§ 4706. — Selection of institutions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4706]
TITLE 12--BANKS AND BANKING
CHAPTER 47--COMMUNITY DEVELOPMENT BANKING
SUBCHAPTER I--COMMUNITY DEVELOPMENT BANKING AND FINANCIAL INSTITUTIONS
Sec. 4706. Selection of institutions
(a) Selection criteria
Except as provided in section 4712 of this title, the Fund shall, in
its sole discretion, select community development financial institution
applicants meeting the requirements of section 4704 of this title for
assistance based on--
(1) the likelihood of success of the applicant in meeting the
goals of its comprehensive strategic plan;
(2) the experience and background of the management team;
(3) the extent of need for equity investments, loans, and
development services within the investment areas or targeted
populations;
(4) the extent of economic distress within the investment areas
or the extent of need within the targeted populations, as those
factors are measured by objective criteria;
(5) the extent to which the applicant will concentrate its
activities on serving its investment areas or targeted populations;
(6) the amount of firm commitments to meet or exceed the
matching requirements and the likely success of the plan for raising
the balance of the match;
(7) the extent to which the matching funds are derived from
private sources;
(8) the extent to which the proposed activities will expand
economic opportunities within the investment areas or the targeted
populations;
(9) whether the applicant is, or will become, an insured
community development financial institution;
(10) the extent of support from the investment areas or targeted
populations;
(11) the extent to which the applicant is, or will be,
community-owned or community-governed;
(12) the extent to which the applicant will increase its
resources through coordination with other institutions or
participation in a secondary market;
(13) in the case of an applicant with a prior history of serving
investment areas or targeted populations, the extent of success in
serving them; and
(14) other factors deemed to be appropriate by the Fund.
(b) Geographic diversity
In selecting applicants for assistance, the Fund shall seek to fund
a geographically diverse group of applicants, which shall include
applicants from metropolitan, nonmetropolitan, and rural areas.
(Pub. L. 103-325, title I, Sec. 107, Sept. 23, 1994, 108 Stat. 2172.)
Section Referred to in Other Sections
This section is referred to in sections 4705, 4707, 4712 of this
title.
