§ 3043. — Advances.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3043]
TITLE 12--BANKS AND BANKING
CHAPTER 31--NATIONAL CONSUMER COOPERATIVE BANK
SUBCHAPTER II--OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL ASSISTANCE
Sec. 3043. Advances
(a) Capital investment advances; criteria
The Office may make a capital investment advance to any eligible
cooperative, either in conjunction with or without a loan if the Office
determines that--
(1)(A) the applicant's initial or supplemental capital
requirements exceeds its ability to obtain such capital through a
loan under section 3018 of this title or from other sources; or
(B) the membership of the applicant is, or will consist,
substantially of low-income persons, as defined by the Board of
Directors, or the applicant proposes to undertake to provide
specialized goods, services, or facilities to serve their needs; and
(2) the applicant cannot obtain sufficient funds through a loan
under section 3018 of this title or otherwise, and the applicant
presents a plan which the Office determines will permit the
replacement of a capital investment advance out of member equities
within a period not to exceed thirty years.
(b) Interest supplement advances; criteria; amount
The Office may make advances to pay all or part of the interest
payable to the Bank or any other lender by an eligible cooperative
applicant which the Office determines cannot pay a market rate of
interest because it sells goods or services to, or provides facilities
for the use of, persons of low income: Provided, That such advances will
not exceed an amount equal to 4 per centum of the principal amount of
the indebtedness of such applicant to the Bank or such other lender for
any year in which the net income of the cooperative is insufficient to
meet scheduled interest payments.
(c) Interest rate applicable to advances
Capital investment advances made by the Office pursuant to
subsection (a) of this section and interest supplement advances made by
the Office pursuant to subsection (b) of this section shall bear
interest at a rate determined by the Board of Directors of the Bank, and
the Board of Directors may authorize an interest rate applicable to such
advances lower than the rate applicable to loans by the Bank pursuant to
section 3018 of this title.
(Pub. L. 95-351, title II, Sec. 203, Aug. 20, 1978, 92 Stat. 512; Pub.
L. 97-35, title III, Sec. 396(g), Aug. 13, 1981, 95 Stat. 440.)
Amendments
1981--Subsecs. (a), (b). Pub. L. 97-35 struck out references to the
Account wherever appearing.
Effective Date of 1981 Amendment
Amendment by Pub. L. 97-35 effective on the day after the Final
Government Equity Redemption Date (Dec. 31, 1981), see section 396(i) of
Pub. L. 97-35, set out as a note under section 3011 of this title.
Section Referred to in Other Sections
This section is referred to in sections 3042, 3051 of this title.
