The term “eligible community development financial institution” means a community development financial institution (as described in section 1805.201 of title 12, Code of Federal Regulations, or any successor thereto) certified by the Secretary that has applied to a qualified issuer for, or been granted by a qualified issuer, a loan under the Program.
The term “guarantee” means a written agreement between the Secretary and a qualified issuer (or trustee), pursuant to which the Secretary ensures repayment of the verifiable losses of principal, interest, and call premium, if any, on notes or bonds issued by a qualified issuer to finance or refinance loans to eligible community development financial institutions.
The term “loan” means any credit instrument that is extended under the Program for any eligible community or economic development purpose.
The term “Program” means the guarantee Program for bonds and notes issued for eligible community or economic development purposes established under this section.
The term “Program administrator” means an entity designated by the issuer to perform administrative duties, as provided in subsection (f)(2).
The term “servicer” means an entity designated by the issuer to perform various servicing duties, as provided in subsection (f)(3).
A capital distribution plan meets the requirements of this subsection, if not less than 90 percent of the principal amount of guaranteed bonds or notes (other than costs of issuance fees) are used to make loans for any eligible community or economic development purpose, measured annually, beginning at the end of the 1-year period beginning on the issuance date of such guaranteed bonds or notes.
Not more than 10 percent of the principal amount of guaranteed bonds or notes, multiplied by an amount equal to the outstanding principal balance of issued notes or bonds, minus the risk-share pool amount under subsection (d), may be held in a relending account and may be made available for new eligible community or economic development purposes.
If a qualified issuer fails to meet the requirements of paragraph (1) by the end of the 90-day period beginning at the end of the annual measurement period, repayment shall be made on that portion of bonds or notes necessary to bring the bonds or notes that remain outstanding after such repayment into compliance with the 90 percent requirement of paragraph (1).
Each qualified issuer shall, during the term of a guarantee provided under the Program, establish a risk-share pool, capitalized by contributions from eligible community development financial institution participants an amount equal to 3 percent of the guaranteed amount outstanding on the subject notes and bonds.
A qualified issuer shall pay the fee required under this subsection on an annual basis.
There are authorized to be appropriated to the Secretary, such sums as are necessary to carry out this section.
Not later than 1 year after September 27, 2010, the Secretary shall promulgate regulations to carry out this section.
Not later than 2 years after September 27, 2010, the Secretary shall implement this section.
This section is repealed, and the authority provided under this section shall terminate, on September 30, 2014.