Text of the Lower Mississippi Delta Development Financing Corporation Act
The text of the bill below is as of Jan 5, 1993 (Introduced).
HR 183 IH
H. R. 183
To promote economic development in the Lower Mississippi Delta by establishing the Lower Mississippi Delta Development Financing Corporation, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
January 5, 1993
January 5, 1993
Mr. ESPY (for himself and Mr. EMERSON) introduced the following bill; which was referred to the Committee on Banking, Finance and Urban Affairs
To promote economic development in the Lower Mississippi Delta by establishing the Lower Mississippi Delta Development Financing Corporation, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
- This Act may be cited as the ‘Lower Mississippi Delta Development Financing Corporation Act’.
SEC. 2. FINDINGS AND PURPOSES.
- (a) FINDINGS- The Congress finds the following:
- (1) The income levels, employment levels, educational levels, and similar socioeconomic indicators are extremely low in the lower Mississippi delta region.
- (2) The economic base in the region is underdeveloped and the local capacity to strengthen the economic base is inadequate.
- (3) The region has significant economic strengths upon which to build a strong and vibrant economy.
- (4) A regional institution is the most appropriate form for an economic development institution which can efficiently address the economic situation in the lower Mississippi delta region given the scope of the economic problems confronting the region and the common conditions which are apparent throughout the region.
- (b) PURPOSES- The purposes of this Act are as follows:
- (1) To establish a multifaceted proactive regional institution to develop entrepreneurs and encourage the creation of new ventures.
- (2) To create a sustainable change in the economic environment of the lower Mississippi delta region which is conducive to the growth and success of new ventures by providing intensive technical assistance and guidance and appropriate forms of capital.
- (3) To provide a structure for designing and implementing strategies for building the capacity of new and existing institutions and organizations that provide enterprise assistance.
- (4) To create a culture of entrepreneurship through role models and programs.
- (5) To develop partnerships with lenders, government, community organizations, and private businesses for creating a continuum of credit and capital products ranging from debt instruments for established firms to equity investments for early-stage development and new ventures.
- (6) To target community development banking activities and capacity building assistance to the chronically-distressed communities of the lower Mississippi delta.
- (c) DEFINITIONS- For purposes of this Act--
- (1) CORPORATION- The term ‘Corporation’ means the Lower Mississippi Delta Development Financing Corporation.
- (2) DIRECTOR- The term ‘director’ means a member of the board of directors of the Corporation.
- (3) LOWER MISSISSIPPI DELTA REGION- The term ‘lower Mississippi delta region’ means the 219 counties in the States of Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and Tennessee identified as the lower Mississippi delta area in the final report of the Lower Mississippi Delta Development Commission entitled ‘The Delta Initiatives’ under date of May 14, 1990.
SEC. 3. ESTABLISHMENT OF CORPORATION.
- (a) IN GENERAL- There is hereby established the Lower Mississippi Delta Development Financing Corporation as a federally chartered private corporation.
- (b) MANAGEMENT-
- (1) IN GENERAL- The Corporation shall be under the management of a board of directors consisting of 15 directors.
- (2) QUALIFICATIONS OF APPOINTED DIRECTORS- Directors who are appointed to the board of directors pursuant to subsection (c) shall be appointed--
- (A) from among individuals who--
- (i) have expressed a strong commitment to the economic development of the lower Mississippi delta; and
- (ii) are especially qualified to serve as directors by virtue of their education, training, or experience; and
- (B) after giving special consideration to the public interest in the appointment of a board of directors the membership of which is fairly representative of the diverse interests in the lower Mississippi delta region and the geographical subregions and political subdivisions within the region.
- (3) QUORUM- 8 directors shall constitute a quorum.
- (4) CHAIRPERSON- The board of directors shall elect 1 director to serve as the chairperson of the board of directors for such term as the bylaws of the Corporation shall provide.
- (5) MEETINGS- Except as otherwise provided in the bylaws of the Corporation, the board of directors shall meet at the call of the chairperson of the board of directors or a majority of the directors.
- (c) APPOINTMENT OF DIRECTORS-
- (1) INITIAL APPOINTMENT OF DIRECTORS FOR 1 YEAR TO ORGANIZE THE CORPORATION-
- (A) IN GENERAL- The directors first appointed to the board of directors after the enactment of this Act shall be appointed by the President by and with the advice and consent of the lower Mississippi delta region congressional delegation in accordance with subparagraph (B) for a term of 1 year.
- (B) ADVICE AND CONSENT PROCEDURE-
- (i) SUBMISSION OF NOMINATION- The President shall submit the nomination of a person as a director of the Corporation to the Speaker of the House of Representatives and the president pro tempore of the Senate.
- (ii) MEETING OF THE LOWER MISSISSIPPI DELTA REGION CONGRESSIONAL DELEGATION- Upon receipt of a nomination by the President in accordance with clause (i), the Speaker of the House of Representatives and the president pro tempore of the Senate shall convene a meeting of the lower Mississippi delta region congressional delegation to consider the nomination in accordance with such procedures as the delegation may adopt for such purpose.
- (iii) ELECTION BY MAJORITY- The nomination of a director of the Corporation under this paragraph may be confirmed only by a majority of the members of the lower Mississippi delta region congressional delegation each of whom shall have 1 vote.
- (C) LOWER MISSISSIPPI DELTA REGION CONGRESSIONAL DELEGATION DEFINED- For purposes of this paragraph, the term ‘lower Mississippi delta region congressional delegation’ means--
- (i) the Senators returned from the States of Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and Tennessee; and
- (ii) the representatives returned from each congressional district within the States of Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and Tennessee all or a portion of which lies within the lower Mississippi delta region, as determined by the Speaker of the House of Representatives.
- (D) DECLARATION OF CONGRESS- The Congress hereby declares that the procedure established under this paragraph for the appointment of the initial directors on the board of directors is undertaken in connection with the establishment of a private corporation and shall not be construed as the appointment of an officer of the United States within the meaning of the second paragraph of section 2 of Article II of the Constitution of the United States of America.
- (2) APPOINTMENT OF DIRECTORS AFTER FIRST YEAR- Except as provided in paragraph (1), any position on the board of directors which is held by an appointed director shall be filled, at the end of such director’s term or in the case of a vacancy during such term, by a person appointed by the board of directors in accordance with procedures established under the bylaws.
- (3) TERMS OF APPOINTED DIRECTORS-
- (A) IN GENERAL- The bylaws prescribed under section 3(a)(1) shall establish the terms of the directors appointed under paragraph (2).
- (B) APPOINTMENTS TO FILL VACANCIES- A director appointed to the board of directors to fill a vacancy occurring before the expiration of the term for which such director’s predecessor was appointed shall be appointed only for the remainder of such term.
- (C) SERVICE AFTER EXPIRATION OF TERM- A director may serve after the expiration of the term of such director until the successor of the director has taken office.
- (4) VACANCIES WITH RESPECT TO APPOINTED DIRECTORS- Any vacancy on the board of directors which was held by an appointed director shall be filled by a person appointed by the board of directors.
- (d) PROVISIONS APPLICABLE TO DIRECTORS ELECTED BY SHAREHOLDERS-
- (1) IN GENERAL- The board of directors may provide for the election of directors by stockholders in the corporation and establish procedures for such elections.
- (2) NUMBER OF ELECTED DIRECTORS- The number of directors who are elected by the holders of common stock--
- (A) may not exceed 10; and
- (B) shall be determined by the board of directors in accordance with the bylaws.
- (3) VACANCIES WITH RESPECT TO ELECTED DIRECTORS-
- (A) APPOINTMENT- Any vacancy on the board of directors which was held by an elected member and becomes vacant after the annual election of the elected directors shall be filled by a person appointed by the board of directors.
- (B) TERM OF APPOINTEE- A director appointed under subparagraph (A) to fill a vacancy occurring before the expiration of the term for which such director’s predecessor was elected shall be appointed only for the remainder of such term.
- (4) TERMS OF ELECTED DIRECTORS- Elected directors shall be elected annually for a term ending on the date of the next annual meeting of the common stockholders of the Corporation and shall serve until such directors’ successors are elected.
- (e) REPORT BY BOARD OF DIRECTORS AFTER 1 YEAR- Before the end of the term of the directors first appointed to the board of directors under subsection (c)(1), the board of directors shall submit a report to the President and the Congress on the organization and operation of the Corporation during the 1st year of the Corporation’s existence, including--
- (1) an accounting of the stock issued and sold by the Corporation during the year;
- (2) any recommendation of the board of directors with respect to the establishment or acquisition of any subsidiary of the Corporation and the activities of any such subsidiary; and
- (3) any recommendation for legislative initiatives which the board of directors may determine to be appropriate for further enhancing the economic development of the lower Mississippi delta region.
- (f) PROVISIONS RELATING DIRECTORS WHO ARE FEDERAL OFFICERS OR EMPLOYEES-
- (1) LIMITATION ON NUMBER- After the end of the 1-year period beginning on the date on which the board of directors first meets with a quorum present, not more than 3 directors may serve at the same time as an officer or employee of the United States.
- (2) RESTRICTION ON PAY FOR FEDERAL PERSONNEL- Directors who are full-time officers or employees of the United States shall receive no additional pay by reason of service on the board of directors.
SEC. 4. POWERS AND DUTIES OF CORPORATION.
- (a) GENERAL POWERS- The Corporation shall have the following powers:
- (1) BYLAWS- To prescribe, by the Board of Directors, bylaws not inconsistent with law regulating the manner in which--
- (A) stock of the corporation may be transferred;
- (B) the directors of the corporation may be appointed or elected;
- (C) the officers and employees of the corporation may be appointed;
- (D) the property of the corporation may be transferred;
- (E) the general business of the corporation may be conducted; and
- (F) the privileges granted to the corporation by law may be exercised and enjoyed.
- (2) CORPORATE SEAL- To adopt, alter, and use a corporate seal.
- (3) CONTRACTS- To enter into contracts.
- (4) ISSUE OBLIGATIONS- To issue debentures, bonds, or other obligations, and to borrow, to give security for any amount borrowed, and to pay interest on (and any redemption premium with respect to) any such obligation or amount.
- (5) STOCK- To issue stock in accordance with section 5.
- (6) PROPERTY AND INVESTMENTS- To acquire, hold, lease, mortgage, maintain, or dispose of real and personal property, including securities issued by any other person.
- (7) SUBSIDIARIES AND OTHER INVESTMENTS AND ASSOCIATIONS- To acquire or establish subsidiaries, to enter into partnerships, associations, joint ventures, and other business relationships, and to make investments in any person.
- (8) LITIGATION- To sue and be sued in its corporate capacity, and to complain and defend in any action brought by or against the Corporation in any State or Federal court of competent jurisdiction.
- (9) OFFICERS AND EMPLOYEES- By the Board of Directors--
- (A) to appoint an executive director, a secretary, and a treasurer and such other officers and employees as the Board of Directors may provide for in the bylaws;
- (B) to define the duties of the officers and employees;
- (C) to fix the compensation of such officers and employees and provide such other employment benefits as the Board of Directors may provide for in the bylaws;
- (D) to require bonds of officers and employees; and
- (E) to dismiss at pleasure any officer or employee.
- (10) STANDARDS- To establish such standards as may be appropriate to carry out the requirements of this Act, including underwriting standards.
- (11) OTHER POWERS- To exercise such incidental powers as may be appropriate to carry out the purposes of this Act.
- (12) SUCCESSION- To have succession until dissolved.
- (b) DUTIES-
- (1) IN GENERAL- The Corporation shall develop strategies and provide financial and technical assistance for building and expanding the economic base of the lower Mississippi delta region and communities within the region.
- (2) DEVELOPMENT STRATEGIES AUTHORIZED- In carrying out the purposes of this Act with respect to the lower Mississippi delta region, the Corporation may--
- (A) initiate or participate in community strategic planning for economic development;
- (B) provide, or participate in the provision of, technical training programs or technical services which the Corporation determines are appropriate for local capacity building, developing economic opportunities for businesses, including microenterprises, in the region or within any community in the region;
- (C) provide, or participate in the provision of, regional economic research and analysis and sectoral development services;
- (D) raise funds for regional and local economic development and other purposes of this Act from the Federal Government, State governments within the region, foundations, corporations, and other persons;
- (E) provide support through incentives and other forms of economic enhancement, including investments and grants, for the development of local financial institutions, including microloan funds, seed capital and venture capital funds, revolving loan funds, in order to make development banking and related financial services more available in the lower Mississippi delta region;
- (F) make or guarantee loans and provide grants (including matching grants) in connection with providing technical training programs or technical services and strategies for expanding existing businesses, including micro-enter-prises and other economic development within the region; and
- (G) establish terms for any loan under this paragraph which provide that the principal of the loan, or any portion of any such principal, may be forgiven if the program or project for which such loan has been made meets or exceeds such performance goals as may be established under the terms of the loan.
- (c) PASSIVE INVESTMENTS IN LOCAL BANKS-
- (1) IN GENERAL- The Corporation may acquire and retain shares of insured depository institutions and depository institution holding companies which are located in the lower Mississippi delta region and which are part of the development strategy and mission adopted by the Corporation.
- (2) PASSIVE INVESTMENT RULE- If--
- (A) the amount of the shares held by the Corporation in any insured depository institution or depository institution holding company at any time does not exceed 50 percent of the total number of the outstanding shares issued by such institution or holding company; and
- (B) the acquisition and retention of such shares by the Corporation is made for purposes of investment and is not made for the purpose of acquiring, exercising, or transferring control of any such depository institution or depository institution holding company,
- the Corporation shall not be deemed to control the depository institution or depository institution holding company for purposes of sections 2, 3, and 4 of the Bank Holding Company Act of 1956 or section 10 of the Home Owners’ Loan Act.
- (3) DEFINITIONS- For purposes of this subsection, the terms ‘insured depository institution’ and ‘depository institution holding company’ have the meaning given to such terms in section 3 of the Federal Deposit Insurance Act.
SEC. 5. STOCK ISSUANCE.
- (a) COMMON STOCK ISSUANCE-
- (1) IN GENERAL- The Corporation may issue common stock having par value fixed by the board of directors.
- (2) VOTING RIGHTS- Each share of common stock shall be entitled to 1 vote with rights of cumulative voting in elections of directors.
- (3) DIVIDENDS- The Corporation may pay to holders of common stock issued under this subsection such dividends on that stock as may be determined by the board of directors.
- (b) PREFERRED STOCK-
- (1) ISSUANCE- The Corporation may issue nonvoting preferred stock having such par value as the board of directors may determine.
- (2) PREFERENCE ON TERMINATION OF BUSINESS- In the event of any liquidation, dissolution, or completion of the business of the Corporation, holders of the preferred shares of stock of the Corporation, shall be paid in full at the par value of those shares, plus all accrued dividends, before the holders of shares of common stock of the Corporation may receive any payment.
SEC. 6. GRANTS TO CORPORATION.
- (a) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to the President the sum of $100,000,000 for fiscal years 1994, 1995, 1996, 1997, and 1998 for grants to the Corporation to carry out the purposes of this Act.
- (b) GRANTS TO CORPORATION- The President may make such grants to the Corporation as the President determines to be appropriate to carry out the purposes of this Act, including the use of such funds by the Corporation to secure obligations issued by the Corporation.
- (c) RECEIPT OF FUNDS NOT TO AFFECT PRIVATE STATUS OF CORPORATION- The Corporation shall not be treated as a Government corporation for purposes of chapter 91 of title 31, United States Code, or any other provision of law by virtue of any grant to the Corporation under this section.
- (d) TREATMENT OF CORPORATION FUNDS- No contribution or investment made by the Corporation with respect to any other person shall be treated as a contribution or investment involving any funds other than private funds because of any grant made to the Corporation under this section, for purposes of the Small Business Investment Act of 1958 or any other provision of law.
SEC. 7. RESOURCE COMMITTEE.
- (a) IN GENERAL- The Corporation shall establish an advisory committee consisting of XXX members appointed by the board of directors from among individuals especially qualified to advise the Corporation by virtue of their education, training, and experience.
- (b) DESIGNEE OF FEDERAL RESERVE BOARD- Notwithstanding the appointment authority of the board of directors of the Corporation under subsection (a), the Board of Governors of the Federal Reserve System may designate 1 officer or employee of such Board to serve as a member of the advisory committee established pursuant to subsection (a).
SEC. 8. ANNUAL REPORT.
- The Corporation shall submit an annual report on the operations of the Corporation and a financial statement to the Congress.
SEC. 9. ANNUAL GAO EXAMINATION.
- (a) IN GENERAL- Notwithstanding any other provision of law and in accordance with such regulations as the Comptroller General of the United States may prescribe, the Comptroller General shall perform an annual examination and a financial audit of the Corporation on whatever basis the Comptroller General determines to be appropriate.
- (b) ACCESS TO RECORDS- The Corporation shall--
- (1) make available to the Comptroller General for audit all records and property, used, or managed by the Corporation;
- (2) provide the Comptroller General with facilities for verifying transactions with the balances or securities held by depositaries, fiscal agents, or custodians; and
- (3) provide the Comptroller General with suitable and lockable offices, access to copying facilities, and furniture and telephones.
- (c) ANNUAL REPORT- The Comptroller General shall make an annual report to the Congress on the examination and financial audit of the Corporation under this section.
SEC. 10. FEDERAL AGENCY ASSISTANCE.
- Each agency, department, or other instrumentality of the Federal Government may provide funds, services, and facilities, on a reimbursable basis, which are appropriate to assist the Corporation to carry out the purposes of this Act.
SEC. 11. REORGANIZATION AS A STATE CHARTERED CORPORATION.
- (a) IN GENERAL- The board of directors of the Corporation shall recharter and reorganize the Corporation as a State-chartered corporation during the 6-month period beginning at the end of fiscal year 1999.
- (b) APPLICABILITY OF ACT- This Act shall cease to apply with respect to the Corporation as of the effective date of the chartering of the Corporation as a State-chartered corporation pursuant to subsection (a).