Sec. 5. Establishment of impact bank designation
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/bill/116/hr/5322/rfs/section-5A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Each Federal banking agency shall establish a program under which a depository institution with total consolidated assets of less than $10,000,000,000 may elect to be designated as an impact bank if the total dollar value of the loans extended by such depository institution to low-income borrowers is greater than or equal to 50 percent of the assets of such bank. Based on data obtained through examinations of depository institutions, the appropriate Federal banking agency shall notify a depository institution if the institution is eligible to be designated as an impact bank.
Regardless of whether or not it has received a notice of eligibility under subsection (b), a depository institution may submit an application to the appropriate Federal banking agency— requesting to be designated as an impact bank; and demonstrating that the depository institution meets the applicable qualifications. The Federal banking agencies may only impose additional data collection requirements on a depository institution under this section if such data is— necessary to process an application submitted by the depository institution to be designated an impact bank; or with respect to a depository institution that is designated as an impact bank, necessary to ensure the depository institution’s ongoing qualifications to maintain such designation.
If the appropriate Federal banking agency determines that a depository institution designated as an impact bank no longer meets the criteria for such designation, the appropriate Federal banking agency shall rescind the designation and notify the depository institution of such rescission. Under such procedures as the Federal banking agencies may establish, a depository institution may— submit to the appropriate Federal banking agency a request to reconsider a determination that such depository institution no longer meets the criteria for the designation; or file an appeal of such determination.
Not later than 1 year after the date of the enactment of this Act, the Federal banking agencies shall jointly issue rules to carry out the requirements of this section, including by providing a definition of a low-income borrower. Each Federal banking agency shall submit an annual report to the Congress containing a description of actions taken to carry out this section. In this section, the terms depository institution , appropriate Federal banking agency , and Federal banking agency have the meanings given such terms, respectively, in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ).