D.C. Code § 47-351.09

Linked deposits for community development lending.

Official textus-dc/statcode.dccouncil.gov11 subsections

# (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.

Source: official DC Code section page (code.dccouncil.gov)

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