GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	2 

HOUSE BILL 1084
Committee Substitute Favorable 7/3/91

Short Title:  Developmental Lending Study.	(Public)
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Sponsors:
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Referred to:  
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April 24, 1991

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE LEGISLATIVE RESEARCH COMMISSION TO STUDY WAYS FINANCIAL INSTITUTIONS, COMMUNITY ORGANIZATIONS, AND LOCAL GOVERNMENTS CAN COOPERATIVELY WORK TO INCREASE DEVELOPMENTAL LENDING THAT STRENGTHENS LOW AND MODERATE INCOME COMMUNITIES IN NORTH CAROLINA.
Whereas, developmental lending plays an essential role in building and revitalizing low and moderate income communities;
Whereas, as federal programs to support developmental lending disappear, state and local governments are increasingly interested in leveraging their limited financial resources; and
Whereas, financial institutions in North Carolina are working cooperatively with local governments, State government, and community organizations to strengthen the capacity of financial institutions for risk management, marketing, staff expertise, liquidity, public partnerships, and private partnerships to promote developmental lending; Now, therefore,
The General Assembly of North Carolina enacts:
Section 1.  The Legislative Research Commission may study ways financial institutions in North Carolina can best work cooperatively with community organizations, local governments, and the State to increase the capacity of financial institutions to do developmental lending that strengthens low and moderate income communities, in accord with safe and sound lending practices.  The study, if undertaken, shall include an identification of any unmet credit needs in low and moderate income communities, ways financial institutions can increase their capacity in the areas of risk management, marketing, staff expertise, liquidity, private partnerships, and public partnerships, and what the State and local governments can do to support the role of financial institutions in these areas.
Sec. 2.  In conducting its study, the Commission may create a Joint Steering Committee consisting of the cochairs of the study committee created under Section 1 of this act and one representative from each of the following: the North Carolina Bankers Association, the North Carolina Legal Services Resource Center, the Alliance of Community Financial Institutions, and the Community Reinvestment Association of North Carolina.  The Joint Steering Committee may hold a series of six meetings across the State to solicit input from local financial institutions, community based development organizations, and local governments.  Necessary professional and clerical assistance for the six meetings may be provided by the Legislative Services Office.
Sec. 3.  If the study authorized in Section 1 of this act is conducted, the Commission may make an interim report to the 1991 General Assembly, 1992 Regular Session, and shall make a final report to the 1993 Session of the General Assembly.
Sec. 4.  This act is effective upon ratification.