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District of Columbia Code Division VIII. General Laws. § 47-351.09. Linked deposits for community development lending.

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) The Mayor, or the CFO pursuant to § 47-351.02(c), may make a deposit in an insured financial institution in return for a commitment by that institution to make specific community development loans in a low-to-moderate income area. The Mayor, or the CFO pursuant to § 47-351.02(c), shall determine the amount and scope of community development loans required to qualify for such linked deposits.

(b) When making a linked deposit, the Mayor, or the CFO pursuant to § 47-351.02(c), may accept a below-market interest rate that is within 3% of the market rate interest if the insured financial institution provides an equivalent reduction in the interest rate charged for the community development lending to which the deposit is linked.

(c) The Mayor, or the CFO pursuant to § 47-351.02(c), may make deposits linked to either specific loans or loan types.

(d) An insured financial institution may submit to the Mayor, or the CFO pursuant to § 47-351.02(c), a linked deposit application that includes information about the proposed community development lending and any other information the Mayor, or the CFO pursuant to § 47-351.02(c), requires.

(e) If the Mayor, or the CFO pursuant to § 47-351.02(c), approves a linked deposit application, the Mayor, or the CFO pursuant to § 47-351.02(c), and the insured financial institution shall enter into an agreement that includes each of the following terms and conditions and any others the Mayor, or the CFO pursuant to § 47-351.02(c), may require:

(1) A requirement that the insured institution shall not assign or sell a loan made with the proceeds of a linked deposit without approval of the Mayor, or the CFO pursuant to § 47-351.02(c), as long as the linked deposit is in effect;

(2) A requirement that a delay in payment or default by a borrower receiving a linked deposit loan does not affect the agreement between the insured financial institution and the Mayor, or the CFO pursuant to § 47-351.02(c);

(3) The terms of the deposit;

(4) A requirement that the Mayor, or the CFO pursuant to § 47-351.02(c), shall monitor compliance with the agreement; and

(5) The terms of the community development loans lending effort.

(f) The total amount of linked deposits and community development program deposits shall not exceed 7% of the average annual investment balance of the latest audited fiscal year.

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Cite this article: FindLaw.com - District of Columbia Code Division VIII. General Laws. § 47-351.09. Linked deposits for community development lending. - last updated January 01, 2024 | https://codes.findlaw.com/dc/division-viii-general-laws/dc-code-sect-47-351-09/

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