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The DC Code: § 47-351.09 Linked deposits for community development lending.

Index47 Taxation, Licensing, Permits, Assessments, and Fees. (Refs & Annos)
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.

Historical and Statutory

Prior Codifications 1981 Ed., § 47-351.9. Emergency Act Amendments See Historical and Statutory Notes following § 47-351.01. Legislative History of Laws For legislative history of D.C. Law 12-56, see Historical and Statutory Notes following § 47-351.01. DC CODE § 47-351.09 Current through December 11, 2012

Credits

(Mar. 18, 1998, D.C. Law 12-56, § 2(c), 44 DCR 6933.)