§ 1834b. Community development organizations
(a)
Community development organizations described
For purposes of this subtitle, any insured depository institution, or a qualified portion thereof, shall be treated as meeting the community development organization requirements of this section if—
(1)
the institution—
(A)
is a community development bank, or controls any community development bank, which meets the requirements of subsection (b) of this section;
(B)
controls any community development corporation, or maintains any community development unit within the institution, which meets the requirements of subsection (c) of this section;
(2)
except in the case of an institution which is a community development bank, the amount of the capital invested, in the form of debt or equity, by the institution in the community development organization referred to in paragraph (1) (or, in the case of any community development unit, the amount which the institution irrevocably makes available to such unit for the purposes described in paragraph (3)) is not less than the greater of—
(3)
the community development organization provides loans for residential mortgages, home improvement, and community development and other financial services, other than financing for the purchase of automobiles or extension of credit under any open-end credit plan (as defined in section
1602
(i) of title
15), to low- and moderate-income persons, nonprofit organizations, and small businesses located in qualified distressed communities in a manner consistent with the intent of this subtitle.
(b)
Community development bank requirements
A community development bank meets the requirements of this subsection if—
(1)
the community development bank has a 15-member advisory board designated as the “Community Investment Board” and consisting entirely of community leaders who—
(A)
shall be appointed initially by the board of directors of the community development bank and thereafter by the Community Investment Board from nominations received from the community; and
(B)
are appointed for a single term of 2 years, except that, of the initial members appointed to the Community Investment Board, 1/3 shall be appointed for a term of 8 months, 1/3 shall be appointed for a term of 16 months, and 1/3 shall be appointed for a term of 24 months, as designated by the board of directors of the community development bank at the time of the appointment;
(c)
Community development corporation requirements
Any community development corporation, or community development unit within any insured depository institution meets the requirements of this subsection if the corporation or unit provides the same or greater, as determined by the appropriate Federal banking agency, community participation in the activities of such corporation or unit as would be provided by a Community Investment Board under subsection (b) of this section if such corporation or unit were a community development bank.
(d)
Adequate dispersal requirement
The appropriate Federal banking agency may approve the establishment of a community development organization under this subtitle only upon finding that the distressed community is not adequately served by an existing community development organization.
(e)
Definitions
For purposes of this section—
(2)
Community development organization
The term “community development organization” means any community development bank, community development corporation, community development unit within any insured depository institution, or community development credit union.