§ 4702. — Definitions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4702]
TITLE 12--BANKS AND BANKING
CHAPTER 47--COMMUNITY DEVELOPMENT BANKING
SUBCHAPTER I--COMMUNITY DEVELOPMENT BANKING AND FINANCIAL INSTITUTIONS
Sec. 4702. Definitions
For purposes of this subchapter, the following definitions shall
apply:
(1) Administrator
The term ``Administrator'' means the Administrator of the Fund
appointed under section 4703(b) of this title.
(2) Appropriate Federal banking agency
The term ``appropriate Federal banking agency'' has the same
meaning as in section 1813 of this title, and also includes the
National Credit Union Administration Board with respect to insured
credit unions.
(3) Affiliate
The term ``affiliate'' has the same meaning as in section
1841(k) of this title.
(4) Board
The term ``Board'' means the Community Development Advisory
Board established under section 4703(d) of this title.
(5) Community development financial institution
(A) In general
The term ``community development financial institution''
means a person (other than an individual) that--
(i) has a primary mission of promoting community
development;
(ii) serves an investment area or targeted population;
(iii) provides development services in conjunction with
equity investments or loans, directly or through a
subsidiary or affiliate;
(iv) maintains, through representation on its governing
board or otherwise, accountability to residents of its
investment area or targeted population; and
(v) is not an agency or instrumentality of the United
States, or of any State or political subdivision of a State.
(B) Conditions for qualification of holding companies
(i) Consolidated treatment
A depository institution holding company may qualify as
a community development financial institution only if the
holding company and the subsidiaries and affiliates of the
holding company collectively satisfy the requirements of
subparagraph (A).
(ii) Exclusion of subsidiary or affiliate for
failure to meet consolidated treatment rule
No subsidiary or affiliate of a depository institution
holding company may qualify as a community development
financial institution if the holding company and the
subsidiaries and affiliates of the holding company do not
collectively meet the requirements of subparagraph (A).
(C) Conditions for subsidiaries
No subsidiary of an insured depository institution may
qualify as a community development financial institution if the
insured depository institution and its subsidiaries do not
collectively meet the requirements of subparagraph (A).
(6) Community partner
The term ``community partner'' means a person (other than an
individual) that provides loans, equity investments, or development
services, including a depository institution holding company, an
insured depository institution, an insured credit union, a nonprofit
organization, a State or local government agency, a quasi-
governmental entity, and an investment company authorized to operate
pursuant to the Small Business Investment Act of 1958 [15 U.S.C. 661
et seq.].
(7) Community partnership
The term ``community partnership'' means an agreement between a
community development financial institution and a community partner
to provide development services, loans, or equity investments, to an
investment area or targeted population.
(8) Depository institution holding company
The term ``depository institution holding company'' has the same
meaning as in section 1813 of this title.
(9) Development services
The term ``development services'' means activities that promote
community development and are integral to lending or investment
activities, including--
(A) business planning;
(B) financial and credit counseling; and
(C) marketing and management assistance.
(10) Fund
The term ``Fund'' means the Community Development Financial
Institutions Fund established under section 4703(a) of this title.
(11) Indian reservation
The term ``Indian reservation'' has the same meaning as in
section 1903(10) of title 25, and shall include land held by
incorporated Native groups, regional corporations, and village
corporations, as defined in or established pursuant to the Alaska
Native Claims Settlement Act [43 U.S.C. 1601 et seq.], public domain
Indian allotments, and former Indian reservations in the State of
Oklahoma.
(12) Indian tribe
The term ``Indian tribe'' means any Indian tribe, band, pueblo,
nation, or other organized group or community, including any Alaska
Native village or regional or village corporation, as defined in or
established pursuant to the Alaska Native Claims Settlement Act [43
U.S.C. 1601 et seq.], which is recognized as eligible for the
special programs and services provided by the United States to
Indians because of their status as Indians.
(13) Insured community development financial institution
The term ``insured community development financial institution''
means any community development financial institution that is an
insured depository institution or an insured credit union.
(14) Insured credit union
The term ``insured credit union'' has the same meaning as in
section 1752(7) of this title.
(15) Insured depository institution
The term ``insured depository institution'' has the same meaning
as in section 1813 of this title.
(16) Investment area
The term ``investment area'' means a geographic area (or areas)
including an Indian reservation that--
(A)(i) meets objective criteria of economic distress
developed by the Fund, which may include the percentage of low-
income families or the extent of poverty, the rate of
unemployment or underemployment, rural population outmigration,
lag in population growth, and extent of blight and
disinvestment; and
(ii) has significant unmet needs for loans or equity
investments; or
(B) encompasses or is located in an empowerment zone or
enterprise community designated under section 1391 of title 26.
(17) Low-income
The term ``low-income'' means having an income, adjusted for
family size, of not more than--
(A) for metropolitan areas, 80 percent of the area median
income; and
(B) for nonmetropolitan areas, the greater of--
(i) 80 percent of the area median income; or
(ii) 80 percent of the statewide nonmetropolitan area
median income.
(18) State
The term ``State'' has the same meaning as in section 1813 of
this title.
(19) Subsidiary
The term ``subsidiary'' has the same meaning as in section 1813
of this title, except that a community development financial
institution that is a corporation shall not be considered to be a
subsidiary of any insured depository institution or depository
institution holding company that controls less than 25 percent of
any class of the voting shares of such corporation, and does not
otherwise control in any manner the election of a majority of the
directors of the corporation.
(20) Targeted population
The term ``targeted population'' means individuals, or an
identifiable group of individuals, including an Indian tribe, who--
(A) are low-income persons; or
(B) otherwise lack adequate access to loans or equity
investments.
(21) Training program
The term ``training program'' means the training program
operated by the Fund under section 4708 of this title.
(Pub. L. 103-325, title I, Sec. 103, Sept. 23, 1994, 108 Stat. 2163.)
References in Text
The Small Business Investment Act of 1958, referred to in par. (6),
is Pub. L. 85-699, Aug. 21, 1958, 72 Stat. 689, as amended, which is
classified principally to chapter 14B (Sec. 661 et seq.) of Title 15,
Commerce and Trade. For complete classification of this Act to the Code,
see Short Title note set out under section 661 of Title 15 and Tables.
The Alaska Native Claims Settlement Act, referred to in pars. (11)
and (12), is Pub. L. 92-203, Dec. 18, 1971, 85 Stat. 688, as amended,
which is classified generally to chapter 33 (Sec. 1601 et seq.) of Title
43, Public Lands. For complete classification of this Act to the Code,
see Short Title note set out under section 1601 of Title 43 and Tables.
Section Referred to in Other Sections
This section is referred to in sections 1715z-2, 1715z-14, 1757a,
1759, 1834a of this title; title 15 section 6901; title 26 section 45D.
