Sec. 523. DEFINITIONS
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## SEC. 523 DEFINITIONS **[**[20 U.S.C. 1070 note](/us/usc/t20/s1070)**]** As used in this part: ####
(1)Area program center The term “**area program center**” means an organization that— #####
(A)is part of, responsible to, and overseen by, the national organization; and #####
(B)is staffed by professionals trained to create, develop, and sustain local affiliated chapters in towns, cities, and neighborhoods. ####
(2)Local affiliated chapter The term “**local affiliated chapter**” means an organization that— #####
(A)is a nonprofit organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986, and exempt from taxation under section 501(a) of such Code (or shall meet this criteria through affiliation with the national organization described in paragraph (3)); #####
(B)is formed for the purpose of providing educational scholarships and academic support for residents of the local community served by such organization; #####
(C)solicits broad-based community support in its academic support and fund-raising activities; #####
(D)is broadly representative of the local community in the structures of its volunteer-operated organization and has a board of directors that includes leaders from local neighborhood organizations and neighborhood residents, such as school or college personnel, parents, students, community agency representatives, and representatives of the business community; #####
(E)awards scholarships without regard to age, sex, marital status, race, creed, color, religion, national origin or disability; and #####
(F)gives priority in awarding scholarships to students from low-income families in the local community. ####
(3)National organization The term “**national organization**” means an organization that— #####
(A)has the capacity to create, develop and sustain local affiliated chapters; #####
(B)has the capacity to sustain newly created local affiliated chapters in towns, cities, and neighborhoods through ongoing training and support programs; #####
(C)is described in section 501(c)(3) of the Internal Revenue Code of 1986, and exempt from taxation under section 501(a) of such Code; #####
(D)is a publicly supported organization within the meaning of section 170(b)(1)(A)(vi) of such Code; #####
(E)ensures that each of its local affiliated chapters meet the criteria described in subparagraphs
(C)and (D); and #####
(F)has a program for or experience in cooperating with secondary and postsecondary institutions in carrying out its scholarship and academic support activities. ####
(4)High-poverty area The term “**high-poverty area**” means a community with a higher percentage of children in poverty than the national average of such percentage. ####
(5)Students from low-income families The term “**students from low-income families**” means students determined, pursuant to part F of title IV of the Higher Education Act of 1965, to be eligible for a Federal Pell Grant under subpart 1 of part A of title IV of such Act.
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