§ 4703. — Establishment of national Fund for community development banking.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4703]
TITLE 12--BANKS AND BANKING
CHAPTER 47--COMMUNITY DEVELOPMENT BANKING
SUBCHAPTER I--COMMUNITY DEVELOPMENT BANKING AND FINANCIAL INSTITUTIONS
Sec. 4703. Establishment of national Fund for community
development banking
(a) Establishment
(1) In general
There is established a corporation to be known as the Community
Development Financial Institutions Fund that shall have the duties
and responsibilities specified by this subchapter and subchapter II
of this chapter. The Fund shall have succession until dissolved. The
offices of the Fund shall be in Washington, D.C. The Fund shall not
be affiliated with or be within any other agency or department of
the Federal Government.
(2) Wholly owned Government corporation
The Fund shall be a wholly owned Government corporation in the
executive branch and shall be treated in all respects as an agency
of the United States, except as otherwise provided in this
subchapter.
(b) Management of Fund
(1) Appointment of Administrator
The management of the Fund shall be vested in an Administrator,
who shall be appointed by the President, by and with the advice and
consent of the Senate. The Administrator shall not engage in any
other business or employment during service as the Administrator.
(2) Chief financial officer
The Administrator shall appoint a chief financial officer, who
shall have the authority and functions of an agency Chief Financial
Officer under section 902 of title 31. In the event of a vacancy in
the position of the Administrator or during the absence or
disability of the Administrator, the chief financial officer shall
perform the duties of the position of Administrator.
(3) Other officers and employees
The Administrator may appoint such other officers and employees
of the Fund as the Administrator determines to be necessary or
appropriate.
(4) Expedited hiring
During the 2-year period beginning on September 23, 1994, the
Administrator may--
(A) appoint and terminate the individuals referred to in
paragraphs (2) and (3) without regard to the civil service laws
and regulations; and
(B) fix the compensation of the individuals referred to in
paragraph (3) without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of title 5 relating to
classification of positions and General Schedule pay rates,
except that the rate of pay for such individuals may not exceed
the rate payable for level V of the Executive Schedule under
section 5316 of such title.
(c) General powers
In carrying out the functions of the Fund, the Administrator--
(1) shall have all necessary and proper authority to carry out
this subchapter and subchapter II of this chapter;
(2) shall have the power to adopt, alter, and use a corporate
seal for the Fund, which shall be judicially noticed;
(3) may adopt, amend, and repeal bylaws, rules, and regulations
governing the manner in which business of the Fund may be conducted
and such rules and regulations as may be necessary or appropriate to
implement this subchapter and subchapter II of this chapter;
(4) may enter into, perform, and enforce such agreements,
contracts, and transactions as may be deemed necessary or
appropriate to the conduct of activities authorized under this
subchapter and subchapter II of this chapter;
(5) may determine the character of and necessity for
expenditures of the Fund and the manner in which they shall be
incurred, allowed, and paid;
(6) may utilize or employ the services of personnel of any
agency or instrumentality of the United States with the consent of
the agency or instrumentality concerned on a reimbursable or
nonreimbursable basis; and
(7) may execute all instruments necessary or appropriate in the
exercise of any of the functions of the Fund under this subchapter
and subchapter II of this chapter and may delegate to the officers
of the Fund such of the powers and responsibilities of the
Administrator as the Administrator deems necessary or appropriate
for the administration of the Fund.
(d) Advisory Board
(1) Establishment
There is established an advisory board to the Fund to be known
as the Community Development Advisory Board, which shall be operated
in accordance with the provisions of the Federal Advisory Committee
Act, except that section 14 of that Act does not apply to the Board.
(2) Membership
The Board shall consist of 15 members, including--
(A) the Secretary of Agriculture or his or her designee;
(B) the Secretary of Commerce or his or her designee;
(C) the Secretary of Housing and Urban Development or his or
her designee;
(D) the Secretary of the Interior or his or her designee;
(E) the Secretary of the Treasury or his or her designee;
(F) the Administrator of the Small Business Administration
or his or her designee; and
(G) 9 private citizens, appointed by the President, who
shall be selected, to the maximum extent practicable, to provide
for national geographic representation and racial, ethnic, and
gender diversity, including--
(i) 2 individuals who are officers of existing community
development financial institutions;
(ii) 2 individuals who are officers of insured
depository institutions;
(iii) 2 individuals who are officers of national
consumer or public interest organizations;
(iv) 2 individuals who have expertise in community
development; and
(v) 1 individual who has personal experience and
specialized expertise in the unique lending and community
development issues confronted by Indian tribes on Indian
reservations.
(3) Chairperson
The members of the Board specified in paragraph (2)(G) shall
select, by majority vote, a chairperson of the Board, who shall
serve for a term of 2 years.
(4) Board function
It shall be the function of the Board to advise the
Administrator on the policies of the Fund regarding activities under
this subchapter. The Board shall not advise the Administrator on the
granting or denial of any particular application.
(5) Terms of private members
(A) In general
Each member of the Board appointed under paragraph (2)(G)
shall serve for a term of 4 years.
(B) Vacancies
Any member appointed to fill a vacancy occurring prior to
the expiration of the term for which the previous member was
appointed shall be appointed for the remainder of such term.
Members may continue to serve following the expiration of their
terms until a successor is appointed.
(6) Meetings
The Board shall meet at least annually and at such other times
as requested by the Administrator or the chairperson. A majority of
the members of the Board shall constitute a quorum.
(7) Reimbursement for expenses
The members of the Board may receive reimbursement for travel,
per diem, and other necessary expenses incurred in the performance
of their duties, in accordance with the Federal Advisory Committee
Act.
(8) Costs and expenses
The Fund shall provide to the Board all necessary staff and
facilities.
(e) Omitted
(f) Government Corporation Control Act exemption
Section 9107(b) of title 31, shall not apply to deposits of the Fund
made pursuant to section 4707 of this title.
(g) Limitation of Fund and Federal liability
The liability of the Fund and the United States Government arising
out of any investment in a community development financial institution
in accordance with this subchapter shall be limited to the amount of the
investment. The Fund shall be exempt from any assessments and other
liabilities that may be imposed on controlling or principal shareholders
by any Federal law or the law of any State, Territory, or the District
of Columbia. Nothing in this subsection shall affect the application of
any Federal tax law.
(h) Prohibition on issuance of securities
The Fund may not issue stock, bonds, debentures, notes, or other
securities.
(i) Omitted
(j) Assisted institutions not United States instrumentalities
A community development financial institution or other organization
that receives assistance pursuant to this subchapter shall not be deemed
to be an agency, department, or instrumentality of the United States.
(k) Transition period
(1) In general
During the transition period, the Secretary of the Treasury
may--
(A) assist in the establishment of the administrative
functions of the Fund listed in paragraph (2); and
(B) hire not more than 6 individuals to serve as employees
of the Fund during the transition period.
(2) Continued service
Individuals hired in accordance with paragraph (1)(B) may
continue to serve as employees of the Fund after the transition
period.
(3) Administrative functions
The administrative functions referred to in paragraph (1)(A)
shall be limited to--
(A) establishing accounting, information, and recordkeeping
systems for the Fund; and
(B) procuring office space, equipment, and supplies.
(4) Expedited hiring
During the transition period, the Secretary of the Treasury
may--
(A) appoint and terminate the individuals referred to in
paragraph (1)(B) without regard to the civil service laws and
regulations; and
(B) fix the compensation of the individuals referred to in
paragraph (1)(B) without regard to the provisions of chapter 51
and subchapter III of chapter 53 of title 5 relating to
classification of positions and General Schedule pay rates,
except that the rate of pay for such individuals may not exceed
the rate payable for level V of the Executive Schedule under
section 5316 of such title.
(5) Certain employees
During the transition period, employees of the Department of the
Treasury may only comprise less than one-half of the total number of
individuals hired in accordance with paragraph (1)(B).
(6) Transition expenses
Amounts previously appropriated to the Department of the
Treasury may be used to pay obligations and expenses of the Fund
incurred under this section, and such amounts may be reimbursed by
the Fund to the Department of the Treasury from amounts appropriated
to the Fund for fiscal year 1995.
(7) ``Transition period'' defined
For purposes of this subsection, the term ``transition period''
means the period beginning on September 23, 1994, and ending on the
date on which the Administrator is appointed.
(Pub. L. 103-325, title I, Sec. 104, Sept. 23, 1994, 108 Stat. 2166.)
References in Text
The civil service laws, referred to in subsecs. (b)(4)(A) and
(k)(4)(A), are set forth in Title 5, Government Organization and
Employees. See, particularly, section 3301 et seq. of Title 5.
The Federal Advisory Committee Act, referred to in subsec. (d)(1),
(7), is Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, as amended, which is
set out in the Appendix to Title 5.
Federal tax law, referred to in subsec. (g), is classified generally
to Title 26, Internal Revenue Code.
Codification
Section is comprised of section 104 of Pub. L. 103-325. Subsecs. (e)
and (i) of section 104 of Pub. L. 103-325 amended section 9101 of Title
31, Money and Finance, and section 5313 of Title 5, Government
Organization and Employees, respectively.
Administration of Fund by Secretary of the Treasury
Pub. L. 104-134, title I, Sec. 101(e) [title III], Apr. 26, 1996,
110 Stat. 1321-257, 1321-294; renumbered title I, Pub. L. 104-140,
Sec. 1(a), May 2, 1996, 110 Stat. 1327, provided in part: ``That
notwithstanding any other provision of law, for purposes of
administering the Community Development Financial Institutions Fund, the
Secretary of the Treasury shall have all powers and rights of the
Administrator of the CDBFI Act [12 U.S.C. 4701 et seq.] and the Fund
shall be within the Department of the Treasury.''
Similar provisions were contained in the following prior
appropriations act:
Pub. L. 104-19, title I, July 27, 1995, 109 Stat. 237.
Section Referred to in Other Sections
This section is referred to in sections 4702, 4713, 4742 of this
title.
