Page:United States Statutes at Large Volume 124.djvu/2614

 124 STAT. 2588 PUBLIC LAW 111–240—SEPT. 27, 2010 entity to be consulted would recommend the eligible institu- tion to receive a capital investment based on the financial condition of the institution if the conditions in subpara- graph (B) are satisfied. (B) CONDITIONS.—The conditions referred to in subparagraph (A) are as follows: (i) CAPITAL SOURCES.—The eligible institution shall receive capital both under the Program and from pri- vate, nongovernment investors. (ii) AMOUNT OF CAPITAL.—The amount of capital to be received under the Program shall not exceed 3 percent of risk-weighted assets, as reported in the call report immediately preceding the date of applica- tion, less the amount of any CDCI investment and any CPP investment. (iii) TERMS.—The amount of capital to be received from private, nongovernment investors shall be— (I) equal to or greater than 100 percent of the capital to be received under the Program; and (II) subordinate to the capital investment made by the Secretary under the Program. (4) INELIGIBILITY OF INSTITUTIONS ON FDIC PROBLEM BANK LIST.— (A) IN GENERAL.—An eligible institution may not receive any capital investment under the Program, if— (i) such institution is on the FDIC problem bank list; or (ii) such institution has been removed from the FDIC problem bank list for less than 90 days. (B) CONSTRUCTION.—Nothing in subparagraph (A) shall be construed as limiting the discretion of the Sec- retary to deny the application of an eligible institution that is not on the FDIC problem bank list. (C) FDIC PROBLEM BANK LIST DEFINED.—For purposes of this paragraph, the term ‘‘FDIC problem bank list’’ means the list of depository institutions having a current rating of 4 or 5 under the Uniform Financial Institutions Rating System, or such other list designated by the Federal Deposit Insurance Corporation. (5) INCENTIVES TO LEND.— (A) REQUIREMENTS ON PREFERRED STOCK AND OTHER FINANCIAL INSTRUMENTS.—Any preferred stock or other financial instrument issued to Treasury by an eligible institution receiving a capital investment under the Pro- gram shall provide that— (i) the rate at which dividends or interest are payable shall be 5 percent per annum initially; (ii) within the first 2 years after the date of the capital investment under the Program, the rate may be adjusted based on the amount of an eligible institu- tion’s small business lending. Changes in the amount of small business lending shall be measured against the average amount of small business lending reported by the eligible institution in its call reports for the 4 full quarters immediately preceding the date of enact- ment of this Act, minus adjustments from each quar- terly balance in respect of— Time period.