12 USC 5623 - Expanded access to mainstream financial institutions

Collapse to view only § 5623. Expanded access to mainstream financial institutions

§ 5621. Purpose
§ 5622. Definitions
§ 5623. Expanded access to mainstream financial institutions
§ 5624. Low-cost alternatives to small dollar loans
§ 5625. Procedural provisions
§ 5626. Authorization of appropriations
§ 5627. Regulations
§ 5628. Evaluation and reports to Congress

§ 5621. Purpose

The purpose of this subchapter is to encourage initiatives for financial products and services that are appropriate and accessible for millions of Americans who are not fully incorporated into the financial mainstream.

(Pub. L. 111–203, title XII, § 1202, July 21, 2010, 124 Stat. 2129.)

§ 5622. Definitions

In this subchapter, the following definitions shall apply:

(1) Account

(2) Community development financial institution

(3) Eligible entity

The term “eligible entity” means—

(A) an organization described in section 501(c)(3) of title 26, and exempt from tax under section 501(a) of such title;

(B) a federally insured depository institution;

(D) a State, local, or tribal government entity; or

(E) a partnership or other joint venture comprised of 1 or more of the entities described in subparagraphs (A) through (D), in accordance with regulations prescribed by the Secretary under this subchapter.

(4) Federally insured depository institution

(Pub. L. 111–203, title XII, § 1203, July 21, 2010, 124 Stat. 2129.)

§ 5623. Expanded access to mainstream financial institutions

(a) In general

The Secretary is authorized to establish a multiyear program of grants, cooperative agreements, financial agency agreements, and similar contracts or undertakings to promote initiatives designed—

(1) to enable low- and moderate-income individuals to establish one or more accounts in a federally insured depository institution that are appropriate to meet the financial needs of such individuals; and

(2) to improve access to the provision of accounts, on reasonable terms, for low- and moderate-income individuals.

(b) Program eligibility and activities

(1) In general

(2) Account activities

Subject to regulations prescribed by the Secretary, an eligible entity may, in participating in a program established under subsection (a), offer or provide to low- and moderate-income individuals products and services relating to accounts, including—

(A) small-dollar value loans; and

(B) financial education and counseling relating to conducting transactions in and managing accounts.

(Pub. L. 111–203, title XII, § 1204, July 21, 2010, 124 Stat. 2130.)

§ 5624. Low-cost alternatives to small dollar loans

(a) Grants authorized

(b) Terms and conditions

(1) In general

(2) Financial literacy and education opportunities

(A) In general

(B) Authority to expand access

(Pub. L. 111–203, title XII, § 1205, July 21, 2010, 124 Stat. 2130.)

§ 5625. Procedural provisions

An eligible entity desiring to participate in a program or obtain a grant under this subchapter shall submit an application to the Secretary, in such form and containing such information as the Secretary may require.

(Pub. L. 111–203, title XII, § 1207, July 21, 2010, 124 Stat. 2132.)

§ 5626. Authorization of appropriations

(a) Authorization to the Secretary

(b) Authorization to the Fund

(Pub. L. 111–203, title XII, § 1208, July 21, 2010, 124 Stat. 2132.)

§ 5627. Regulations

(a) In general

(b) Regulatory authority

(Pub. L. 111–203, title XII, § 1209, July 21, 2010, 124 Stat. 2132.)

§ 5628. Evaluation and reports to Congress

For each fiscal year in which a program or project is carried out under this subchapter, the Secretary shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives containing a description of the activities funded, amounts distributed, and measurable results, as appropriate and available.

(Pub. L. 111–203, title XII, § 1210, July 21, 2010, 124 Stat. 2133.)