[Federal Register Volume 62, Number 227 (Tuesday, November 25, 1997)]
[Notices]
[Pages 62802-62803]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30895]
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DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
RIN 1505-AA71
Bank Enterprise Award Program; Amended Notice of Funds
Availability (NOFA) for the Bank Enterprise Award (BEA) Program
AGENCY: Community Development Financial Institutions Fund, Department.
ACTION: Amended Notice of Funds Availability (NOFA).
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SUMMARY: The Community Development Financial Institutions Fund (the
Fund) issues this amendment to the Notice of Funds Availability (NOFA)
published in the Federal Register on March 7, 1997, which invited
applications for the Bank Enterprise Award (BEA) Program. That NOFA
identified the applicable Assessment Period as March 1, 1997 through
August 31, 1997. Since publication, the Fund has learned that technical
advice that the Fund provided to an entity in connection with the
entity's certification as a Community Development Financial Institution
(CDFI) under 12 CFR part 1805 may have led the entity to obtain
investment capital from insured depository institutions prior to the
commencement of the Assessment Period. Currently, pursuant to the BEA
Program as set forth in the March 7, 1997 NOFA and the BEA Program
regulations at 12 CFR part 1806, CDFI Related Activities carried out by
insured depository institutions before March 1, 1997 are not eligible
for an award. To fulfill the purpose of the Community Development
Banking and Financial Institutions Act of 1994 (12 U.S.C. 4701 et
seq.), the Fund will allow insured depository institution applicants
the option of electing an Assessment Period from February 1, 1997
through July 31, 1997, provided that they meet certain conditions. The
Fund is confident that there are sufficient funds available to make
full cash awards to all insured depository institution applicants in
the second round of the BEA Program that qualified to receive awards,
and assures all such applicants that no awards will be reduced as a
result of this amendment.
DATES: Elections must be received in the offices of the Fund on or
before December 12, 1997.
ADDRESSES: Elections shall be mailed or faxed to: The Community
Development Financial Institutions Fund, U.S. Department of the
Treasury, 601 13th Street, NW, Suite 200 South, Washington, D.C. 20005,
Fax Number (202) 622-7754.
FOR FURTHER INFORMATION CONTACT: The Community Development Financial
Institutions Fund, U.S. Department of the Treasury, 601 13th Street,
NW, Suite 200 South, Washington, D.C. 20005, or call (202) 622-8662.
SUPPLEMENTARY INFORMATION:
I. Background
The purpose of the Community Development Banking and Financial
Institutions Act of 1994 (Act) was to create the Fund to promote
economic revitalization and community development through investment in
and assistance to Community Development Financial Institutions (CDFIs).
The Fund's BEA Program helps achieve this purpose through an incentive
system for insured depository institutions to increase their lending to
and investment in CDFIs by rewarding participating institutions with
awards.
II. Reasons for Amending the March 7, 1997 Notice of Funds
Availability
In early 1997, the Fund provided technical advice to an entity
regarding the Fund's requirements for certification as a CDFI under 12
CFR part 1805. The Fund understands that its technical advice led the
entity to obtain investment capital from insured depository
institutions in February 1997, and that the Fund also certified it as a
CDFI in February 1997.
Under the BEA Program, insured depository institutions which engage
in CDFI Related Activities, including equity investments in CDFIs,
during an Assessment Period will be eligible for an award (see 12 CFR
part 1806). The Fund sets forth the applicable Assessment Period in a
Notice of Funds Availability (NOFA). On March 7, 1997 (62 FR 10679),
the Fund published a NOFA in the Federal Register setting the
applicable Assessment Period as March 1, 1997 through August 31, 1997.
As a result, CDFI Related Activities conducted by insured depository
institutions in February 1997 are not eligible for a Bank Enterprise
Award.
The Fund believes that such a result would be inconsistent with the
purpose of the Act under circumstances where insured depository
institutions carried out CDFI Related Activities prior to the
Assessment Period as a direct or indirect result of the Fund's
technical advice, and would have carried out such activities during the
Assessment Period but for such advice. Specifically, the Act is
intended to reward insured depository institutions for increased
investments in CDFIs. If the Fund does not amend the NOFA, at least two
insured depository institutions would not be eligible to receive a Bank
Enterprise Award for CDFI Related Activities carried out in February
1997.
III. Amended Optional Assessment Period
The amended optional Assessment Period is February 1, 1997 through
July 31, 1997.
IV. Eligibility
Any insured depository institution that timely submitted to the
Fund an application in response to the March 7, 1997 NOFA may elect the
amended
[[Page 62803]]
optional Assessment Period, provided that the Fund receives the
following by the date set forth above:
(a) A detailed written explanation, with any and all supporting
documentation, describing the Fund's technical advice, the impact of
such advice on the insured depository institution's carrying out of
CDFI Related Activities in February 1997; and
(b) A revised ``Worksheet,'' ``Certification,'' and
``Documentation'' to reflect the Qualified Activities carried out
during the February 1, 1997 through July 31, 1997 Assessment Period
(see 12 CFR 1806.301 and 1806.202(d)).
V. Acceptance
Elections received in the offices of the Fund after the date set
forth above will be rejected. The Fund will accept a timely election
from an eligible insured depository institution which meets its burden
of establishing to the Fund that: (1) it carried out CDFI Related
Activities in February 1997 as a direct or indirect result of the
Fund's technical advice; and (2) it would have carried out those
Activities during the March 1, 1997 through August 31, 1997 Assessment
Period but for the Fund's technical advice. The Fund reserves the right
to make follow-up inquiries.
Authority: 12 U.S.C. 1834a, 4701, 4704, 4713; 12 CFR part 1806.
Maurice A. Jones,
Acting Deputy Director.
[FR Doc. 97-30895 Filed 11-24-97; 8:45 am]
BILLING CODE 4810-70-P