Sec. 209. Risk management committee
479 words·~2 min read·
/bill/117/hr/3339/ih/section-209A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Board shall establish a risk management committee consisting of 5 members, headed by the chief risk officer, with participation from the chief loan origination officer. A majority of the Board shall have the authority to appoint and reappoint the CRO of the Bank. The CRO shall have such functions, powers, and duties as may be prescribed by one or more of the following: This Act, the bylaws of the Bank, and the Board. The CRO shall report directly to the Board. In order to carry out the purposes of this Act, the risk management committee shall— create overarching financial, credit, and operational risk management guidelines and policies to be adhered to by the Bank; create conforming standards for loan agreements to ensure diversification of lending activities by— geographic region, infrastructure project type, and inclusion of disadvantaged and rural communities; and compliance with Federal and State laws referred to in section 213; create specific plans for all financial assistance provided by the Bank, including subsidy programs for disadvantaged communities and project targeting for disadvantaged business enterprises covered by section 47113 of title 49, United States Code; monitor overall financial, credit, and operational exposure of the Bank; create a standing subcommittee to perform regular credit evaluations and report on large infrastructure loans extended by the Bank that monitor compliance with terms, and attainment of performance targets contained in loan agreements; and provide financial recommendations to the Board for Board approval.
The Board shall appoint, remove, fix the compensation, and define the duties of 4 other risk management officers to serve on the risk management committee. The CRO and other risk management officers shall have demonstrated experience and expertise in one or more of the following: Treasury and asset and liability management. Investment regulations. Insurance. Credit risk management and credit evaluations. Infrastructure development projects. A vacancy in the position of CRO and other risk management officers of the risk management committee shall be filled in the manner in which the original appointment was made.
The compensation of the CRO and other risk management officers of the risk management committee shall be determined by the Board. The CRO and other risk management officers of the risk management committee may be removed at the discretion of a majority of the Board. The CRO and other risk management officers of the risk management committee shall serve a 6-year term and may be reappointed in accordance with this section. The CRO and other risk management officers of the risk management committee shall not— hold any other public office; have any interest in an infrastructure project considered by the Board; have any interest in an investment institution, commercial bank, or other entity seeking financial assistance for any infrastructure project from or investing in the Bank; and have any such interest during the 2-year period beginning on the date such officer ceases to serve in such capacity.