---
kind: "section"
citation: "12 U.S.C. § 4703"
title: "12"
title_heading: "Banks and Banking"
number: "4703"
heading: "Establishment of national Fund for community development banking"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4703"
units:
  - "Chapter 47 — Community Development Banking"
  - "Subchapter I — Community Development Banking and Financial Institutions"
---

# §4703. Establishment of national Fund for community development banking

- (a) **Establishment—**
  - (1) **In general—** There is established a corporation to be known as the [Community Development Financial Institutions](/usc/12/4702.md?p=5-A) [Fund](/usc/12/4702.md?p=10) that shall have the duties and responsibilities specified by this subchapter and subchapter II of this chapter. The [Fund](/usc/12/4702.md?p=10) shall have succession until dissolved. The offices of the [Fund](/usc/12/4702.md?p=10) shall be in Washington, D.C. The [Fund](/usc/12/4702.md?p=10) shall not be affiliated with or be within any other agency or department of the Federal Government.
  - (2) **Wholly owned Government corporation—** The [Fund](/usc/12/4702.md?p=10) shall be a wholly owned Government corporation in the executive branch and shall be treated in all respects as an agency of the United States, except as otherwise provided in this subchapter.
- (b) **Management of Fund—**
  - (1) **Appointment of Administrator—** The management of the [Fund](/usc/12/4702.md?p=10) shall be vested in an [Administrator](/usc/12/4702.md?p=1), who shall be appointed by the President. The [Administrator](/usc/12/4702.md?p=1) shall not engage in any other business or employment during service as the [Administrator](/usc/12/4702.md?p=1).
  - (2) **Chief financial officer—** The [Administrator](/usc/12/4702.md?p=1) shall appoint a chief financial officer, who shall have the authority and functions of an agency Chief Financial Officer under [section 902 of title 31](/usc/31/902.md). In the event of a vacancy in the position of the [Administrator](/usc/12/4702.md?p=1) or during the absence or disability of the [Administrator](/usc/12/4702.md?p=1), the chief financial officer shall perform the duties of the position of [Administrator](/usc/12/4702.md?p=1).
  - (3) **Other officers and employees—** The [Administrator](/usc/12/4702.md?p=1) may appoint such other officers and employees of the [Fund](/usc/12/4702.md?p=10) as the [Administrator](/usc/12/4702.md?p=1) determines to be necessary or appropriate.
  - (4) **Expedited hiring—** During the 2-year period beginning on September 23, 1994, the [Administrator](/usc/12/4702.md?p=1) may—
    - (A) appoint and terminate the individuals referred to in paragraphs [(2)](#b-2) and [(3)](#b-3) without regard to the civil service laws and regulations; and
    - (B) fix the compensation of the individuals referred to in [paragraph (3)](#b-3) without regard to the provisions of [chapter 51](/usc/12/chch51.md) and subchapter III of [chapter 53](/usc/5/chptIII/sptD/ch53.md) of title 5 relating to classification of positions and General Schedule pay rates, except that the rate of pay for such individuals may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title.
- (c) **General powers—** In carrying out the functions of the [Fund](/usc/12/4702.md?p=10), the [Administrator](/usc/12/4702.md?p=1)—
  - (1) shall have all necessary and proper authority to carry out this subchapter and subchapter II of this chapter;
  - (2) shall have the power to adopt, alter, and use a corporate seal for the [Fund](/usc/12/4702.md?p=10), which shall be judicially noticed;
  - (3) may adopt, amend, and repeal bylaws, rules, and regulations governing the manner in which business of the [Fund](/usc/12/4702.md?p=10) may be conducted and such rules and regulations as may be necessary or appropriate to implement this subchapter and subchapter II of this chapter;
  - (4) may enter into, perform, and enforce such agreements, contracts, and transactions as may be deemed necessary or appropriate to the conduct of activities authorized under this subchapter and subchapter II of this chapter;
  - (5) may determine the character of and necessity for expenditures of the [Fund](/usc/12/4702.md?p=10) and the manner in which they shall be incurred, allowed, and paid;
  - (6) may utilize or employ the services of personnel of any agency or instrumentality of the United States with the consent of the agency or instrumentality concerned on a reimbursable or nonreimbursable basis; and
  - (7) may execute all instruments necessary or appropriate in the exercise of any of the functions of the [Fund](/usc/12/4702.md?p=10) under this subchapter and subchapter II of this chapter and may delegate to the officers of the [Fund](/usc/12/4702.md?p=10) such of the powers and responsibilities of the [Administrator](/usc/12/4702.md?p=1) as the [Administrator](/usc/12/4702.md?p=1) deems necessary or appropriate for the administration of the [Fund](/usc/12/4702.md?p=10).
- (d) **Advisory Board—**
  - (1) **Establishment—** There is established an advisory [board](/usc/12/4702.md?p=4) to the [Fund](/usc/12/4702.md?p=10) to be known as the Community Development Advisory [Board](/usc/12/4702.md?p=4), which shall be operated in accordance with the provisions of [chapter 10](/usc/5/chptI/ch10.md) of title 5, except that [section 1013 of title 5](/usc/5/1013.md) does not apply to the [Board](/usc/12/4702.md?p=4).
  - (2) **Membership—** The [Board](/usc/12/4702.md?p=4) shall consist of 15 members, including—
    - (A) the [Secretary](/usc/12/1715z–22a.md?p=4) of Agriculture or his or her designee;
    - (B) the [Secretary](/usc/12/1715z–22a.md?p=4) of Commerce or his or her designee;
    - (C) the [Secretary](/usc/12/1715z–22a.md?p=4) of Housing and Urban Development or his or her designee;
    - (D) the [Secretary](/usc/12/1715z–22a.md?p=4) of the Interior or his or her designee;
    - (E) the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury or his or her designee;
    - (F) the [Administrator](/usc/12/4702.md?p=1) of the Small Business Administration or his or her designee; and
    - (G) 9 private citizens, appointed by the President, who shall be selected, to the maximum extent practicable, to provide for national geographic representation and racial, ethnic, and gender diversity, including—
      - (i) 2 individuals who are officers of existing [community development financial institutions](/usc/12/4702.md?p=5-A);
      - (ii) 2 individuals who are officers of [insured depository institutions](/usc/12/4702.md?p=15);
      - (iii) 2 individuals who are officers of national [consumer](/usc/12/5481.md?p=4) or public interest organizations;
      - (iv) 2 individuals who have expertise in community development; and
      - (v) 1 individual who has personal experience and specialized expertise in the unique lending and community development issues confronted by [Indian tribes](/usc/12/4702.md?p=12) on [Indian reservations](/usc/12/4702.md?p=11).
  - (3) **Chairperson—** The members of the [Board](/usc/12/4702.md?p=4) specified in [paragraph (2)(G)](#d-2-G) shall select, by majority vote, a chairperson of the [Board](/usc/12/4702.md?p=4), who shall serve for a term of 2 years.
  - (4) **Board function—** It shall be the function of the [Board](/usc/12/4702.md?p=4) to advise the [Administrator](/usc/12/4702.md?p=1) on the policies of the [Fund](/usc/12/4702.md?p=10) regarding activities under this subchapter. The [Board](/usc/12/4702.md?p=4) shall not advise the [Administrator](/usc/12/4702.md?p=1) on the granting or denial of any particular application.
  - (5) **Terms of private members—**
    - (A) **In general—** Each member of the [Board](/usc/12/4702.md?p=4) appointed under [paragraph (2)(G)](#d-2-G) shall serve for a term of 4 years.
    - (B) **Vacancies—** Any member appointed to fill a vacancy occurring prior to the expiration of the term for which the previous member was appointed shall be appointed for the remainder of such term. Members may continue to serve following the expiration of their terms until a successor is appointed.
  - (6) **Meetings—** The [Board](/usc/12/4702.md?p=4) shall meet at least annually and at such other times as requested by the [Administrator](/usc/12/4702.md?p=1) or the chairperson. A majority of the members of the [Board](/usc/12/4702.md?p=4) shall constitute a quorum.
  - (7) **Reimbursement for expenses—** The members of the [Board](/usc/12/4702.md?p=4) may receive reimbursement for travel, per diem, and other necessary expenses incurred in the performance of their duties, in accordance with chapter 10 of title 5.
  - (8) **Costs and expenses—** The [Fund](/usc/12/4702.md?p=10) shall provide to the [Board](/usc/12/4702.md?p=4) all necessary staff and facilities.
- (e) **Omitted—**
- (f) **Government Corporation Control Act exemption—** [Section 9107(b) of title 31](/usc/31/9107.md?p=b), shall not apply to deposits of the [Fund](/usc/12/4702.md?p=10) made pursuant to [section 4707 of this title](/usc/12/4707.md).
- (g) **Limitation of Fund and Federal liability—** The liability of the [Fund](/usc/12/4702.md?p=10) and the United States Government arising out of any investment in a [community development financial institution](/usc/12/4702.md?p=5-A) in accordance with this subchapter shall be limited to the amount of the investment. The [Fund](/usc/12/4702.md?p=10) shall be exempt from any assessments and other liabilities that may be imposed on controlling or principal shareholders by any Federal law or the law of any [State](/usc/12/4702.md?p=18), Territory, or the District of Columbia. Nothing in this subsection shall affect the application of any Federal tax law.
- (h) **Prohibition on issuance of securities—** The [Fund](/usc/12/4702.md?p=10) may not issue stock, bonds, debentures, notes, or other securities.
- (i) **Omitted—**
- (j) **Assisted institutions not United States instrumentalities—** A [community development financial institution](/usc/12/4702.md?p=5-A) or other organization that receives assistance pursuant to this subchapter shall not be deemed to be an agency, department, or instrumentality of the United States.
- (k) **Transition period—**
  - (1) **In general—** During the transition period, the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury may—
    - (A) assist in the establishment of the administrative functions of the [Fund](/usc/12/4702.md?p=10) listed in [paragraph (2)](#k-2); and
    - (B) hire not more than 6 individuals to serve as employees of the [Fund](/usc/12/4702.md?p=10) during the transition period.
  - (2) **Continued service—** Individuals hired in accordance with [paragraph (1)(B)](#k-1-B) may continue to serve as employees of the [Fund](/usc/12/4702.md?p=10) after the transition period.
  - (3) **Administrative functions—** The administrative functions referred to in [paragraph (1)(A)](#k-1-A) shall be limited to—
    - (A) establishing accounting, information, and recordkeeping systems for the [Fund](/usc/12/4702.md?p=10); and
    - (B) procuring office space, equipment, and supplies.
  - (4) **Expedited hiring—** During the transition period, the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury may—
    - (A) appoint and terminate the individuals referred to in [paragraph (1)(B)](#k-1-B) without regard to the civil service laws and regulations; and
    - (B) fix the compensation of the individuals referred to in [paragraph (1)(B)](#k-1-B) without regard to the provisions of [chapter 51](/usc/12/chch51.md) and subchapter III of [chapter 53](/usc/5/chptIII/sptD/ch53.md) of title 5 relating to classification of positions and General Schedule pay rates, except that the rate of pay for such individuals may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title.
  - (5) **Certain employees—** During the transition period, employees of the Department of the Treasury may only comprise less than one-half of the total number of individuals hired in accordance with [paragraph (1)(B)](#k-1-B).
  - (6) **Transition expenses—** Amounts previously appropriated to the Department of the Treasury may be used to pay obligations and expenses of the [Fund](/usc/12/4702.md?p=10) incurred under this section, and such amounts may be reimbursed by the [Fund](/usc/12/4702.md?p=10) to the Department of the Treasury from amounts appropriated to the [Fund](/usc/12/4702.md?p=10) for fiscal year 1995.
  - (7) **“Transition period” defined—** For purposes of this subsection, the term “transition period” means the period beginning on September 23, 1994, and ending on the date on which the [Administrator](/usc/12/4702.md?p=1) is appointed.

## Source credit

(Pub. L. 103–325, title I, § 104, Sept. 23, 1994, 108 Stat. 2166; Pub. L. 112–166, § 2(w), Aug. 10, 2012, 126 Stat. 1289; Pub. L. 117–286, § 4(a)(57), Dec. 27, 2022, 136 Stat. 4311.)

## Notes

### Editorial Notes

### Codification

Section is comprised of section 104 of Pub. L. 103–325. Subsecs. (e) and (i) of section 104 of Pub. L. 103–325 amended section 9101 of Title 31, Money and Finance, and section 5313 of Title 5, Government Organization and Employees, respectively.

### Amendments

2022—Subsec. (d)(1). Pub. L. 117–286, § 4(a)(57)(A), substituted “chapter 10 of title 5, except that section 1013 of title 5” for “the Federal Advisory Committee Act, except that section 14 of that Act”.

Subsec. (d)(7). Pub. L. 117–286, § 4(a)(57)(B), substituted “chapter 10 of title 5.” for “the Federal Advisory Committee Act.”

2012—Subsec. (b)(1). Pub. L. 112–166 struck out “, by and with the advice and consent of the Senate” before period at end of first sentence.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2012 Amendment

Amendment by Pub. L. 112–166 effective 60 days after Aug. 10, 2012, and applicable to appointments made on and after that effective date, including any nomination pending in the Senate on that date, see section 6(a) of Pub. L. 112–166, set out as a note under section 113 of Title 6, Domestic Security.

### Administration of Fund by Secretary of the Treasury

Pub. L. 104–134, title I, § 101(e) [title III], Apr. 26, 1996, 110 Stat. 1321–257, 1321–294; renumbered title I, Pub. L. 104–140, § 1(a), May 2, 1996, 110 Stat. 1327, provided in part: “That notwithstanding any other provision of law, for purposes of administering the Community Development Financial Institutions Fund, the Secretary of the Treasury shall have all powers and rights of the Administrator of the CDBFI Act [12 U.S.C. 4701 et seq.] and the Fund shall be within the Department of the Treasury.”

Similar provisions were contained in the following prior appropriations act:

Pub. L. 104–19, title I, July 27, 1995, 109 Stat. 237.