§ 4712. — Capitalization assistance to enhance liquidity.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4712]
TITLE 12--BANKS AND BANKING
CHAPTER 47--COMMUNITY DEVELOPMENT BANKING
SUBCHAPTER I--COMMUNITY DEVELOPMENT BANKING AND FINANCIAL INSTITUTIONS
Sec. 4712. Capitalization assistance to enhance liquidity
(a) Assistance
(1) In general
The Fund may provide assistance for the purpose of providing
capital to organizations to purchase loans or otherwise enhance the
liquidity of community development financial institutions, if--
(A) the primary purpose of such organizations is to promote
community development; and
(B) any assistance received is matched with funds--
(i) from sources other than the Federal Government;
(ii) on the basis of not less than one dollar for each
dollar provided by the Fund; and
(iii) that are comparable in form and value to the
assistance provided by the Fund.
(2) Limitation on other assistance
An organization that receives assistance under this section may
not receive other financial or technical assistance under this
subchapter.
(3) Construction of Federal Government funds
For purposes of this subsection, notwithstanding section
105(a)(9) of the Housing and Community Development Act of 1974 [42
U.S.C. 5305(a)(9)], funds provided pursuant to such Act shall be
considered to be Federal Government funds.
(b) Selection
The selection of organizations to receive assistance under this
section shall be at the discretion of the Fund and in accordance with
criteria established by the Fund. In establishing such criteria, the
Fund shall take into account the criteria contained in sections 4704(b)
and 4706 of this title, as appropriate.
(c) Amount of assistance
The Fund may provide a total of not more than $5,000,000 of
assistance to an organization or its subsidiaries or affiliates under
this section during any 3-year period. Assistance may be provided in a
lump sum or over a period of time, as determined by the Fund.
(d) Audit and report requirements
Organizations that receive assistance from the Fund in accordance
with this section shall--
(1) submit to the Fund, not less than once in every 18-month
period, financial statements audited by an independent certified
public accountant, as part of the report required by paragraph (2);
(2) submit an annual report on its activities; and
(3) keep such records as may be necessary to disclose the manner
in which any assistance under this section is used.
(e) Limitations on liability
(1) Liability of Fund
The liability of the Fund and the United States Government
arising out of the provision of assistance to any organization in
accordance with this section shall be limited to the amount of such
assistance. The Fund shall be exempt from any assessments and any
other liabilities that may be imposed on controlling or principal
shareholders by any Federal law or the law of any State, or
territory. Nothing in this paragraph shall affect the application of
Federal tax law.
(2) Liability of Government
This section does not oblige the Federal Government, either
directly or indirectly, to provide any funds to any organization
assisted pursuant to this section, or to honor, reimburse, or
otherwise guarantee any obligation or liability of such an
organization. This section shall not be construed to imply that any
such organization or any obligations or securities of any such
organization are backed by the full faith and credit of the United
States.
(f) Use of proceeds
Any proceeds from the sale of loans by an organization assisted
under this section shall be used by the seller for community development
purposes.
(Pub. L. 103-325, title I, Sec. 113, Sept. 23, 1994, 108 Stat. 2178.)
References in Text
The Housing and Community Development Act of 1974, referred to in
subsec. (a)(3), is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633, as
amended. For complete classification of this Act to the Code, see Short
Title note set out under section 5301 of Title 42, The Public Health and
Welfare, and Tables.
Federal tax law, referred to in subsec. (e)(1), is classified
generally to Title 26, Internal Revenue Code.
Section Referred to in Other Sections
This section is referred to in sections 4704, 4706, 4707, 4711, 4718
of this title.
