,,ii #aafth ,,congress #b;d ,session ,s4 #dbee ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ba1 #bjbj ,mr4 ,warner 7for himself1 ,mr4 ,booker1 ,ms4 ,harris1 and ,mr4 ,schumer7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,,cares ,act to establish community investment programs1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,jobs and ,neighborhood ,investment ,act4 #b4 ,purpose ,the purpose of this ,act is to-- 7#a7 establish programs to revitalize and provide long-term financial products and service availability for1 and provide investments in1 low- and moderate-income and minority communities2 7#b7 respond to the unprecedented loss of ,black-owned businesses and unemployment2 and 7#c7 otherwise enhance the stability1 safety and soundness of community financial institutions that support low- and moderate-income and minority communities4 #c4 ,considerations2 requirements for creditors 7a7 ,in general ,in exercising the authorities under this ,act and the amendments made by this ,act1 the ,secretary of the ,treasury shall take into consideration-- 7#a7 increasing the availability of affordable credit for consumers1 small businesses1 and nonprofit organizations1 including for projects supporting affordable housing1 community-serving real estate1 and other projects1 that provide direct benefits to low- and moderate-income communities1 low-income and underserved individuals1 and minorities2 7#b7 providing funding to minority-owned or minority-led eligible institutions and other eligible institutions that have a strong track record of serving minority small businesses2 7#c7 protecting and increasing jobs in the ,united ,states2 7#d7 increasing the opportunity for small business1 affordable housing and community development in geographic areas and demographic segments with poverty and high unemployment rates that exceed the average in the ,united ,states2 7#e7 ensuring that all low- and moderate-income community financial institutions may apply to participate in the programs established under this ,act and the amendments made by this ,act1 without discrimination based on geography2 7#f7 providing transparency with respect to use of funds provided under this ,act and the amendments made by this ,act2 7#g7 promoting and engaging in financial education to would-be borrowers2 and 7#h7 providing funding to eligible institutions that serve consumers1 small businesses1 and nonprofit organizations to support affordable housing1 community-serving real estate1 and other projects that provide direct benefits to low- and moderate-income communities1 low-income individuals1 and minorities directly affected by the ,,covid-#ai pandemic4 7b7 ,requirement for creditors ,any creditor participating in a program established under this ,act or the amendments made by this ,act shall fully comply with all applicable statutory and regulatory requirements relating to fair lending4 #d4 ,sense of ,congress ,it is the sense of ,congress that the investments made by the ,secretary of the ,treasury under this ,act and the amendments made by this ,act should be designed to maximize the benefit to low- and moderate-income and minority communities and contemplate losses to capital of the ,treasury4 #e4 ,neighborhood ,investment ,programs ,title ,,iv of the ,,cares ,act 7,public ,law #aaf-acf7 is amended-- 7#a7 in section #djjb 7#ae ,u4,s4,c4 #ijda7-- 7,a7 by redesignating paragraphs 7#g7 through 7#aj7 as paragraphs 7#h7 through 7#aa71 respectively2 and 7,b7 by inserting after paragraph 7#f7 the following3 7#g7 ,low- and moderate-income community financial institution ,the term low- and moderate-income community financial institution means any financial institution that is-- 7,a7 a community development financial institution1 as defined in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb72 or 7,b7 a minority depository institution1 as defined in section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note71 for which the majority of the community served by the minority depository institution is minority1 as defined in such section4 2 7#b7 in section #djjc 7#ae ,u4,s4,c4 #ijdb71 by adding at the end the following3 7i7 ,neighborhood ,capital ,investment ,program 7#a7 ,definitions ,in this subsection-- 7,a7 the term community development financial institution has the meaning given the term in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb72 7,b7 the term ,fund means the ,community ,development ,financial ,institutions ,fund established under section #ajd7;a7 of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjc7;a772 7,c7 the term minority means any ,black ,american1 ,native ,american1 ,hispanic ,american1 or ,asian ,american2 and 7,d7 the term ,program means the ,neighborhood ,capital ,investment ,program established under paragraph 7#b74 7#b7 ,establishment ,the ,secretary shall establish a ,neighborhood ,capital ,investment ,program to support low- and moderate-income community financial institutions to provide loans and forbearance to borrowers in low- and moderate-income communities1 especially for borrowers who are historically disadvantaged1 including minorities1 and borrowers in rural and urban low-income and underserved communities4 7#c7 ,investments ,under the ,program1 the ,secretary shall establish a fund to facilitate direct capital investments1 including purchases and modifications of those purchases1 of senior preferred non-voting stock1 subordinated debentures1 and other financial instruments 7including equity equivalent capital and secondary capital investments described in section #baf7o77#b77;,c7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #agij;d7o77#b77;,c77 from low- and moderate-income community financial institutions on such terms as are determined by the ,secretary in accordance with this subtitle4 7#d7 ,application 7,a7 ,acceptance ,the ,secretary shall begin accepting applications for capital investments under the ,program not later than the end of the #cj-;day period beginning on the date of enactment of this subsection1 with priority in distribution given to low- and moderate-income community financial institutions that are minority-owned or minority-led lenders4 7,b7 ,requirement to provide a neighborhood investment lending plan 7i7 ,in general ,at the time that an applicant submits an application to the ,secretary for a capital investment under the ,program1 the applicant shall provide the ,secretary1 along with the appropriate ,federal banking agency1 an investment and lending plan that-- 7,i7 demonstrates that not less than #cj percent of the lending of the applicant over the past #b fiscal years was made directly to low- and moderate income borrowers1 to borrowers that create direct benefits for low- and moderate-income populations1 to other targeted populations as defined by the ,fund1 or any combination thereof1 as measured by the total number and dollar amount of loans2 7,,ii7 describes how the business strategy and operating goals of the applicant will address community development needs1 which includes the needs of small businesses1 consumers1 nonprofit organizations1 community development1 and other projects providing direct benefits to low- and moderate-income communities1 low-income individuals1 and minorities within the minority1 rural1 and urban low-income and underserved areas served by the applicant2 7,,iii7 includes a plan to provide linguistically and culturally appropriate outreach1 where appropriate2 7,,iv7 includes an attestation by the applicant that the applicant does not own1 service1 or offer any financial products at an annual percentage rate of more than #cf percent interest1 as defined in section #ihg7;i77#d7 of title #aj1 ,united ,states ,code1 and is compliant with ,state interest rate laws2 and 7,v7 includes details on how the applicant plans to expand or maintain significant lending or investment activity in low- or moderate-income minority communities1 to historically disadvantaged borrowers1 and to minorities that have significant unmet capital or financial services needs4 7ii7 ,community development loan funds ,an applicant that is not an insured community development financial institution or otherwise regulated by a ,federal financial regulator shall submit the plan described in clause 7i7 only to the ,secretary4 7iii7 ,documentation ,in the case of an applicant that is certified as a community development financial institution as of the date of enactment of this subsection1 for purposes of clause 7i77,i71 the ,secretary may rely on documentation submitted the ,fund as part of certification compliance reporting4 7#e7 ,incentives to increase lending and provide affordable credit 7,a7 ,requirements on preferred stock and other financial instrument ,any financial instrument issued to ,treasury by a low- and moderate-income community financial institution under the ,program shall provide the following3 7i7 ,no dividends1 interest or other payments shall exceed #b percent per annum4 7ii7 ,after the first #bd months from the date of the capital investment under the ,program1 annual payments may be required1 as determined by the ,secretary and in accordance with this section1 and adjusted downward based on the amount of affordable credit provided by the low- and moderate-income community financial institution to borrowers in minority1 rural1 and urban low-income and underserved communities4 7iii7 ,during any calendar quarter after the initial #bd-month period referred to in clause 7ii71 the annual payment rate of a low- and moderate-income community financial institution shall be adjusted downward to reflect the following schedule1 based on lending by the institution relative to the baseline period3 7,i7 ,if the institution in the most recent annual period prior to the investment provides significant lending or investment activity in low- or moderate-income minority communities1 historically disadvantaged borrowers1 and to minorities that have significant unmet capital or financial services1 the annual payment rate shall not exceed #j4e percent per annum4 7,,ii7 ,if the amount of lending within minority1 rural1 and urban low-income and underserved communities and to low- and moderate-income borrowers has increased dollar for dollar based on the amount of the capital investment1 the annual payment rate shall not exceed #a percent per annum4 7,,iii7 ,if the amount of lending within minority1 rural1 and urban low-income and underserved communities and to low- and moderate-income borrowers has increased by twice the amount of the capital investment1 the annual payment rate shall not exceed #j4e percent per annum4 7,b7 ,contingency of payments based on certain financial criteria 7i7 ,deferral ,any annual payments under this subsection shall be deferred in any quarter or payment period if any of the following is true3 7,i7 ,the low- and moderate-income community institution fails to meet the ,tier #a capital ratio or similar ratio as determined by the ,secretary4 7,,ii7 ,the low- and moderate-income community financial institution fails to achieve positive net income for the quarter or payment period4 7,,iii7 ,the low- and moderate-income community financial institution determines that the payment would be detrimental to the financial health of the institution4 7ii7 ,testing during next payment period ,any deferred annual payment under this subsection shall be tested against the metrics described in clause 7i7 at the beginning of the next payment period1 and such payments shall continue to be deferred until the metrics described in that clause are no longer applicable4 7#f7 ,restrictions 7,a7 ,in general ,each low- and moderate-income community financial institution may only issue financial instruments or senior preferred stock under this subsection with an aggregate principal amount that is-- 7i7 not more than #ae percent of risk-weighted assets for an institution with assets of more than #b1jjj1jjj1jjj2 7ii7 not more than #be percent of risk-weighted assets for an institution with assets of not less than #ejj1jjj1jjj and not more than #b1jjj1jjj1jjj2 and 7iii7 not more than #cj percent of risk-weighted assets for an institution with assets of less than #ejj1jjj1jjj4 7,b7 ,holding of instruments ,holding any instrument of a low- and moderate-income community financial institution described in subparagraph 7,a7 shall not give the ,treasury or any successor that owns the instrument any rights over the management of the institution4 7,c7 ,sale of interest ,with respect to a capital investment made into a low- and moderate-income community financial institution under this subsection1 the ,secretary-- 7i7 except as provided in clause 7iv71 during the #aj-year period following the investment1 may not sell the interest of the ,secretary in the capital investment to a third party2 7ii7 shall provide the low- and moderate-income community financial institution a right of first refusal to buy back the investment under terms that do not exceed a value as determined by an independent third party2 and 7iii7 shall not sell more than a #e percent ownership interest in the capital investment to a single third party2 and 7iv7 with the permission of the institution1 may gift or sell the interest of the ,secretary in the capital investment for a de minimus amount to-- 7,i7 a mission aligned nonprofit affiliate of an applicant that is an insured community development financial institution1 as defined in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb72 or 7,,ii7 #a or more mission-aligned nonprofit organizations selected by the institution that are not affiliated with the institution4 7v7 ,calculation of ownership for minority depository institutions ,the calculation and determination of ownership thresholds for a depository institution to qualify as a minority depository institution described in section #djjb7g77;,b7 shall exclude any dilutive effect of equity investments by the ,federal ,government1 including under the ,program or through the ,fund4 7#g7 ,available amounts ,in carrying out the ,program1 the ,secretary shall use such sums as may be necessary1 but not less than #g1jjj1jjj1jjj1 from amounts made available under subsection 7b71 notwithstanding the limitations on the use of such funds under paragraphs 7#a7 through 7#d7 of such subsection 7b74 7#h7 ,treatment of capital investments ,any capital investment under the ,program shall receive ,tier #a capital treatment1 as defined by the ,federal ,financial ,institutions ,examination ,council1 or shall be treated as a secondary capital investment described in section #baf7o77#b77;,c7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #agij;d7o77#b77;,c774 7#i7 ,outreach to minorities ,the ,secretary shall require low- and moderate-income community financial institutions receiving capital investments under the ,program to provide linguistically and culturally appropriate outreach and advertising describing the availability and application process of receiving loans made possible by the ,program through organizations1 trade associations1 and individuals that represent or work within or are members of minority communities4 7#aj7 ,inapplicability of restrictions ,the restrictions and limitations described in subparagraphs 7,e7 and 7,f7 of paragraph 7#b7 and paragraph 7#c77;,a77ii7 of subsection 7c7 of section #djjc and in section #djjd shall not apply to the ,program4 7#aa7 ,termination of investment authority ,the authority to make capital investments in low- and moderate-income community financial institutions1 including commitments to purchase preferred stock or other instruments1 provided under the ,program shall terminate on the date that is #cf months after the date of enactment of this subsection4 7#ab7 ,collection of data ,notwithstanding the ,equal ,opportunity ,credit ,act 7#ae ,u4,s4,c4 #afia et seq47-- 7,a7 any low- and moderate-income community financial institution may collect data described in section #gja7;a77#a7 of that ,act 7#ae ,u4,s4,c4 #afia7;a77#a77 from borrowers and applicants for credit for the purpose of monitoring compliance under the plan required under paragraph 7#d77;,b72 and 7,b7 a low- and moderate-income community financial institution that collects the data described in subparagraph 7,a7 shall not be subject to adverse action related to that collection by the ,bureau of ,consumer ,financial ,protection or any other ,federal agency4 7#ac7 ,deposit of funds ,all funds received by the ,secretary in connection with purchases made pursuant this subsection1 including interest payments1 dividend payments1 and proceeds from the sale of any financial instrument1 shall be deposited into the ,fund and used to provide financial and technical assistance pursuant to section #ajh of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjg71 except that subsection 7e7 of that section shall be waived4 4 7j7 ,neighborhood loan program 7#a7 ,definitions ,in this subsection-- 7,a7 the term financial institution means any entity regulated by the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 or the ,federal ,deposit ,insurance ,corporation2 7,b7 the term intermediary means any entity engaged in aggregating loans originated by low- and moderate-income community financial institutions2 and 7,c7 the term ,program means the ,neighborhood ,loan ,program established under paragraph 7#b74 7#b7 ,establishment ,the ,secretary1 in conjunction with the ,board of ,governors of the ,federal ,reserve ,system1 shall establish a ,neighborhood ,loan ,program to create facilities under section #ac7c7 of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #cdc7c77 to provide liquidity and encourage equity equivalent capital investments for low- and moderate-income community financial institutions serving low- and moderate-income and minority communities4 7#c7 ,minimization of burden ,any guidance1 regulations1 frequently asked question1 or other written or verbal communications provided by the ,secretary or the ,board of ,governors of the ,federal ,reserve ,system in connection with the ,program shall be designed to minimize any burden to the relevant low- and moderate-income community financial institution and to ensure that the ,program is actively utilized by the low- and moderate-income community financial institution for which the ,program is being created4 7#d7 ,small business community loan participations 7,a7 ,in general ,the facilities created under paragraph 7#b7 shall purchase #ij percent of the balance of eligible small business loans described in subparagraph 7,b71 either directly from low- and moderate-income community financial institutions1 or from intermediaries1 to increase access to credit and build wealth in low- and moderate-income and minority communities4 7,b7 ,criteria for eligible small business loans ,an eligible small business loan described in this subparagraph shall have-- 7i7 a maximum loan balance of #bej1jjj2 7ii7 reasonable loan origination and service fees2 and 7iii7 other terms as prescribed by the ,secretary4 7,c7 ,eligibility ,to be eligible under subparagraph 7,a71 a low- and moderate-income community financial institution shall hold not less than #aj percent of each eligible small business loan described in subparagraph 7,b71 or #aj percent of the loans as represented in a loan pool described in subparagraph 7,d74 7,d7 ,loan pool ,each loan pool described in subparagraph 7,a7-- 7i7 shall be composed of not less than #ej loans that amount to not less than #a1jjj1jjj2 7ii7 shall be originated by a low- and moderate-income community financial institution for a commercially reasonable fee charged by the facility created under the ,program2 7iii7 shall be serviced by a low- and moderate-income community financial institution for a commercially reasonable fee charged by a facility created under the ,program2 and 7iv7 shall be representative of the risk in the total loan portfolio of the low- and moderate-income community financial institution4 7,e7 ,prioritization ,low- and moderate-income community financial institutions shall prioritize the purchase of eligible small business loans described in subparagraph 7,b7 that are made to minority-owned small businesses4 7#e7 ,equity equivalent loan participations 7,a7 ,in general ,the facilities created under paragraph 7#b7 shall purchase #ij percent participations in loans made by financial institutions to low- and moderate-income community financial institutions that meet the eligibility requirements in this paragraph4 7,b7 ,eligibility ,to be eligible under subparagraph 7,a71 a financial institution shall retain not less than #aj percent of each loan described in subparagraph 7,c74 7,c7 ,loans ,a loan described in this subparagraph shall be-- 7i7 for not more than #aj1jjj1jjj2 7ii7 originated after ,march #ae1 #bjbj2 7iii7 serviced by a financial institution2 and 7iv7 treated as an equity equivalent investment1 as defined by the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 or the ,federal ,deposit ,insurance ,corporation4 7#f7 ,application date ,the ,secretary shall begin accepting applications under the ,program not later than the end of the #cj-;day period beginning on the date of enactment of this subsection4 7#g7 ,inapplicability of restrictions ,the restrictions and limitations described in subparagraphs 7,e7 and 7,f7 of paragraph 7#b7 and paragraph 7#c77;,a77ii7 of subsection 7b7 of section #djjc and in section #djjd shall not apply to the ,program4 7#h7 ,available amounts ,in carrying out the ,program1 the ,secretary shall use such sums as may be necessary1 but not less than #h1jjj1jjj1jjj1 from amounts made available under paragraph 7#d7 of subsection 7b71 notwithstanding the limitations on the use of such funds under that paragraph4 7#i7 ,termination ,the ,program shall terminate on the date that is #dh months after the date of enactment of this subsection4 7k7 ,application of the ,military lending ,act 7#a7 ,in general ,no low- and moderate-income community financial institution that receives an equity investment under subsection 7i7 or sells a loan participation under subsection 7j7 shall1 for so long as the investment or participation continues1 make any loan at an annualized percentage rate above #cf percent1 as determined in accordance with section #ihg7;b7 of title #aj1 ,united ,states ,code 7commonly known as the ,military ,lending ,act74 7#b7 ,no exemptions permitted ,the exemption authority of the ,bureau under section #aje7;f7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjd7;f77 shall not apply with respect to this subsection4 4 #f4 ,supporting the ,,cdfi ,fund 7a7 ,appropriations ,of the amounts made available to the ,secretary of the ,treasury under section #djbg of the ,,cares ,act 7,public ,law #aaf-acf71 #b1ijj1jjj1jjj shall be made available to the ,fund to carry out this section4 7b7 ,set asides ,of the amounts made available under subsection 7a71 the following amounts shall be set aside3 7#a7 ,up to #a1jjj1jjj1jjj1 to remain available until ,september #cj1 #bjba1 to support1 prepare for1 and respond to the economic impact of the coronavirus1 provided that the ,fund shall-- 7,a7 provide grants funded under this paragraph using a formula that takes into account criteria such as certification status1 financial and compliance performance1 portfolio and balance sheet strength1 a diversity of ,,cdfi business model types1 and program capacity1 of which not less than #be1jjj1jjj may be for grants to benefit ,native ,american1 ,native ,hawaiian1 and ,alaska ,native communities2 and 7,b7 make funds available under this paragraph not later than #fj days after the date of enactment of this ,act4 7#b7 ,up to #a1jjj1jjj1jjj1 to remain available until expended1 to provide grants to ,c,d,f,is-- 7,a7 to expand lending or investment activity in low- or moderate-income minority communities and to minorities that have significant unmet capital or financial services needs2 and 7,b7 using a formula that takes into account criteria such as certification status1 financial and compliance performance1 portfolio and balance sheet strength1 a diversity of ,,cdfi business model types1 and program capacity1 as well as experience making loans and investments to those areas and populations identified in this paragraph4 7#c7 ,up to #djj1jjj1jjj1 to remain available until expended1 for technical assistance1 technology1 and training under sections #ajh7;a77#a77;,b7 and #aji1 respectively1 of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjg7;a77#a77;,b71 #dgjh71 with a preference for minority-led and minority-owned ,c,d,f,is that primarily serve low- and moderate-income communities4 7#d7 ,up to #ejj1jjj1jjj1 to remain available until expended1 to provide grants to recipients that are minority-led and minority-owned ,c,d,f,is4 7c7 ,administrative expenses ,funds made available under this section may be used for administrative expenses1 including administration of ,fund programs and the ,new ,markets ,tax ,credit ,program under section #de;,d of the ,internal ,revenue ,code4 7d7 ,emergency designation 7#a7 ,in general ,the amounts provided under this section are designated as an emergency requirement pursuant to section #d7;g7 of the ,statutory ,pay-,as-,you-,go ,act of #bjaj 7#b ,u4,s4,c4 #icc7;g774 7#b7 ,designation in senate ,in the ,senate1 this section is designated as an emergency requirement pursuant to section #daab7;a7 of ,h4 ,con4 ,res4 #ga 7#aaeth ,congress71 the concurrent resolution on the budget for fiscal year #bjah4 7e7 ,definitions ,in this section3 7#a7 ,,cdfi ,the term ,,cdfi means a community development financial institution1 as defined in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb74 7#b7 ,fund ,the term ,fund means the ,community ,development ,financial ,institutions ,fund established under section #ajd7;a7 of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjc7;a774 7#c7 ,minority ,the term minority means any ,black ,american1 ,native ,american1 ,hispanic ,american1 or ,asian ,american4 #g4 ,federal deposits in minority depository institutions 7a7 ,in general ,section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note7 is amended by adding at the end the following3 7d7 ,federal deposits ,the ,secretary of the ,treasury shall ensure that deposits made by ,federal agencies in minority depository institutions are fully collateralized or fully insured1 as determined by the ,secretary4 ,such deposits shall include reciprocal deposits as defined in section #ccg4f7;e77#b77v7 of title #ab1 ,code of ,federal ,regulations 7as in effect on ,march #f1 #bjai74 4 7b7 ,technical amendments ,section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note7 is amended-- 7#a7 in the matter preceding paragraph 7#a71 by striking section-- and inserting section32 and 7#b7 in the paragraph heading for paragraph 7#a71 by striking financial and inserting depository4 #h4 ,minority ,bank ,deposit ,program 7a7 ,in general ,section #abjd of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #ahaa note7 is amended to read as follows3 #abjd4 ,expansion of use of minority banks and minority credit unions 7a7 ,minority ,bank ,deposit ,program 7#a7 ,establishment ,there is established a program to be known as the ,minority ,bank ,deposit ,program to expand the use of minority banks and minority credit unions4 7#b7 ,administration ,the ,secretary of the ,treasury1 acting through the ,fiscal ,service1 shall-- 7,a7 on application by a depository institution or credit union1 certify whether such depository institution or credit union is a minority bank or minority credit union2 7,b7 maintain and publish a list of all depository institutions and credit unions that have been certified pursuant to subparagraph 7,a72 and 7,c7 periodically distribute the list described in subparagraph 7,b7 to-- 7i7 all ,federal departments and agencies2 7ii7 interested ,state and local governments2 and 7iii7 interested private sector companies4 7#c7 ,inclusion of certain entities on list ,a depository institution or credit union that1 on the date of the enactment of this section1 has a current certification from the ,secretary of the ,treasury stating that such depository institution or credit union is a minority bank or minority credit union shall be included on the list described under paragraph 7#b77;,b74 7b7 ,expanded ,use ,among ,federal ,departments and ,agencies 7#a7 ,in general ,not later than #a year after the establishment of the program described in subsection 7a71 the head of each ,federal department or agency shall develop and implement standards and procedures to ensure1 to the maximum extent possible as permitted by law1 the use of minority banks and minority credit unions to serve the financial needs of each such department or agency4 7#b7 ,report to ,congress ,not later than #b years after the establishment of the program described in subsection 7a71 and annually thereafter1 the head of each ,federal department or agency shall submit to ,congress a report on the actions taken to increase the use of minority banks and minority credit unions to serve the financial needs of each such department or agency4 7c7 ,definitions ,for purposes of this section3 7#a7 ,credit union ,the term credit union has the meaning given the term insured credit union in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#b7 ,depository institution ,the term depository institution has the meaning given the term insured depository institution in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#c7 ,minority ,the term minority means any ,black ,american1 ,native ,american1 ,hispanic ,american1 or ,asian ,american4 7#d7 ,minority bank ,the term minority bank means a minority depository institution as defined in section #cjh of this ,act4 7#e7 ,minority credit union ,the term minority credit union means any credit union for which more than #ej percent of the membership 7including board members7 of such credit union are minority individuals1 as determined by the ,national ,credit ,union ,administration pursuant to section #cjh of this ,act4 4 7b7 ,conforming ,amendments ,the following provisions are amended by striking #abjd7;c77#c7 and inserting #abjd7;c73 7#a7 ,section #hjh7;b77#c7 of the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bijg7;b77#c774 7#b7 ,section #dj7;g77#a77;,b7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcaq7g77#a77;,b774 7#c7 ,section #gjd;,b7h77#d7 of the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia;c-#b7;h77#d774 #i4 ,investments in minority depository institutions 7a7 ,control for insured depository institutions ,section #g7;j77#h77;,b7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahag7;j77#h77;,b77 is amended to read as follows3 7,b7 control means the power1 directly or indirectly-- 7i7 to direct the management or policies of an insured depository institution2 or 7ii7 of a person to vote #be per centum or more of any class of voting securities of an insured depository institution4 4 7b7 ,rulemaking ,the appropriate ,federal banking agency 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 shall jointly issue rules for de novo minority depository institutions to allow #c years to meet the capital requirements otherwise applicable to minority depository institutions4 7c7 ,report ,not later than #a year after the date of enactment of this ,act1 the appropriate ,federal banking agencies 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 shall jointly submit to ,congress a report on-- 7#a7 the principal causes for the low number of de novo minority depository institutions during the #aj-year period preceding the date of the report2 7#b7 the main challenges to the creation of de novo minority depository institutions2 and 7#c7 regulatory and legislative considerations to promote the establishment of de novo minority depository institutions4 #aj4 ,custodial deposit program for covered minority depository institutions 7a7 ,establishment ,the ,secretary of the ,treasury shall establish a custodial deposit program 7in this section referred to as the ,program7 under which a covered bank shall receive monthly deposits from a qualifying account4 7b7 ,application ,a covered bank shall submit to the ,secretary an application to participate in the ,program at such time1 in such manner1 and containing such information as the ,secretary may determine4 7c7 ,program operations 7#a7 ,designation of custodial entities ,the ,secretary shall designate eligible custodial entities to make monthly deposits with covered banks selected for participation in the ,program on behalf of a qualifying account4 7#b7 ,custodial accounts 7,a7 ,in general ,the ,secretary shall establish a custodial deposit account for each qualifying account with the eligible custodial entity designated to make deposits with covered banks for each such qualifying account4 7,b7 ,amount ,the ,secretary shall deposit a total amount not greater than #e percent of a qualifying account into any custodial deposit accounts established under subparagraph 7,a74 7,c7 ,deposits with ,program participants 7i7 ,monthly deposits ,each month1 each eligible custodial entity designated by the ,secretary shall deposit an amount not greater than the insured amount1 in the aggregate1 from each custodial deposit account1 in a single covered bank4 7ii7 ,limitation ,with respect to the funds of an individual qualifying account1 the eligible custodial entity may not deposit an amount greater than the insured amount in a single covered bank4 7iii7 ,insured amount defined ,in this subparagraph1 the term insured amount means the amount that is the greater of-- 7,i7 the standard maximum deposit insurance amount 7as defined in section #aa7;a77#a77;,e7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba7;a77#a77;,e7772 or 7,,ii7 such higher amount negotiated between the ,secretary and the ,corporation under which the ,corporation will insure all deposits of such higher amount4 7,d7 ,limitations ,the total amount of funds deposited under the ,program in a covered bank may not exceed the lesser of-- 7i7 #aj percent of the average amount of deposits held by such covered bank in the previous quarter2 or 7ii7 #ajj1jjj1jjj4 7#c7 ,interest 7,a7 ,in general ,each eligible custodial entity designated by the ,secretary shall-- 7i7 collect interest from each covered bank in which such custodial entity deposits funds pursuant to paragraph 7#b72 and 7ii7 disburse such interest to the ,secretary each month4 7,b7 ,interest rate ,the rate of any interest collected under this paragraph may not exceed #ej percent of the discount window primary credit interest rate most recently published on the ,federal ,reserve ,statistical ,release on selected interest rates 7daily or weekly71 commonly referred to as the ,h4#ae release 7commonly known as the ,federal funds rate74 7#d7 ,statements ,each eligible custodial entity designated by the ,secretary shall submit to the ,secretary monthly statements that include the total amount of funds deposited with1 and interest rate received from1 each covered bank by the eligible custodial entity on behalf of qualifying entities4 7#e7 ,records ,the ,secretary shall issue a quarterly report to ,congress and make publicly available a record identifying all covered banks participating in the ,program and amounts deposited under the ,program in covered banks4 7d7 ,requirements relating to deposits ,deposits made with covered banks under this section may not-- 7#a7 be considered by the ,corporation to be funds obtained1 directly or indirectly1 by or through any deposit broker for deposit into #a or more deposit accounts 7as described under section #bi of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahca;f772 or 7#b7 be subject to insurance fees from the ,corporation that are greater than insurance fees for typical demand deposits not obtained1 directly or indirectly1 by or through any deposit broker 7commonly known as core deposits74 7e7 ,modifications 7#a7 ,in general ,the ,secretary shall provide a #c-month period for public notice and comment before making any material change to the operation of the ,program4 7#b7 ,exception ,the requirements of paragraph 7#a7 shall not apply if the ,secretary makes a material change to the ,program to comply with safety and soundness standards or other law4 7f7 ,termination 7#a7 ,by covered bank ,a covered bank selected for participation in the ,program pursuant to subsection 7c7 may terminate participation in the ,program by providing the ,secretary a notification #fj days prior to termination4 7#b7 ,by ,secretary ,the ,secretary may terminate the participation of a covered bank in the ,program if the ,secretary determines the covered bank-- 7,a7 violated any terms of participation in the ,program2 7,b7 failed to comply with ,federal bank secrecy laws1 as documented in writing by the primary regulator of the covered bank2 7,c7 failed to remain well capitalized2 or 7,d7 failed comply with safety and soundness standards1 as documented in writing by the primary regulator of the covered bank4 7g7 ,definitions ,in this section3 7#a7 ,corporation ,the term ,corporation means the ,federal ,deposit ,insurance ,corporation4 7#b7 ,covered bank ,the term covered bank means a minority depository institution that is regulated by the ,corporation or the ,national ,credit ,union ,administration that is well capitalized 7as defined in section #ch7;b7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcao7b7774 7#c7 ,eligible custodial entity ,the term eligible custodial entity means-- 7,a7 an insured depository institution 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 7,b7 an insured credit union 7as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb772 or 7,c7 a well capitalized ,state-chartered trust company1 designated by the ,secretary under subsection 7c77#a74 7#d7 ,federal bank secrecy laws ,the term ,federal bank secrecy laws means-- 7,a7 section #ba of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7,b7 section #abc of ,public ,law #ia-ejh2 and 7,c7 subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code4 7#e7 ,qualifying account ,the term qualifying account means any account established in the ,department of the ,treasury that-- 7,a7 is controlled by the ,secretary2 and 7,b7 is expected to maintain a balance greater than #bjj1jjj1jjj for the following calendar month4 7#f7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 7#g7 ,well capitalized ,the term well capitalized has the meaning given in section #ch of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcao74 #aa4 ,establishment of ,financial ,agent ,partnership ,program 7a7 ,in general ,section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note7 is amended by adding at the end the following3 7d7 ,financial agent partnership program 7#a7 ,definitions ,in this subsection3 7,a7 ,financial agent ,the term financial agent means any national banking association designated by the ,secretary to be employed as a financial agent of the ,government4 7,b7 ,large financial institution ,the term large financial institution means any entity regulated by the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 or the ,national ,credit ,union ,administration that has total consolidated assets of not less than #ej1jjj1jjj1jjj4 7,c7 ,small community financial institution ,the term small community financial institution means any financial institution that-- 7i7 has total consolidated assets of less than #c1jjj1jjj1jjj2 7ii7 is an entity regulated by the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 or the ,national ,credit ,union ,administration2 and 7iii7 is-- 7,i7 a community development financial institution1 as defined in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb72 or 7,,ii7 a minority depository institution1 as defined in subsection 7b74 7,d7 ,program ,the term ,program means the ,financial ,agent ,partnership ,program established under paragraph 7#b74 7,e7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 7#b7 ,establishment ,the ,secretary shall establish a program to be known as the ,financial ,agent ,partnership ,program under which a financial agent designated by the ,secretary or a large financial institution may serve as a partner1 under guidance or regulations prescribed by the ,secretary1 and at the request of a small community financial institution1 to allow the small community financial institution-- 7,a7 to be prepared to perform as a financial agent2 7,b7 to improve capacity to provide services to the customers of the institution2 and 7,c7 to participate in contracts awarded by the ,secretary under the ,national ,bank ,acts of #ahfc and #ahfd4 7#c7 ,financial partnerships 7,a7 ,in general ,any large financial institution participating in a program with the ,treasury1 if not already required to include a small community financial institution1 shall offer not more than #e percent of every contract under that program to a small community financial institution4 7,b7 ,acceptance of risk ,as a requirement of participation in any financial arrangement under the ,program1 a small community financial institution shall accept the risk of the transaction equivalent to the percentage of any fee the institution receives under the ,program4 7,c7 ,partner ,a large financial institution partner may work with small community financial institutions1 if necessary1 to train professionals to understand any risks involved in a contract under the ,program4 7#d7 ,outreach ,the ,secretary shall-- 7,a7 issue guidance or regulations to establish a process under which a financial agent1 large financial institution1 or small community financial institution may participate in the ,program2 and 7,b7 not less frequently than once per year1 hold outreach events to promote the participation of financial agents1 large financial institutions1 and small community financial institutions in the ,program4 7#e7 ,report ,the ,office of ,minority and ,women ,inclusion of the ,department of the ,treasury shall include in the report submitted to ,congress under section #cdb7;e7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #edeb7;e77 information pertaining to the ,program1 including-- 7,a7 the number of financial agents1 large financial institutions1 and small community financial institutions participating in the ,program2 and 7,b7 the number of contracts awarded by the ,secretary where a small community financial institution participated in a financial agent agreement awarded to a large financial institution2 and 7,c7 the number of outreach events described in paragraph 7#d7 held during the year covered by such report4 4 7b7 ,effective date ,this section and the amendments made by this section shall take effect #ij days after the date of the enactment of this ,act4 #ab4 ,application of ,,cares ,act to low- and moderate-income community financial institutions ,title ,,iv of the ,,cares ,act 7,public ,law #aaf-acf7 is amended-- 7#a7 in section #djab7;b7-- 7,a7 in paragraph 7#b71 by striking ,the interim and inserting ,except as provided in paragraph 7#c71 the interim2 and 7,b7 by adding at the end the following3 7#c7 ,exception for low- and moderate-income community financial institutions ,notwithstanding paragraph 7#b71 with respect to a qualifying community bank that is a low- and moderate-income community financial institution1 the interim rule issued under paragraph 7#a7 shall be effective during the period beginning on the date on which the appropriate ,federal banking agencies issue the rule and ending on ,december #ca1 #bjbb4 2 and 7#b7 in section #djac7;a77#a7-- 7,a7 by striking means the period and inserting means-- 7,a7 except as provided in subparagraph 7,b71 the period 2 7,b7 in subparagraph 7,a71 as so designated1 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7,b7 with respect to a low- and moderate-income community financial institution1 the period beginning on ,march #a1 #bjbj1 and ending on ,december #ca1 #bjbb4 4 #ac4 ,submission of data relating to diversity by community development financial institutions ,section #ajd of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjc7 is amended by adding at the end the following3 7l7 ,submission of data relating to diversity 7#a7 ,definitions ,in this subsection-- 7,a7 the term executive officer has the meaning given the term in section #bcj4eja7;f7 of title #ag1 ,code of ,federal ,regulations1 as in effect on the date of enactment of this subsection2 and 7,b7 the term veteran has the meaning given the term in section #aja of title #ch1 ,united ,states ,code4 7#b7 ,submission of disclosure ,each ,fund applicant and recipient shall provide the following3 7,a7 ,data1 based on voluntary self-identification1 on the racial1 ethnic1 and gender composition of-- 7i7 the board of directors of the institution2 7ii7 nominees for the board of directors of the institution2 and 7iii7 the executive officers of the institution4 7,b7 ,the status of any member of the board of directors of the institution1 any nominee for the board of directors of the institution1 or any executive officer of the institution1 based on voluntary self-identification1 as a veteran4 7,c7 ,whether the board of directors of the institution1 or any committee of that board of directors1 has1 as of the date on which the institution makes a disclosure under this paragraph1 adopted any policy1 plan1 or strategy to promote racial1 ethnic1 and gender diversity among-- 7i7 the board of directors of the institution2 7ii7 nominees for the board of directors of the institution2 or 7iii7 the executive officers of the institution4 7#c7 ,annual report ,not later than #ah months after the date of enactment of this subsection1 and annually thereafter1 the ,fund shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives1 and make publicly available on the website of the ,fund1 a report on the data and trends of the diversity information made available pursuant to paragraph 7#b74 4 #ad4 ,reports ,the ,secretary shall provide to the appropriate committees of ,congress-- 7#a7 within #cj days of the end of each month commencing with the first month in which transactions are made under a program established under this ,act or the amendments made by this ,act1 a written report describing all of the transactions made during the reporting period pursuant to the authorities granted under this ,act or the amendments made by this ,act2 and 7#b7 after the end of ,march and the end of ,september1 commencing ,september #cj1 #bjba1 a written report on all projected costs and liabilities1 all operating expenses1 including compensation for financial agents1 and all transactions made by the ,community ,development ,financial ,institutions ,fund1 which shall include participating institutions and amounts each institution has received under each program described in paragraph 7#a74 #ae4 ,inspector ,general oversight 7a7 ,in general ,the ,inspector ,general of the ,department of the ,treasury shall conduct1 supervise1 and coordinate audits and investigations of any program established under this ,act or the amendments made by this ,act4 7b7 ,reporting ,the ,inspector ,general of the ,department of the ,treasury shall issue a report not less frequently than #b times per year to ,congress and the ,secretary of the ,treasury relating to the oversight provided by the ,office of the ,inspector ,general1 including any recommendations for improvements to the programs described in subsection 7a74 #af4 ,study and report with respect to impact of programs on low- and moderate-income and minority communities 7a7 ,study ,the ,secretary of the ,treasury shall conduct a study of the impact of the programs established under this ,act or any amendment made by this ,act on low- and moderate-income and minority communities4 7b7 ,report ,not later than #ah months after the date of enactment of this ,act1 the ,secretary shall submit to ,congress a report on the results of the study conducted pursuant to subsection 7a71 which shall include1 to the extent possible1 the results of the study disaggregated by ethnic group4 7c7 ,information provided to the ,secretary ,eligible institutions that participate in any of the programs described in subsection 7a7 shall provide the ,secretary of the ,treasury with such information as the ,secretary may require to carry out the study required by this section4