12 U.S.C. § 4742: Definitions

Summary

Defines key words used for the Small Business Capital Enhancement Program so people know what the rules talk about. Fund is the Community Development Financial Institutions Fund. Appropriate Federal banking agency is the same agency named in federal banking law and also includes the NCUA Board for insured credit unions. Early loan is a loan enrolled when that bank’s prior enrolled loans total less than $5,000,000. Enrolled loan is a loan a participating State signs up under the Program. Financial institution is any federal or state bank, savings association, savings bank, or credit union. Participating financial institution has a participation agreement with a participating State. Participating State is a State approved to join the Program. Passive real estate ownership is holding property mainly for profit from sale, trade, or rent, but not property used for the owner’s business or property under construction until building is finished. Program means the Small Business Capital Enhancement Program. Reserve fund is money a participating State sets aside for a bank that holds required premiums from the bank and borrowers, state contributions, and pays losses on enrolled loans. State includes U.S. States, the District of Columbia, political subdivisions with a population larger than the least populated State, and other subdivisions the Fund allows.

Title 12, §4742

Banks and Banking, Source: USLM XML via OLRC

For purposes of this subchapter—

(1)the term “Fund” means the Community Development Financial Institutions Fund established under section 4703 of this title;

(2)the term “appropriate Federal banking agency”—

(A)has the same meaning as in section 1813 of this title; 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 [12 U.S.C. 1751 et seq.];

(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 subchapter;

(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 4744 of this title;

(7)the term “participating State” means any State that has been approved for participation in the Program in accordance with section 4743 of this title;

(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 subchapter;

(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.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Credit Union Act, referred to in par. (2)(B), is act June 26, 1934, ch. 750, 48 Stat. 1216, which is classified generally to chapter 14 (§ 1751 et seq.) of this title. For complete classification of this Act to the Code, see section 1751 of this title and Tables.

§4742 Definitions

Summary

Title 12, §4742

Notes & Related Subsidiaries

Editorial Notes

References in Text

Citations & Metadata