(a)As used in this section, "community
based economic development" refers to activities that seek to address
economic development through affordable housing development or the
rehabilitation of qualified rehabilitated buildings or certified historic
structures, or that seeks to address economic causes of poverty within
specific geographic areas, revitalizing the economic and social base of
low income communities through activities that include:
(1)small business and micro-enterprise support;
(2)commercial, industrial, and retail revitalization, retention, and
expansion;
(3)capacity development and technical assistance support for
community development corporations;
(4)employment and training efforts;
(5)human resource development; and
(6)social service enterprises.
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(a) As used in this section, "community
based economic development" refers to activities that seek to address
economic development through affordable housing development or the
rehabilitation of qualified rehabilitated buildings or certified historic
structures, or that seeks to address economic causes of poverty within
specific geographic areas, revitalizing the economic and social base of
low income communities through activities that include:
(1) small business and micro-enterprise support;
(2) commercial, industrial, and retail revitalization, retention, and
expansion;
(3) capacity development and technical assistance support for
community development corporations;
(4) employment and training efforts;
(5) human resource development; and
(6) social service enterprises.
(b) As used in this section, "community development corporation"
means a private, nonprofit corporation:
(1) whose board of directors is comprised primarily of community
representatives and business, civic, and community leaders; and
(2) whose principal purpose includes the provision of:
(A) housing;
(B) community based economic development projects; and
(C) social services;
that primarily benefit low-income individuals and communities.
(c) As used in this section, "capital and surplus" has the meaning set
forth in IC 28-1-1-3(10).
(d) As used in this section, "community and economic development
entity" has the meaning set forth in 12 CFR 24.2(c).
(e) As used in this section, "community development project" has
the meaning set forth in 12 CFR 24.2(d).
(f) As used in this section, "public welfare investment" means any
investment permitted by 12 CFR 24.3.
(g) Subject to the limitations of this section, other laws, and any
regulation, rule, policy, or guidance adopted by the department
concerning investments in community based economic development,
any bank or trust company may invest directly or indirectly in equity
investments in a corporation, a limited partnership, a limited liability
company, or another entity organized as:
(1) a community development corporation;
(2) an entity formed primarily to support community based
economic development;
(3) an entity qualifying for the new markets tax credits under 26
U.S.C. 45D;
(4) an entity approved by the director as being formed for a
predominantly civic, community, or public purpose and that:
(A) primarily benefits low and moderate income individuals;
(B) primarily benefits low and moderate income areas;
(C) primarily benefits areas targeted for redevelopment by a
government entity; or
(D) is a qualified investment under 12 CFR 25.23 for purposes
of the Community Reinvestment Act of 1977 (12 U.S.C. 2901
et seq.); or
(5) an entity making qualified rehabilitation expenditures with
respect to a qualified rehabilitated building or certified historic
structure, as such terms are defined in section 47 of the Internal
Revenue Code of 1986 or a similar state historic tax credit
program, as provided for in Section 619(d)(1)(E) of the
Dodd-Frank Wall Street Reform and Consumer Protection Act
(12 U.S.C. 1851(d)(1)(E)).
(h) Subject to any regulation, rule, policy, or guidance adopted by
the department, any bank or trust company may invest directly or
indirectly in any:
(1) community and economic development entity;
(2) community development project; or
(3) other public welfare investment;
as long as the investment is in compliance with 12 CFR 24.
(i) Except as provided in subsection (j), the aggregate of all equity
investments by a bank or trust company under subsections (g) and (h)
may not exceed:
(1) five percent (5%) of the capital and surplus of the bank or
trust company without the prior written approval of the director;
and
(2) fifteen percent (15%) of the capital and surplus of the bank or
trust company under any circumstances.
(j) In determining whether to permit the aggregate of all equity
investments by a bank or trust company under subsections (g) and (h)
to exceed five percent (5%) of the capital and surplus of the bank or
trust company under subsection (i)(1), the director shall consider
whether:
(1) the aggregate of all equity investments under subsections (g)
and (h) will pose a significant risk to the affected deposit
insurance fund; and
(2) the bank or trust company is adequately capitalized.
(k) A bank or trust company shall not make any investment under
this section if the investment would expose the bank or trust company
to unlimited liability.