Page:United States Statutes at Large Volume 124.djvu/2157

 124 STAT. 2131 PUBLIC LAW 111–203—JULY 21, 2010 loans to consumers that will provide alternatives to more costly small dollar loans. (b) TERMS AND CONDITIONS.— (1) IN GENERAL.—Loans under this section shall be made on terms and conditions, and pursuant to lending practices, that are reasonable for consumers. (2) FINANCIAL LITERACY AND EDUCATION OPPORTUNITIES.— (A) IN GENERAL.—Each eligible entity awarded a grant under this section shall promote and take appropriate steps to ensure the provision of financial literacy and education opportunities, such as relevant counseling services, edu- cational courses, or wealth building programs, to each con- sumer provided with a loan pursuant to this section. (B) AUTHORITY TO EXPAND ACCESS.—As part of the grants, agreements, and undertakings established under this section, the Secretary may implement reasonable measures or programs designed to expand access to finan- cial literacy and education opportunities, including relevant counseling services, educational courses, or wealth building programs to be provided to individuals who obtain loans from eligible entities under this section. SEC. 1206. GRANTS TO ESTABLISH LOAN -LOSS RESERVE FUNDS. The Community Development Banking and Financial Institu- tions Act of 1994 (12 U.S.C. 4701 et seq.) is amended by adding at the end the following: ‘‘SEC. 122. GRANTS TO ESTABLISH LOAN -LOSS RESERVE FUNDS. ‘‘(a) PURPOSES.—The purposes of this section are— ‘‘(1) to make financial assistance available from the Fund in order to help community development financial institutions defray the costs of operating small dollar loan programs, by providing the amounts necessary for such institutions to estab- lish their own loan loss reserve funds to mitigate some of the losses on such small dollar loan programs; and ‘‘(2) to encourage community development financial institu- tions to establish and maintain small dollar loan programs that would help give consumers access to mainstream financial institutions and combat high cost small dollar lending. ‘‘(b) GRANTS.— ‘‘(1) LOAN-LOSS RESERVE FUND GRANTS.—The Fund shall make grants to community development financial institutions or to any partnership between such community development financial institutions and any other federally insured depository institution with a primary mission to serve targeted investment areas, as such areas are defined under section 103(16), to enable such institutions or any partnership of such institutions to establish a loan-loss reserve fund in order to defray the costs of a small dollar loan program established or maintained by such institution. ‘‘(2) MATCHING REQUIREMENT.—A community development financial institution or any partnership of institutions estab- lished pursuant to paragraph (1) shall provide non-Federal matching funds in an amount equal to 50 percent of the amount of any grant received under this section. ‘‘(3) USE OF FUNDS.—Any grant amounts received by a community development financial institution or any partner- ship between or among such institutions under paragraph (1)— 12 USC 4719. Grants.