Page:United States Statutes at Large Volume 108 Part 3.djvu/421

 PUBLIC LAW 103-325—SEPT. 23, 1994 108 STAT. 2173 (i) directly; (ii) through grants; or (iii) by contracting with organizations that possess expertise in community development finance, without regard to whether the organizations receive or are eligible to receive assistance under this subtitle. (2) EQUITY INVESTMENTS. — (A) LIMITATION ON EQUITY INVESTMENTS.— The Fund shall not own more than 50 percent of the equity of a community development financial institution and may not control the operations of such institution. The Fund may hold only transferable, nonvoting equity investments in the institution. Such equity investments may provide for convertibility to voting stock upon transfer by the Fund. (B) FUND DEEMED NOT TO CONTROL. — Notwithstanding any other provision of law, the Fund shall not be deemed to control a community development financial institution by reason of any assistance provided under this subtitle for the purpose of any other applicable law to the extent that the Fund complies with subparagraph (A). Nothing in this subparagraph shall affect the application of any Federal tax law. (3) DEPOSITS. —Deposits made pursuant to this section in an insured community development financial institution shall not be subject to any requirement for collateral or security. (4) LIMITATIONS ON OBLIGATIONS. — Direct loan obligations may be incurred by the Fund only to the extent that appropriations of budget authority to cover their cost, as defined in section 502(5) of the Congressional Budget Act of 1974, are made in advance. (b) USES OF FINANCIAL ASSISTANCE.— (1) IN GENERAL.— Financial assistance made available under this subtitle may be used by assisted community development financial institutions to serve investment areas or targeted populations by developing or supporting— (A) commercial facilities that promote revitalization, community stability, or job creation or retention; (B) businesses that— (i) provide jobs for low-income people or are owned by low-income people; or (ii) enhance the availability of products and services to low-income people; (C) community facilities; (D) the provision of basic financial services; (E) housing that is principally affordable to low-income people, except that assistance used to facilitate homeownership shall only be used for services and lending products— (i) that serve low-income people; and (ii) that— (I) are not provided by other lenders in the area; or (II) complement the services and lending products provided by other lenders that serve the investment area or targeted population; and (F) other businesses and activities deemed appropriate by the Fund.

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