12 U.S.C. § 1834b: Community development organizations

is a community development bank, or controls any community development bank, which meets the requirements of subsection (b); controls any community development corporation, or maintains any community development unit within the institution, which meets the requirements of subsection (c); invests in accounts in any community development credit union designated as a low-income credit union, subject to restrictions established for such credit unions by the National Credit Union Administration Board; or invests in a community development organization jointly controlled by two or more institutions; ½ of 1 percent of the capital, as defined by generally accepted accounting principles, of the institution; or the sum of the amounts invested in such community development organization; and the community development organization provides loans for residential mortgages, home improvement, and community development and other financial services, other than financing for the purchase of automobiles or extension of credit under any open-end credit plan (as defined in section 1602(i) 1 of title 15), to low- and moderate-income persons, nonprofit organizations, and small businesses located in qualified distressed communities in a manner consistent with the intent of this subtitle. 1 See References in Text note below. shall be appointed initially by the board of directors of the community development bank and thereafter by the Community Investment Board from nominations received from the community; and are appointed for a single term of 2 years, except that, of the initial members appointed to the Community Investment Board, ⅓ shall be appointed for a term of 8 months, ⅓ shall be appointed for a term of 16 months, and ⅓ shall be appointed for a term of 24 months, as designated by the board of directors of the community development bank at the time of the appointment; ⅓ of the members of the community development bank’s board of directors are appointed from among individuals nominated by the Community Investment Board; and the bylaws of the community development bank require that the board of directors of the bank meet with the Community Investment Board at least once every 3 months. Any community development corporation, or community development unit within any insured depository institution meets the requirements of this subsection if the corporation or unit provides the same or greater, as determined by the appropriate Federal banking agency, community participation in the activities of such corporation or unit as would be provided by a Community Investment Board under subsection (b) if such corporation or unit were a community development bank. The appropriate Federal banking agency may approve the establishment of a community development organization under this subtitle only upon finding that the distressed community is not adequately served by an existing community development organization. The term “community development bank” means any depository institution (as defined in section 1813(c)(1) of this title ). The term “community development organization” means any community development bank, community development corporation, community development unit within any insured depository institution, or community development credit union. The term “low- and moderate-income persons” has the meaning given such term in section 5302(a)(20) of title 42 . The terms “nonprofit organization” and “small business” have the meanings given to such terms by regulations which the appropriate Federal banking agency shall prescribe for purposes of this section. The term “qualified distressed community” has the meaning given to such term in section 1834a(b) of this title .