12 C.F.R. Subpart D—Investment Instruments
Title 12 - Banks and Banking
The Fund will provide financial assistance to an Awardee through one or more of the investment instruments described in §1805.401, and under such terms and conditions as described in this subpart D. The Fund, in its sole discretion, may provide financial assistance in amounts, through investment instruments, or under rates, terms and conditions that are different from those requested by an Applicant. (a) Equity. The Fund may make nonvoting equity investments in an Awardee, including, without limitation, the purchase of nonvoting stock. Such stock shall be transferable and, in the discretion of the Fund, may provide for convertibility to voting stock upon transfer. The Fund shall not own more than 50 percent of the equity of an Awardee and shall not control its operations. (b) Grants. The Fund may award grants. (c) Loans. The Fund may make loans, if permitted by applicable law. (d) Deposits and credit union shares. The Fund may make deposits (which shall include credit union shares) in Insured CDFIs and State-Insured Credit Unions. Deposits in an Insured CDFI or a State-Insured Credit Union shall not be subject to any requirement for collateral or security. (a) Except as provided in paragraph (b) of this section, the Fund may not provide, pursuant to this part, more than $5 million, in the aggregate, in financial and technical assistance to an Awardee and its Affiliates during any three-year period. (b) If an Awardee proposes to establish a new Affiliate to serve an Investment Area(s) or Targeted Population(s) outside of any State, and outside of any Metropolitan Area, currently served by the Awardee or its Affiliates, the Awardee may receive additional assistance pursuant to this part up to a maximum of $3.75 million during the same three-year period. Such additional assistance: (1) Shall be used only to finance activities in the new or expanded Investment Area(s) or Targeted Population(s); and (2) Must be distributed to a new Affiliate that meets the eligibility requirements described in §1805.200 and is selected for assistance pursuant to subpart G of this part. (c) An Awardee may receive the assistance described in paragraph (b) of this section only if no other application to serve substantially the same Investment Area(s) or Targeted Population(s) that meets the requirements of §1805.701(a) was submitted to the Fund prior to the receipt of the application of said Awardee and within the current funding round. The Fund may, at any time, sell its equity investments and loans, provided the Fund shall retain the authority to enforce the provisions of the Assistance Agreement until the performance goals specified therein have been met.
Title 12: Banks and Banking
PART 1805—COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS PROGRAM
Subpart D—Investment Instruments
§ 1805.400 Investment instruments—general.
§ 1805.401 Forms of investment instruments.
§ 1805.402 Assistance limits.
§ 1805.403 Authority to sell.
