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Text of the Rural Community Bank Paperwork Relief Act of 1993

This bill was introduced on November 19, 1993, in a previous session of Congress, but was not enacted. The text of the bill below is as of Nov 19, 1993 (Introduced).

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S 1698 IS

103d CONGRESS

1st Session

S. 1698

To reduce the paperwork burden on certain rural regulated financial institutions, and for other purposes.

IN THE SENATE OF THE UNITED STATES

November 19 (legislative day, NOVEMBER 2), 1993

Mr. WALLOP (for himself, Mr. BOREN, and Mr. MCCAIN) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs


A BILL

To reduce the paperwork burden on certain rural regulated financial institutions, 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 ‘Rural Community Bank Paperwork Relief Act of 1993’.

SEC. 2. SELF CERTIFICATION.

    The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is amended by adding at the end the following new section:

‘SEC. 809. SELF CERTIFICATION FOR INSTITUTIONS IN RURAL TOWNS.

    ‘A regulated financial institution shall be exempt from the evaluation and examination requirements of this title if such institution--

      ‘(1) is located in a town, political subdivision, or other unit of general local government that--

        ‘(A) has a population of not more than 20,000 residents, according to the most recent available census data; and

        ‘(B) is not located in a metropolitan statistical area of the United States Department of Commerce, Bureau of the Census;

      ‘(2) has a net loans and leases to deposits ratio of not less than 70 percent of the average institutional ratio of financial institutions of similar size in the same State, as defined by the appropriate Federal financial supervisory agency; and

      ‘(3) certifies that it is effectively meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, as determined in regulations published by each appropriate Federal financial supervisory agency.’.

SEC. 3. INCREASED INCENTIVES TO LENDING TO LOW- AND MODERATE-INCOME COMMUNITIES.

    Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 2903) is amended by adding at the end the following new subsection:

    ‘(c) CERTAIN RURAL INSTITUTIONS- In evaluating a regulated financial institution, the appropriate Federal financial supervisory agency shall give appropriate consideration and weight to the institution’s investments in and loans to joint ventures or other entities or projects that provide benefits to distressed communities located within or outside of the service area of the institution (as such terms are defined by the appropriate Federal financial supervisory agency) if such institution--

      ‘(1) is located in a town, political subdivision, or other unit of general local government that is not located in a metropolitan statistical area of the United States Department of Commerce, Bureau of the Census; and

      ‘(2) does not meet the requirements of section 809.’.