r/title-12-BANKS-AND-BANKING wiki — defined terms

“original source” applies in that section

the term “original source” means a person who has direct and independent knowledge of the information contained in the declaration and who voluntarily provided the information to the government prior to the disclosure.

“account” applies throughout its chapter

The term “account” means any account intended for use by and generally used by consumers primarily for personal, family, or household purposes that is offered by a depository institution into which a consumer deposits funds, including demand accounts, time accounts, negotiable order of withdrawal accounts, and share draft accounts. (2) Annual percentage yield

“annual percentage yield” applies throughout its chapter

The term “annual percentage yield” means the total amount of interest that would be received on a $100 deposit, based on the annual rate of simple interest and the frequency of compounding for a 365-day period, expressed as a percentage calculated by a method which shall be prescribed by the Bureau in regulations. (3) Annual rate of simple interest

“annual rate of simple interest” applies throughout its chapter

The term “annual rate of simple interest”— (A) means the annualized rate of interest paid with respect to each compounding period, expressed as a percentage; and (B) may be referred to as the “annual percentage rate”. (4) Bureau

“Bureau” applies throughout its chapter

The term “Bureau” means the Bureau of Consumer Financial Protection. (5) Deposit broker

“deposit broker” applies throughout its chapter

The term “deposit broker”— (A) has the meaning given to such term in section 1831f(f)(1) 1 of this title; and (B) includes any person who solicits any amount from any other person for deposit in an insured depository institution. (6) Depository institution

“depository institution” applies throughout its chapter

The term “depository institution” has the meaning given such term in clauses (i) through (vi) of section 461(b)(1)(A) of this title , but does not include any nonautomated credit union that was not required to comply with the requirements of this chapter 1 as of September 30, 1996 , pursuant to the determination of the National Credit Union Administration Bureau. 2 (7) Interest

“interest” applies throughout its chapter

The term “interest” includes dividends paid with respect to share draft accounts which are accounts within the meaning of paragraph (3). (8) Multiple rate account

“multiple rate account” applies throughout its chapter

The term “multiple rate account” means any account that has 2 or more annual rates of simple interest which take effect at the same time or in succeeding periods and which are known at the time of disclosure.

“broker or dealer” applies throughout its subchapter

The term “broker or dealer” means— (A) any company that is registered or licensed under Federal or State law to engage in the business of brokering, underwriting, or dealing in securities in the United States; and (B) to the extent consistent with this title, 1 as determined by the Board of Governors of the Federal Reserve System, any company that is an affiliate of a company described in subparagraph (A) and that is engaged in the business of entering into netting contracts. (2) Clearing organization

“clearing organization” applies throughout its subchapter

The term “clearing organization” means a clearinghouse, clearing association, clearing corporation, or similar organization— (A) that provides clearing, netting, or settlement services for its members and— (i) in which all members other than the clearing organization itself are financial institutions or other clearing organizations; or (ii) which is registered as a clearing agency under the Securities Exchange Act of 1934 [ 15 U.S.C.

“covered clearing obligation” applies throughout its subchapter

The term “covered clearing obligation” means an obligation of a member of a clearing organization to make payment to another member of a clearing organization, subject to a netting contract. (4) Covered contractual payment entitlement

“covered contractual payment entitlement” applies throughout its subchapter

The term “covered contractual payment entitlement” means— (A) an entitlement of a financial institution to receive a payment, subject to a netting contract from another financial institution; and (B) an entitlement of a member of a clearing organization to receive payment, subject to a netting contract, from another member of a clearing organization of a covered clearing obligation. (5) Covered contractual payment obligation

“covered contractual payment obligation” applies throughout its subchapter

The term “covered contractual payment obligation” means— (A) an obligation of a financial institution to make payment, subject to a netting contract to another financial institution; and (B) a covered clearing obligation. (6) Depository institution

“depository institution” applies throughout its subchapter

The term “depository institution” means— (A) a depository institution as defined in section 19(b)(1)(A) of the Federal Reserve Act [ 12 U.S.C. 461(b)(1)(A) ] (other than clause (vii)); (B) an uninsured national bank or an uninsured State bank that is a member of the Federal Reserve System, if the national bank or State member bank is not eligible to make application to become an insured bank under section 1815 of this title ; (C) a branch or agency of a foreign bank, a foreign bank and any branch or agency of the foreign bank, or the foreign bank that established the branch or agency, as those terms are defined in section 1(b) of the International Banking Act of 1978 [ 12 U.S.C.

“failed financial institution” applies throughout its subchapter

The term “failed financial institution” means a financial institution that— (A) fails to satisfy a covered contractual payment obligation when due; (B) has commenced or had commenced against it insolvency, liquidation, reorganization, receivership (including the appointment of a receiver), conservatorship, or similar proceedings; or (C) has generally ceased to meet its obligations when due. (8) Failed member

“failed member” applies throughout its subchapter

The term “failed member” means any member that— (A) fails to satisfy a covered clearing obligation when due, (B) has commenced or had commenced against it insolvency, liquidation, reorganization, receivership (including the appointment of a receiver), conservatorship, or similar proceedings, or (C) has generally ceased to meet its obligations when due. (9) Financial institution

“financial institution” applies throughout its subchapter

The term “financial institution” means a broker or dealer, a depository institution, a futures commission merchant, or any other institution as determined by the Board of Governors of the Federal Reserve System. (10) Futures commission merchant

“futures commission merchant” applies throughout its subchapter

The term “futures commission merchant” means a company that is registered or licensed under Federal law to engage in the business of selling futures and options in commodities. (11) Member

“member” applies throughout its subchapter

The term “member” means a member of or participant in a clearing organization, and includes the clearing organization and any other clearing organization with which such clearing organization has a netting contract. (12) Net entitlement

“net entitlement” applies throughout its subchapter

The term “net entitlement” means the amount by which the covered contractual payment entitlements of a financial institution or member exceed the covered contractual payment obligations of the institution or member after netting under a netting contract. (13) Net obligation

“net obligation” applies throughout its subchapter

The term “net obligation” means the amount by which the covered contractual payment obligations of a financial institution or member exceed the covered contractual payment entitlements of the institution or member after netting under a netting contract. (14) Netting contract (A) In general

“netting contract” applies throughout its subchapter

The term “netting contract”— (i) means a contract or agreement between 2 or more financial institutions, clearing organizations, or members that provides for netting present or future payment obligations or payment entitlements (including liquidation or close out values relating to such obligations or entitlements) among the parties to the agreement; and (ii) includes the rules of a clearing organization. (B) Invalid contracts not included The term “netting contract” does not include any contract or agreement that is invalid under or precluded by Federal law. (15) Payment

“payment” applies throughout its subchapter

The term “payment” means a payment of United States dollars, another currency, or a composite currency, and a noncash delivery, including a payment or delivery to liquidate an unmatured obligation.

“affiliate” applies throughout its chapter

the term “affiliate” means any entity that controls, is controlled by, or is under common control with, an enterprise. (2) Agency

“Agency” applies throughout its chapter

The term “Agency” means the Federal Housing Finance Agency established under section 4511 of this title . (3) Authorizing statutes

“authorizing statutes” applies throughout its chapter

The term “authorizing statutes” means— (A) the Federal National Mortgage Association Charter Act; (B) the Federal Home Loan Mortgage Corporation Act; and (C) the Federal Home Loan Bank Act. (4) Board

“Board” applies throughout its chapter

The term “Board” means the Federal Housing Finance Oversight Board established under section 4513a of this title . (5) Capital distribution (A) In general

“capital distribution” applies throughout its chapter

The term “capital distribution” means— (i) any dividend or other distribution in cash or in kind made with respect to any shares of, or other ownership interest in, an enterprise, except a dividend consisting only of shares of the enterprise; (ii) any payment made by an enterprise to repurchase, redeem, retire, or otherwise acquire any of its shares, including any extension of credit made to finance an acquisition by the enterprise of such shares; and (iii) any transaction that the Director determines by regulation to be, in substance, the distribution of capital.

“compensation” applies throughout its chapter

The term “compensation” means any payment of money or the provision of any other thing of current or potential value in connection with employment. (7) Core capital

“conforming mortgage” applies throughout its chapter

The term “conforming mortgage” means, with respect to an enterprise, a conventional mortgage having an original principal obligation that does not exceed the dollar amount limitation in effect at the time of such origination and applicable to such mortgage, under, as applicable— (A) section 302(b)(2) of the Federal National Mortgage Association Charter Act [ 12 U.S.C. 1717(b)(2) ]; or (B) section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act [ 12 U.S.C. 1454(a)(2) ]. (27) Extremely low-income

“core capital” applies throughout its chapter

The term “core capital” means, with respect to an enterprise, the sum of the following (as determined in accordance with generally accepted accounting principles): (A) The par or stated value of outstanding common stock. (B) The par or stated value of outstanding perpetual, noncumulative preferred stock. (C) Paid-in capital. (D) Retained earnings. The core capital of an enterprise shall not include any amounts that the enterprise could be required to pay, at the option of investors, to retire capital instruments. (8) Default; in danger of default (A) Default

“default” applies throughout its chapter

The term “default” means, with respect to a regulated entity, any adjudication or other official determination by any court of competent jurisdiction, or the Agency, pursuant to which a conservator, receiver, limited-life regulated entity, or legal custodian is appointed for a regulated entity. (B) In danger of default

“Director” applies throughout its chapter

The term “Director” means the Director of the Federal Housing Finance Agency. (10) Enterprise

“enterprise” applies throughout its chapter

The term “enterprise” means— (A) the Federal National Mortgage Association and any affiliate thereof; and (B) the Federal Home Loan Mortgage Corporation and any affiliate thereof. (11) Entity-affiliated party

“entity-affiliated party” applies throughout its chapter

The term “entity-affiliated party” means— (A) any director, officer, employee, or controlling stockholder of, or agent for, a regulated entity; (B) any shareholder, affiliate, consultant, or joint venture partner of a regulated entity, and any other person, as determined by the Director (by regulation or on a case-by-case basis) that participates in the conduct of the affairs of a regulated entity, provided that a member of a Federal Home Loan Bank shall not be deemed to have participated in the affairs of that Bank solely by virtue of being a shareholder of, and obtaining advances from, that Bank; (C) any independent contractor for a regulated entity (including any attorney, appraiser, or …

“executive officer” applies throughout its chapter

The term “executive officer” means, with respect to an enterprise, the chairman of the board of directors, chief executive officer, chief financial officer, president, vice chairman, any executive vice president, and any senior vice president in charge of a principal business unit, division, or function. (13) Limited-life regulated entity

“extremely low-income” applies throughout its chapter

The term “extremely low-income” means— (A) in the case of owner-occupied units, income not in excess of 30 percent of the area median income; and (B) in the case of rental units, income not in excess of 30 percent of the area median income, with adjustments for smaller and larger families, as determined by the Director. (28) Low-income area

“in danger of default” applies throughout its chapter

The term “in danger of default” means a regulated entity with respect to which, in the opinion of the Agency— (i) the regulated entity is not likely to be able to pay the obligations of the regulated entity in the normal course of business; or (ii) the regulated entity— (I) has incurred or is likely to incur losses that will deplete all or substantially all of its capital; and (II) there is no reasonable prospect that the capital of the regulated entity will be replenished. (9) Director

“limited-life regulated entity” applies throughout its chapter

The term “limited-life regulated entity” means an entity established by the Agency under section 4617(i) of this title with respect to a Federal Home Loan Bank in default or in danger of default or with respect to an enterprise in default or in danger of default. (14) Low-income

“low-income” applies throughout its chapter

The term “low-income” means— (A) in the case of owner-occupied units, income not in excess of 80 percent of area median income; and (B) in the case of rental units, income not in excess of 80 percent of area median income, with adjustments for smaller and larger families, as determined by the Director. (15) Median income

“low-income area” applies throughout its chapter

The term “low-income area” means a census tract or block numbering area in which the median income does not exceed 80 percent of the median income for the area in which such census tract or block numbering area is located, and, for the purposes of section 4562(a)(1)(B) of this title , shall include families having incomes not greater than 100 percent of the area median income who reside in minority census tracts and shall include families having incomes not greater than 100 percent of the area median income who reside in designated disaster areas. (29) Minority census tract

“median income” applies throughout its chapter

The term “median income” means, with respect to an area, the unadjusted median family income for the area, as determined and published annually by the Director. (16) Moderate-income

“minority census tract” applies throughout its chapter

The term “minority census tract” means a census tract that has a minority population of at least 30 percent and a median family income of less than 100 percent of the area family median income. (30) Shortage of standard rental units both affordable and available to extremely low-income renter households (A) In general

“moderate-income” applies throughout its chapter

The term “moderate-income” means— (A) in the case of owner-occupied units, income not in excess of area median income; and (B) in the case of rental units, income not in excess of area median income, with adjustments for smaller and larger families, as determined by the Director. (17) Mortgage purchases

“mortgage purchases” applies throughout its chapter

The term “mortgage purchases” includes mortgages purchased for portfolio or securitization. (18) Multifamily housing

“multifamily housing” applies throughout its chapter

The term “multifamily housing” means a residence consisting of more than 4 dwelling units. (19) Office of Finance

“Office of Finance” applies throughout its chapter

The term “Office of Finance” means the Office of Finance of the Federal Home Loan Bank System (or any successor thereto). (20) Regulated entity

“regulated entity” applies throughout its chapter

The term “regulated entity” means— (A) the Federal National Mortgage Association and any affiliate thereof; (B) the Federal Home Loan Mortgage Corporation and any affiliate thereof; and (C) any Federal Home Loan Bank. (21) Single family housing

“single family housing” applies throughout its chapter

The term “single family housing” means a residence consisting of 1 to 4 dwelling units. (22) State

“State” applies throughout its chapter

The term “State” means the States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, the Trust Territory of the Pacific Islands, and any other territory or possession of the United States. (23) Total capital

“total capital” applies throughout its chapter

The term “total capital” means, with respect to an enterprise, the sum of the following: (A) The core capital of the enterprise; 1 (B) A general allowance for foreclosure losses, which— (i) shall include an allowance for portfolio mortgage losses, an allowance for nonreimbursable foreclosure costs on government claims, and an allowance for liabilities reflected on the balance sheet for the enterprise for estimated foreclosure losses on mortgage-backed securities; and (ii) shall not include any reserves of the enterprise made or held against specific assets.

“very low-income” applies throughout its chapter

The term “very low-income” means— (i) in the case of owner-occupied units, families having incomes not greater than 50 percent of the area median income; and (ii) in the case of rental units, families having incomes not greater than 50 percent of the area median income, with adjustments for smaller and larger families, as determined by the Director. (B) Rule of construction For purposes of section 2 4568 and 4569 of this title,

“violation” applies throughout its chapter

The term “violation” includes any action (alone or in combination with another or others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation. (26) Conforming mortgage

“total assets” applies in that section

the term “total assets” means, with respect to an enterprise, the sum of— (A) on-balance-sheet assets of the enterprise, as determined in accordance with generally accepted accounting principles; (B) the unpaid principal balance of outstanding mortgage-backed securities issued or guaranteed by the enterprise that are not included in subparagraph (A); and (C) other off-balance-sheet obligations as determined by the Director.

“golden parachute payment” applies in that section

the term “golden parachute payment” means any payment (or any agreement to make any payment) in the nature of compensation by any regulated entity for the benefit of any affiliated party pursuant to an obligation of such regulated entity that— (i) is contingent on the termination of such party’s affiliation with the regulated entity; and (ii) is received on or after the date on which— (I) the regulated entity became insolvent; (II) any conservator or receiver is appointed for such regulated entity; or (III) the Director determines that the regulated entity is in a troubled condition (as defined in the regulations of the Director).

“indemnification payment” applies in that section

the term “indemnification payment” means any payment (or any agreement to make any payment) by any regulated entity for the benefit of any person who is or was an affiliated party, to pay or reimburse such person for any liability or legal expense with regard to any administrative proceeding or civil action instituted by the Agency which results in a final order under which such person— (i) is assessed a civil money penalty; (ii) is removed or prohibited from participating in conduct of the affairs of the regulated entity; or (iii) is required to take any affirmative action to correct certain conditions resulting from violations or practices, by order of the Director.

“liability or legal expense” applies in that section

The term “liability or legal expense” means— (i) any legal or other professional expense incurred in connection with any claim, proceeding, or action; (ii) the amount of, and any cost incurred in connection with, any settlement of any claim, proceeding, or action; and (iii) the amount of, and any cost incurred in connection with, any judgment or penalty imposed with respect to any claim, proceeding, or action. (C) Payment

“payment” applies in that section

The term “payment” includes— (i) any direct or indirect transfer of any funds or any asset; and (ii) any segregation of any funds or assets for the purpose of making, or pursuant to an agreement to make, any payment after the date on which such funds or assets are segregated, without regard to whether the obligation to make such payment is contingent on— (I) the determination, after such date, of the liability for the payment of such amount; or (II) the liquidation, after such date, of the amount of such payment.

“identifiable form” applies in that section

the term “identifiable form” means any representation of information that permits the identity of a borrower to which the information relates to be reasonably inferred by either direct or indirect means.

“average fees” applies in that section

The term “average fees” means the average contractual fee rate of single-family guaranty arrangements by an enterprise entered into during 2011, plus the recognition of any up-front cash payments over an estimated average life, expressed in terms of basis points. Such definition shall be interpreted in a manner consistent with the annual report on guarantee fees by the Federal Housing Finance Agency.

“guarantee fee” applies in that section

The term “guarantee fee”— (A) means a fee described in subsection (b); and (B) includes— (i) the guaranty fee charged by the Federal National Mortgage Association with respect to mortgage-backed securities; and (ii) the management and guarantee fee charged by the Federal Home Loan Mortgage Corporation with respect to participation certificates. (2) Average fees

“cost of construction” applies in that section

the term “cost of construction”— (I) means the cost of construction or building rehabilitation in the State relative to the national cost of construction or building rehabilitation; and (II) shall be calculated such that values higher than 1.0 indicate that the State’s construction costs are higher than the national average, a value of 1.0 indicates that the State’s construction costs are exactly the same as the national average, and values lower than 1.0 indicate that the State’s cost of construction are lower than the national average. (C) Priority The formula required under subparagraph (A) shall give priority emphasis and consideration to the factor described in subparagraph (B)(i).

“extremely low-income renter household” applies in that section

The term “extremely low-income renter household” means a household whose income is not in excess of 30 percent of the area median income, with adjustments for smaller and larger families, as determined by the Secretary. (2) Recipient

“recipient” applies in that section

The term “recipient” means an individual or entity that receives assistance from a State or State designated entity from amounts made available to the State or State designated entity under this section. (3) Shortage of standard rental units both affordable and available to extremely low-income renter households (A) In general

“very low-income family” applies in that section

The term “very low-income family” has the meaning given such term in section 4502 of this title , except that such term includes any family that resides in a rural area that has an income that does not exceed the poverty line (as such term is defined in section 9902(2) of title 42 , including any revision required by such section) applicable to a family of the size involved. (6) Very low-income renter households

“very low-income renter households” applies in that section

The term “very low-income renter households” means a household whose income is in excess of 30 percent but not greater than 50 percent of the area median income, with adjustments for smaller and larger families, as determined by the Secretary. (g) Regulations (1) In general The Secretary shall issue regulations to carry out this section.

“administrative expenses of the receiver” applies in that section

the term “administrative expenses of the receiver” includes— (A) the actual, necessary costs and expenses incurred by the receiver in preserving the assets of a failed regulated entity or liquidating or otherwise resolving the affairs of a failed regulated entity; and (B) any obligations that the receiver determines are necessary and appropriate to facilitate the smooth and orderly liquidation or other resolution of the regulated entity.

“business day” applies in that section

the term “business day” means any day other than any Saturday, Sunday, or any day on which either the New York Stock Exchange or the Federal Reserve Bank of New York is closed. (11) Disaffirmance or repudiation of qualified financial contracts In exercising the rights of disaffirmance or repudiation of a conservator or receiver with respect to any qualified financial contract to which a regulated entity is a party, the conservator or receiver for such institution shall either— (A) disaffirm or repudiate all qualified financial contracts between— (i) any person or any affiliate of such person; and (ii) the regulated entity in default; or (B) disaffirm or repudiate none of the qualified …

“commodity contract” applies in that section

The term “commodity contract” means— (I) with respect to a futures commission merchant, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade; (II) with respect to a foreign futures commission merchant, a foreign future; (III) with respect to a leverage transaction merchant, a leverage transaction; (IV) with respect to a clearing organization, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization, or commodity option traded on, or subject to the rules of, a contract market or …

“forward contract” applies in that section

The term “forward contract” means— (I) a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade, or product or byproduct thereof, with a maturity date more than 2 days after the date on which the contract is entered into, including a repurchase transaction, reverse repurchase transaction, consignment, lease, swap, hedge transaction, deposit, loan, option, allocated transaction, unallocated transaction, or any other similar agreement; (II) any combination of agreements or transactions referred to in …

“qualified financial contract” applies in that section

The term “qualified financial contract” means any securities contract, commodity contract, forward contract, repurchase agreement, swap agreement, and any similar agreement that the Agency determines by regulation, resolution, or order to be a qualified financial contract for purposes of this paragraph. (ii) Securities contract

“securities contract” applies in that section

The term “securities contract”— (I) means a contract for the purchase, sale, or loan of a security, a certificate of deposit, a mortgage loan, or any interest in a mortgage loan, a group or index of securities, certificates of deposit, or mortgage loans or interests therein (including any interest therein or based on the value thereof) or any option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option, and including any repurchase or reverse repurchase transaction on any such security, certificate of deposit, mortgage loan, interest, group or index, or option; (II) does not include any …

“swap agreement” applies in that section

The term “swap agreement” means— (I) any agreement, including the terms and conditions incorporated by reference in any such agreement, which is an interest rate swap, option, future, or forward agreement, including a rate floor, rate cap, rate collar, cross-currency rate swap, and basis swap; a spot, same day-tomorrow, tomorrow-next, forward, or other foreign exchange or precious metals agreement; a currency swap, option, future, or forward agreement; an equity index or equity swap, option, future, or forward agreement; a debt index or debt swap, option, future, or forward agreement; a total return, credit spread or credit swap, option, future, or forward agreement; a commodity index or …

“transfer” applies in that section

The term “transfer” means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with property or with an interest in property, including retention of title as a security interest and foreclosure of the equity of redemption of the regulated entity.

“walkaway clause” applies in that section

the term “walkaway clause” means a provision in a qualified financial contract that, after calculation of a value of a party’s position or an amount due to or from 1 of the parties in accordance with its terms upon termination, liquidation, or acceleration of the qualified financial contract, either does not create a payment obligation of a party or extinguishes a payment obligation of a party in whole or in part solely because of the status of such party as a nondefaulting party.

“Administrator” applies throughout its subchapter

The term “Administrator” means the Administrator of the Fund appointed under section 4703(b) of this title . (2) Appropriate Federal banking agency

“affiliate” applies throughout its subchapter

The term “affiliate” has the same meaning as in section 1841(k) of this title . (4) Board

“appropriate Federal banking agency” applies throughout its subchapter

The term “appropriate Federal banking agency” has the same meaning as in section 1813 of this title , and also includes the National Credit Union Administration Board with respect to insured credit unions. (3) Affiliate

“Board” applies throughout its subchapter

The term “Board” means the Community Development Advisory Board established under section 4703(d) of this title . (5) Community development financial institution (A) In general

“community development financial institution” applies throughout its subchapter

The term “community development financial institution” means a person (other than an individual) that— (i) has a primary mission of promoting community development; (ii) serves an investment area or targeted population; (iii) provides development services in conjunction with equity investments or loans, directly or through a subsidiary or affiliate; (iv) maintains, through representation on its governing board or otherwise, accountability to residents of its investment area or targeted population; and (v) is not an agency or instrumentality of the United States, or of any State or political subdivision of a State.

“community partner” applies throughout its subchapter

The term “community partner” means a person (other than an individual) that provides loans, equity investments, or development services, including a depository institution holding company, an insured depository institution, an insured credit union, a nonprofit organization, a State or local government agency, a quasi-governmental entity, and an investment company authorized to operate pursuant to the Small Business Investment Act of 1958 [ 15 U.S.C. 661 et seq.]. (7) Community partnership

“community partnership” applies throughout its subchapter

The term “community partnership” means an agreement between a community development financial institution and a community partner to provide development services, loans, or equity investments, to an investment area or targeted population. (8) Depository institution holding company

“depository institution holding company” applies throughout its subchapter

The term “depository institution holding company” has the same meaning as in section 1813 of this title . (9) Development services

“development services” applies throughout its subchapter

The term “development services” means activities that promote community development and are integral to lending or investment activities, including— (A) business planning; (B) financial and credit counseling; and (C) marketing and management assistance. (10) Fund

“Fund” applies throughout its subchapter

The term “Fund” means the Community Development Financial Institutions Fund established under section 4703(a) of this title . (11) Indian reservation

“Indian reservation” applies throughout its subchapter

The term “Indian reservation” has the same meaning as in section 1903(10) of title 25 , and shall include land held by incorporated Native groups, regional corporations, and village corporations, as defined in or established pursuant to the Alaska Native Claims Settlement Act [ 43 U.S.C. 1601 et seq.], public domain Indian allotments, and former Indian reservations in the State of Oklahoma. (12) Indian tribe

“Indian tribe” applies throughout its subchapter

The term “Indian tribe” means any Indian tribe, band, pueblo, nation, or other organized group or community, including any Alaska Native village or regional or village corporation, as defined in or established pursuant to the Alaska Native Claims Settlement Act [ 43 U.S.C. 1601 et seq.], which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. (13) Insured community development financial institution

“insured community development financial institution” applies throughout its subchapter

The term “insured community development financial institution” means any community development financial institution that is an insured depository institution or an insured credit union. (14) Insured credit union

“insured credit union” applies throughout its subchapter

The term “insured credit union” has the same meaning as in section 1752(7) of this title . (15) Insured depository institution

“insured depository institution” applies throughout its subchapter

The term “insured depository institution” has the same meaning as in section 1813 of this title . (16) Investment area

“investment area” applies throughout its subchapter

The term “investment area” means a geographic area (or areas) including an Indian reservation that— (A) (i) meets objective criteria of economic distress developed by the Fund, which may include the percentage of low-income families or the extent of poverty, the rate of unemployment or underemployment, rural population outmigration, lag in population growth, and extent of blight and disinvestment; and (ii) has significant unmet needs for loans or equity investments; or (B) encompasses or is located in an empowerment zone or enterprise community designated under section 1391 of title 26 . (17) Low-income

“low-income” applies throughout its subchapter

The term “low-income” means having an income, adjusted for family size, of not more than— (A) for metropolitan areas, 80 percent of the area median income; and (B) for nonmetropolitan areas, the greater of— (i) 80 percent of the area median income; or (ii) 80 percent of the statewide nonmetropolitan area median income. (18) State

“State” applies throughout its subchapter

The term “State” has the same meaning as in section 1813 of this title . (19) Subsidiary

“subsidiary” applies throughout its subchapter

The term “subsidiary” has the same meaning as in section 1813 of this title , except that a community development financial institution that is a corporation shall not be considered to be a subsidiary of any insured depository institution or depository institution holding company that controls less than 25 percent of any class of the voting shares of such corporation, and does not otherwise control in any manner the election of a majority of the directors of the corporation. (20) Targeted population

“targeted population” applies throughout its subchapter

The term “targeted population” means individuals, or an identifiable group of individuals, including an Indian tribe, who— (A) are low-income persons; or (B) otherwise lack adequate access to loans or equity investments. (21) Training program

“training program” applies throughout its subchapter

The term “training program” means the training program operated by the Fund under section 4708 of this title .

“transition period” applies in that section

the term “transition period” means the period beginning on September 23, 1994 , and ending on the date on which the Administrator is appointed.

“bank holding company” applies in that section

the term “bank holding company” has the meaning given the term in section 1841 of this title ;

“controlling interest” applies in that section

The term “controlling interest” means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity. (ii) Covered entity

“covered entity” applies in that section

The term “covered entity” means an entity in which a covered individual directly or indirectly holds a controlling interest. For the purpose of determining whether an entity is a covered entity, the securities owned, controlled, or held by 2 or more individuals who are related as described in clause (iii)(II) shall be aggregated. (iii) Covered individual

“covered individual” applies in that section

The term “covered individual” means— (I) the President, the Vice President, the head of an Executive department, or a Member of Congress; and (II) the spouse, child, son-in-law, or daughter-in-law, as determined under applicable common law, of an individual described in subclause (i). (iv) Executive department

“eligible institution” applies in that section

the term “eligible institution” means any low- and moderate-income community financial institution that is eligible to participate in the Program;

“Emergency Capital Investment Fund” applies in that section

the term “Emergency Capital Investment Fund” means the Emergency Capital Investment Fund established under subsection (b);

“equity interest” applies in that section

The term “equity interest” means— (I) a share in an entity, without regard to whether the share is— (aa) transferable; or (bb) classified as stock or anything similar; (II) a capital or profit interest in a limited liability company or partnership; or (III) a warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share or interest described in subclause (I) or (II), respectively. (B) Prohibition Notwithstanding any other provision of this section, no covered entity may be eligible for any investment made under the Program.

“Executive department” applies in that section

The term “Executive department” has the meaning given the term in section 101 of title 5 . (v) Member of Congress

“low- and moderate-income community financial institution” applies in that section

the term “low- and moderate-income community financial institution” means any financial institution that is— (A) (i) a community development financial institution; or (ii) a minority depository institution; and (B) (i) an insured depository institution that is not controlled by a bank holding company or savings and loan holding company that is also an eligible institution; (ii) a bank holding company; (iii) a savings and loan holding company; or (iv) a federally insured credit union;

“member of Congress” applies in that section

The term “member of Congress” means a member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner from Puerto Rico. (vi) Equity interest

“minority” applies in that section

the term “minority” means any Black American, Native American, Hispanic American, Asian American, Native Alaskan, Native Hawaiian, or Pacific Islander;

“minority depository institution” applies in that section

the term “minority depository institution” means an entity that is— (A) a minority depository institution, as defined in section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ( 12 U.S.C. 1463 note); or (B) considered to be a minority depository institution by— (i) the appropriate Federal banking agency; or (ii) the National Credit Union Administration, in the case of an insured credit union; or (C) listed in the Federal Deposit Insurance Corporation’s Minority Depository Institutions List published for the Third Quarter 2020. 1;

“Program” applies in that section

the term “Program” means the Emergency Capital Investment Program established under subsection (b);

“savings and loan holding company” applies in that section

the term “savings and loan holding company” has the meaning given the term under section 1467a(a) of this title ; and (9) the “Secretary” means the Secretary of the Treasury. (b) Establishment (1) Fund established There is established in the Treasury of the United States a fund to be known as the “Emergency Capital Investment Fund”, which shall be administered by the Secretary.

“eligible community development financial institution” applies in that section

The term “eligible community development financial institution” means a community development financial institution (as described in section 1805.201 of title 12, Code of Federal Regulations, or any successor thereto) certified by the Secretary that has applied to a qualified issuer for, or been granted by a qualified issuer, a loan under the Program. (2) Eligible community or economic development purpose

“eligible community or economic development purpose” applies in that section

The term “eligible community or economic development purpose”— (A) means any purpose described in section 4707(b) of this title ; and (B) includes the provision of community or economic development in low-income or underserved rural areas. (3) Guarantee

“guarantee” applies in that section

The term “guarantee” means a written agreement between the Secretary and a qualified issuer (or trustee), pursuant to which the Secretary ensures repayment of the verifiable losses of principal, interest, and call premium, if any, on notes or bonds issued by a qualified issuer to finance or refinance loans to eligible community development financial institutions. (4) Loan

“loan” applies in that section

The term “loan” means any credit instrument that is extended under the Program for any eligible community or economic development purpose. (5) Master servicer (A) In general

“master servicer” applies in that section

The term “master servicer” means any entity approved by the Secretary in accordance with subparagraph (B) to oversee the activities of servicers, as provided in subsection (f)(4). (B) Approval criteria for master servicers The Secretary shall approve or deny any application to become a master servicer under the Program not later than 90 days after the date on which all required information is submitted to the Secretary, based on the capacity and experience of the applicant in— (i) loan administration, servicing, and loan monitoring; (ii) managing regional or national loan intake, processing, or servicing operational systems and infrastructure; (iii) managing regional or national originator …

“Program” applies in that section

The term “Program” means the guarantee Program for bonds and notes issued for eligible community or economic development purposes established under this section. (7) Program administrator

“Program administrator” applies in that section

The term “Program administrator” means an entity designated by the issuer to perform administrative duties, as provided in subsection (f)(2). (8) Qualified issuer (A) In general

“qualified issuer” applies in that section

The term “qualified issuer” means a community development financial institution (or any entity designated to issue notes or bonds on behalf of such community development financial institution) that meets the qualification requirements of this paragraph. (B) Approval criteria for qualified issuers (i) In general The Secretary shall approve a qualified issuer for a guarantee under the Program in accordance with the requirements of this paragraph, and such additional requirements as the Secretary may establish, by regulation.

“Secretary” applies in that section

The term “Secretary” means the Secretary of the Treasury. (10) Servicer

“servicer” applies in that section

The term “servicer” means an entity designated by the issuer to perform various servicing duties, as provided in subsection (f)(3). (b) Guarantees authorized The Secretary shall guarantee payments on bonds or notes issued by any qualified issuer, if the proceeds of the bonds or notes are used in accordance with this section to make loans to eligible community development financial institutions— (1) for eligible community or economic development purposes; or (2) to refinance loans or notes issued for such purposes.

“small dollar loan program” applies in that section

the term “small dollar loan program” means a loan program wherein a community development financial institution or any partnership between or among such institutions offers loans to consumers that— (A) are made in amounts not exceeding $2,500; (B) must be repaid in installments; (C) have no pre-payment penalty; (D) the institution has to report payments regarding the loan to at least 1 of the consumer reporting agencies that compiles and maintains files on consumers on a nationwide basis; and (E) meet any other affordability requirements as may be established by the Administrator.

“appropriate Federal banking agency” applies throughout its subchapter

the term “appropriate Federal banking agency”— (A) has the same meaning as in section 1813 of this title ; and (B) includes the National Credit Union Administration Board in the case of any credit union the deposits of which are insured in accordance with the Federal Credit Union Act [ 12 U.S.C. 1751 et seq.];

“early loan” applies throughout its subchapter

the term “early loan” means a loan enrolled at a time when the aggregate covered amount of loans previously enrolled under the Program by a particular participating financial institution is less than $5,000,000;

“enrolled loan” applies throughout its subchapter

the term “enrolled loan” means a loan made by a participating financial institution that is enrolled by a participating State in accordance with this subchapter;

“financial institution” applies throughout its subchapter

the term “financial institution” means any federally chartered or State-chartered commercial bank, savings association, savings bank, or credit union;

“Fund” applies throughout its subchapter

the term “Fund” means the Community Development Financial Institutions Fund established under section 4703 of this title ;

“participating financial institution” applies throughout its subchapter

the term “participating financial institution” means any financial institution that has entered into a participation agreement with a participating State in accordance with section 4744 of this title ;

“participating State” applies throughout its subchapter

the term “participating State” means any State that has been approved for participation in the Program in accordance with section 4743 of this title ;

“passive real estate ownership” applies throughout its subchapter

the term “passive real estate ownership” means ownership of real estate for the purpose of deriving income from speculation, trade, or rental, except that such term shall not include— (A) the ownership of that portion of real estate being used or intended to be used for the operation of the business of the owner of the real estate (other than the business of passive ownership of real estate); or (B) the ownership of real estate for the purpose of construction or renovation, until the completion of the construction or renovation phase;

“Program” applies throughout its subchapter

the term “Program” means the Small Business Capital Enhancement Program established under this subchapter;

“reserve fund” applies throughout its subchapter

the term “reserve fund” means a fund, established by a participating State, earmarked for a particular participating financial institution, for the purposes of— (A) depositing all required premium charges paid by the participating financial institution and by each borrower receiving a loan under the Program from a participating financial institution; (B) depositing contributions made by the participating State; and (C) covering losses on enrolled loans by disbursing accumulated funds; and;

“State” applies throughout its subchapter

the term “State” means— (A) a State of the United States; (B) the District of Columbia; (C) any political subdivision of a State of the United States, which subdivision has a population in excess of the population of the least populated State of the United States; and (D) any other political subdivision of a State of the United States that the Fund determines has the capacity to participate in the program. 1

“appropriate Federal banking agency” applies throughout its chapter

the terms “appropriate Federal banking agency”, “Federal banking agencies”, “insured depository institution”, and “State bank supervisor” have the same meanings as in section 1813 of this title ; and;

“Federal banking agencies” applies throughout its chapter

the terms “appropriate Federal banking agency”, “Federal banking agencies”, “insured depository institution”, and “State bank supervisor” have the same meanings as in section 1813 of this title ; and;

“insured credit union” applies throughout its chapter

the term “insured credit union” has the same meaning as in section 1752 of this title .

“insured depository institution” applies throughout its chapter

the terms “appropriate Federal banking agency”, “Federal banking agencies”, “insured depository institution”, and “State bank supervisor” have the same meanings as in section 1813 of this title ; and;

“State bank supervisor” applies throughout its chapter

the terms “appropriate Federal banking agency”, “Federal banking agencies”, “insured depository institution”, and “State bank supervisor” have the same meanings as in section 1813 of this title ; and;

“Federal banking agency” applies in that section

the term “Federal banking agency” has the same meaning as in section 1813 of this title .

“alternative means of dispute resolution” applies in that section

The term “alternative means of dispute resolution” has the meaning given to such term in section 571 of title 5 . (4) Issues in controversy

“independent appellate process” applies in that section

The term “independent appellate process” means a review by an agency official who does not directly or indirectly report to the agency official who made the material supervisory determination under review. (3) Alternative means of dispute resolution

“issues in controversy” applies in that section

The term “issues in controversy” means— (A) any final agency decision involving any claim against an insured depository institution or insured credit union for which the agency has been appointed conservator or receiver or for which a liquidating agent has been appointed, as the case may be; (B) any final action taken by an agency in the agency’s capacity as conservator or receiver for an insured depository institution or by the liquidating agent appointed for an insured credit union; and (C) any other issue for which the appropriate Federal banking agency or the National Credit Union Administration Board determines that alternative means of dispute resolution would be appropriate.

“material supervisory determinations” applies in that section

The term “material supervisory determinations”— (A) includes determinations relating to— (i) examination ratings; (ii) the adequacy of loan loss reserve provisions; and (iii) loan classifications on loans that are significant to an institution; and (B) does not include a determination by a Federal banking agency or the National Credit Union Administration Board to appoint a conservator or receiver for an insured depository institution or a liquidating agent for an insured credit union, as the case may be, or a decision to take action pursuant to section 1831 o of this title or section 1790a of this title , as appropriate. (2) Independent appellate process

“Federal banking agency” applies in that section

the term “Federal banking agency” has the meaning given that term in section 1813 of this title .

“adjustable rate mortgage” applies throughout its chapter

The term “adjustable rate mortgage” means a residential mortgage that has an interest rate that is subject to change. A residential mortgage that: (A) does not fully amortize over the term of the obligation; and (B) contains a conditional right to refinance or modify the unamortized principal at the maturity date of the term, shall be considered to be an adjustable rate mortgage for purposes of this chapter. (2) Cancellation date

“amortization schedule then in effect” applies throughout its chapter

The term “amortization schedule then in effect” means, with respect to an adjustable rate mortgage, a schedule established at the time at which the residential mortgage transaction is consummated or, if such schedule has been changed or recalculated, is the most recent schedule under the terms of the note or mortgage, which shows— (A) the amount of principal and interest that is due at regular intervals to retire the principal balance and accrued interest over the remaining amortization period of the loan; and (B) the unpaid balance of the loan after each such scheduled payment is made. (7) Midpoint of the amortization period

“cancellation date” applies throughout its chapter

The term “cancellation date” means— (A) with respect to a fixed rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage— (i) based solely on the initial amortization schedule for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 80 percent of the original value of the property securing the loan; or (ii) based solely on actual payments, reaches 80 percent of the original value of the property securing the loan; and (B) with respect to an adjustable rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage— (i) based solely on the …

“fixed rate mortgage” applies throughout its chapter

The term “fixed rate mortgage” means a residential mortgage that has an interest rate that is not subject to change. (4) Good payment history

“good payment history” applies throughout its chapter

The term “good payment history” means, with respect to a mortgagor, that the mortgagor has not— (A) made a mortgage payment that was 60 days or longer past due during the 12-month period beginning 24 months before the later of (i) the date on which the mortgage reaches the cancellation date, or (ii) the date that the mortgagor submits a request for cancellation under section 4902(a)(1) of this title ; or (B) made a mortgage payment that was 30 days or longer past due during the 12-month period preceding the later of (i) the date on which the mortgage reaches the cancellation date, or (ii) the date that the mortgagor submits a request for cancellation under section 4902(a)(1) of this title .