Sec. 209. Risk management committee
478 words·~2 min read·
/bill/119/hr/5356/ih/section-209·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Board, in consultation with the chief loan origination officer, shall establish a risk management committee consisting of 5 members, headed by the chief risk officer. A majority of the Board shall have the authority— to appoint the members of the risk management committee; and to define the duties of the chief risk officer and each remaining member of the risk management committee in accordance with this Act, the bylaws of the Bank, and requirements of the Board. Each member of the risk management committee shall have demonstrated experience and expertise in 1 or more of the following:
Treasury and asset and liability management. Investment regulations. Insurance. Credit risk management and credit evaluations. Infrastructure development projects. The chief risk officer shall— have such functions, powers, and duties as may be prescribed by this Act, the bylaws of the Bank, and the Board; and report directly to the Board. The risk management committee shall— develop overarching financial, credit, and operational risk management guidelines and policies to be adhered to by the Bank; develop conforming standards for loan agreements to ensure diversification of lending activities by geographic region, infrastructure project type, and inclusion of rural and disadvantaged communities; ensure compliance with Federal and State laws referred to in section 213; develop specific plans for all financial assistance provided by the Bank, including subsidy programs for disadvantaged communities and the inclusion of minorities, women, and indigenous people, and disadvantaged business participation in infrastructure projects financed by the Bank in accordance with section 213; monitor the overall financial, credit, and operational exposure of the Bank; establish a standing subcommittee to perform regular credit evaluations and report on large infrastructure loans extended by the Bank to monitor compliance with terms and attainment of performance targets contained in loan agreements; and provide financial recommendations to the Board for approval.
A vacancy on the risk management committee shall be filled in the manner in which the original appointment was made. The compensation of a member of the risk management committee shall be determined by the Board. A member of the risk management committee may be removed at the discretion of a majority of the Board. A member of the risk management committee shall serve a term of 6 years and may be reappointed in accordance with this section. During the period described in paragraph (2), a member of the risk management committee may not— hold any other public office; have any interest in an infrastructure project considered by the Board; or have any interest in an investment institution, commercial bank, or other entity seeking financial assistance from the Bank for any infrastructure project.
The period referred to in paragraph
(1)is the period— beginning on the date on which the member of the risk management committee is appointed; and ending on the date on which the member ceases to serve on the risk management committee.