Bill > AB2214

This bill establishes a new "Community Reinvestment Account" within the existing Local Agency Investment Fund (LAIF), which is a pool of money managed by the Treasurer for local government investments. The purpose of this new account is to direct funds towards financial institutions that demonstrate specific community reinvestment activities, such as verified small business lending in underserved areas and lending to first-time or first-generation homebuyers. The Treasurer will determine what percentage of LAIF funds, between 5% and 10%, will be transferred to this new account. Institutions receiving these deposits must meet certain performance standards and will be required to submit quarterly reports on their lending activities, which the Treasurer will then publish in a public report. The bill also modifies collateral requirements for deposits from this account, allowing for a letter of credit from the Federal Home Loan Bank of San Francisco to be valued at 90% of the deposited amount, a slight decrease from the usual 100% requirement for certain other types of deposits. Additionally, the Treasurer is authorized to use federal or state funds to support these reinvestment efforts through measures like interest rate buy-downs or loan loss reserves.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2214