§ 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—
(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—
(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.