HR 3709 — Advancing the Mentor-Protégé Program for Small Financial Institutions Act

changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

 FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989

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TITLE III--SAVINGS ASSOCIATIONS

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SEC. 308. PRESERVING MINORITY OWNERSHIP OF MINORITY FINANCIAL 
 INSTITUTIONS.

 (a) Consultation on Methods.--The Secretary of the Treasury 
shall consult with the Chairman of the Board of Governors of 
the Federal Reserve System, the Comptroller of the Currency, 
the Chairman of the National Credit Union Administration, and 
the Chairperson of the Board of Directors of the Federal 
Deposit Insurance Corporation on methods for best achieving the 
following goals:
 (1) Preserving the present number of minority 
 depository institutions.
 (2) Preserving their minority character in cases 
 involving mergers or acquisition of a minority 
 depository institution by using general preference 
 guidelines in the following order:
 (A) Same type of minority depository 
 institution in the same city.
 (B) Same type of minority depository 
 institution in the same State.
 (C) Same type of minority depository 
 institution nationwide.
 (D) Any type of minority depository 
 institution in the same city.
 (E) Any type of minority depository 
 institution in the same State.
 (F) Any type of minority depository 
 institution nationwide.
 (G) Any other bidders.
 (3) Providing technical assistance to prevent 
 insolvency of institutions not now insolvent.
 (4) Promoting and encouraging creation of new 
 minority depository institutions.
 (5) Providing for training, technical assistance, and 
 educational programs.
 (b) Definitions.--For purposes of this section--
 (1) Minority financial institution.--The term 
 ``minority depository institution'' means any 
 depository institution that--
 (A) if a privately owned institution, 51 
 percent is owned by one or more socially and 
 economically disadvantaged individuals;
 (B) if publicly owned, 51 percent of the 
 stock is owned by one or more socially and 
 economically disadvantaged individuals; and
 (C) in the case of a mutual institution where 
 the majority of the Board of Directors, account 
 holders, and the community which it services is 
 predominantly minority.
 (2) Minority.--The term ``minority'' means any black 
 American, Native American, Hispanic American, or Asian 
 American.
 (c) Reports.--The Secretary of the Treasury, the Chairman of 
the Board of Governors of the Federal Reserve System, the 
Comptroller of the Currency, the Chairman of the National 
Credit Union Administration, and the Chairperson of Board of 
Directors of the Federal Deposit Insurance Corporation shall 
each submit an annual report to the Congress containing a 
description of actions taken to carry out this section.
 (d) Financial Agent Mentor-Protege Program.--
 (1) In general.--The Secretary of the Treasury shall 
 establish a program to be known as the ``Financial 
 Agent Mentor-Protege Program'' (in this subsection 
 referred to as the ``Program'') under which a financial 
 agent designated by the Secretary or a large financial 
 institution may serve as a mentor, under guidance or 
 regulations prescribed by the Secretary, to a small 
 financial institution to allow such small financial 
 institution--
 (A) to be prepared to perform as a financial 
 agent; or
 (B) to improve capacity to provide services 
 to the customers of the small financial 
 institution.
 (2) Outreach.--The Secretary shall hold outreach 
 events to promote the participation of financial 
 agents, large financial institutions, and small 
 financial institutions in the Program at least once a 
 year.
 (3) Exclusion.--The Secretary shall issue guidance or 
 regulations to establish a process under which a 
 financial agent, large financial institution, or small 
 financial institution may be excluded from 
 participation in the Program.
 (4) Report.--The Office of Minority and Women 
 Inclusion of the Department of the Treasury shall 
 include in the report submitted to Congress under 
 section 342(e) of the Dodd-Frank Wall Street Reform and 
 Consumer Protection Act information pertaining to the 
 Program, including--
 (A) the number of financial agents, large 
 financial institutions, and small financial 
 institutions participating in such Program; and
 (B) the number of outreach events described 
 in paragraph (2) held during the year covered 
 by such report.
 (5) Definitions.--In this subsection:
 (A) Financial agent.--The term ``financial 
 agent'' means any national banking association 
 designated by the Secretary of the Treasury to 
 be employed as a financial agent of the 
 Government.
 (B) Large financial institution.--The term 
 ``large financial institution'' means any 
 entity regulated by the Comptroller of the 
 Currency, the Board of Governors of the Federal 
 Reserve System, the Federal Deposit Insurance 
 Corporation, or the National Credit Union 
 Administration that has total consolidated 
 assets greater than or equal to 
 $50,000,000,000.
 (C) Rural depository institution.--The term 
 ``rural depository institution'' means a 
 depository institution (as defined in section 3 
 of the Federal Deposit Insurance Act)--
 (i) with total consolidated assets of 
 less than $10,000,000,000; and
 (ii) located in a rural area, as 
 defined under section 
 1026.35(b)(2)(iv)(A) of title 12, Code 
 of Federal Regulations.
 (D) Small financial institution.--The term 
 ``small financial institution'' means--
 (i) any entity regulated by the 
 Comptroller of the Currency, the Board 
 of Governors of the Federal Reserve 
 System, the Federal Deposit Insurance 
 Corporation, or the National Credit 
 Union Administration that has total 
 consolidated assets lesser than or 
 equal to $2,000,000,000;
 (ii) a minority depository 
 institution; or
 (iii) a rural depository institution.

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