Indiana Code 28-6.1-7-11. Equity investments in community development corporations and community based economic development; limits; exceptions to limits; exposure to liability
(1) affordable housing development;
Terms Used In Indiana Code 28-6.1-7-11
- Community Reinvestment Act: The Act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods. It was enacted by the Congress in 1977. Source: OCC
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
(3) commercial, industrial, and retail revitalization, retention, and expansion;
(4) capacity development and technical assistance support for community development corporations;
(5) employment and training efforts;
(6) human resource development; and
(7) 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) 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, a savings bank 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; or
(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 C.F.R. § 25.23 for purposes of the Community Reinvestment Act of 1977 (12 U.S.C. § 2901 et seq.).
(e) Except as provided in subsection (f), the aggregate of all equity investments by a savings bank under subsection (d) may not exceed:
(1) five percent (5%) of the capital and surplus of the savings bank without the prior written approval of the director; and
(2) fifteen percent (15%) of the capital and surplus of the savings bank under any circumstances.
(f) In determining whether to permit the aggregate of all equity investments by a savings bank under subsection (d) to exceed five percent (5%) of the capital and surplus of the savings bank under subsection (e)(1), the director shall consider whether:
(1) the aggregate of all equity investments under subsection (d) will pose a significant risk to the affected deposit insurance fund; and
(2) the savings bank is adequately capitalized.
(g) A savings bank shall not make any investment under this section if the investment would expose the savings bank to unlimited liability.
As added by P.L.42-1993, SEC.72. Amended by P.L.136-1994, SEC.5; P.L.2-1995, SEC.114; P.L.27-2012, SEC.85.