program to all interested parties and make a small wording change to how one calculation is described.

Title 12, §4713

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(a)(1)Of any funds appropriated pursuant to the authorization in section 4718(a) of this title, the funds made available for use in carrying out this section in accordance with section 4718(a)(4) of this title 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 [12 U.S.C. 1813]) and the National Credit Union Administration;

(B)the individuals named pursuant to clauses (ii) and (iv) of section 4703(d)(2)(G) of this title; and

(C)any other representatives of insured depository institutions or other persons as the Administrator may determine to be appropriate.

(2)Subject to subsection (b) and the consultation requirement of paragraph (1)—

(A)section 233 of the Bank Enterprise Act of 1991 [12 U.S.C. 1834a] 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 [12 U.S.C. 1834a]—

(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 [12 U.S.C. 1834a(b)(2)] 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)The Administrator shall determine the amount of assessment credits, and shall make awards of those credits.

(4)The Administrator may prescribe such regulations and issue such guidelines as the Administrator determines to be appropriate to carry out this section.

(5)Notwithstanding paragraphs (1) through (4) of this subsection, subsections (a)(1) and (e)(2) of section 233 of the Bank Enterprise Act of 1991 [12 U.S.C. 1834a(a)(1), (e)(2)], and any other provision of the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.] relating to the Bank Enterprise Act of 1991, do not apply to the Administrator for purposes of this subchapter.

(b)(1)In applying section 233 of the Bank Enterprise Act of 1991 [12 U.S.C. 1834a] 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)For the purpose of this subchapter, 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)“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)section 233(a)(5) of the Bank Enterprise Act of 1991 [12 U.S.C. 1834a(a)(5)] 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 [12 U.S.C. 1834b]”; and

(B)substituting “institutions which are not community development financial institutions” for “institutions which do not meet such requirements”.

(4)section 233(b)(2) of the Bank Enterprise Act of 1991 [12 U.S.C. 1834a(b)(2)] shall be applied for purposes of this section without regard to subparagraph (A)(ii) of such section 233(b)(2).

(5)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)The Administrator shall ensure that information about the Bank Enterprise Act of 1991 under this section is widely disseminated to all interested parties.

(7)For the purpose of this subchapter, section 233(a)(2)(A) of the Bank Enterprise Act of 1991 shall be applied by inserting “of the increase” after “the amount”.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Bank Enterprise Act of 1991, referred to in subsecs. (a)(2), (5) and (b)(6), is subtitle C (§§ 231–234) of title II of Pub. L. 102–242, Dec. 19, 1991, 105 Stat. 2308–2315, which enacted sections 1834 to 1834b of this title, amended section 1817 of this title, and enacted provisions set out as a note under section 1811 of this title. For complete classification of this Act to the Code, see

Short Title

of 1991 Amendment note set out under section 1811 of this title and Tables. The Federal Deposit Insurance Act, referred to in subsec. (a)(5), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 1811 of this title and Tables. Codification Section is comprised of section 114 of Pub. L. 103–325. Subsec. (c) of section 114 of Pub. L. 103–325 amended section 1834a of this title.

§4713 Incentives for Depository Institution Participation

Summary

Title 12, §4713

Notes & Related Subsidiaries

Editorial Notes

References in Text

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