text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Bank On Our Communities Act of 
  2009''.
  
  SEC. 2. COMMUNITY CREDIT RENEWAL PROGRAM.
  
      Section 103 of the Emergency Economic Stabilization Act of 2008 (12 
  U.S.C. 5213) is amended--
              (1) by striking ``In exercising the authorities granted'' 
          and inserting the following:
      ``(a) In General.--In exercising the authorities granted'';
              (2) in paragraph (5), by inserting before the semicolon the 
          following: ``, except that the needs of certain small financial 
          institutions may be taken into account, as set forth in 
          paragraph (6), and the viability of certain small financial 
          institutions may be established, as set forth in subsection 
          (b)(3)''; and
              (3) by adding at the end the following:
      ``(b) Community Credit Renewal Program.--
              ``(1) In general.--There is established within the Treasury 
          the Community Credit Renewal Fund, which shall be used by the 
          Secretary to provide assistance to community banking 
          institutions in an amount not to exceed $15,000,000,000.
              ``(2) Transfer of funds.--Of amounts made available to 
          carry out this title, the Secretary shall transfer 
          $15,000,000,000 to Community Credit Renewal Fund for purposes 
          of this subsection.
              ``(3) Determination of viability.--Notwithstanding any 
          other provision of this title, the Secretary shall provide 
          assistance under this subsection to any community banking 
          institution, and a community banking institution may establish 
          its long-term viability for purposes of subsection (a)(4), by 
          demonstrating its receipt of capital from investors other than 
          the Secretary, if--
                      ``(A) the amount of capital to be received from 
                  investors other than the Secretary is equal to or 
                  greater than the amount of capital to be received from 
                  the Secretary;
                      ``(B) the aggregate amount of capital to be 
                  received from the Secretary and from investors other 
                  than the Secretary is determined, on the basis of a 
                  forward-looking assessment by the institution by its 
                  management (in consultation with the appropriate 
                  Federal banking agency), to enable the community 
                  banking institution to remain well-capitalized (as 
                  determined by the appropriate Federal banking agency) 
                  even under a reasonably adverse economic scenario 
                  during the 2-year period following the date of receipt 
                  of such capital, and to increase the outstanding loans 
                  of the community banking institution, by December 31, 
                  2010, such that the total amount of commercial and 
                  industrial loans is at least 5 percent greater than the 
                  smallest amount of such loans held by the community 
                  banking institution, as of any quarter-end in calendar 
                  year 2009;
                      ``(C) not later than--
                              ``(i) 20 business days prior to the 
                          proposed date of the investment by the 
                          Secretary, the community banking institution 
                          notifies the Secretary, or the designee 
                          selected by the Secretary to receive such 
                          notice, of the amount of capital that the 
                          community banking institution proposes to 
                          solicit from investors other than the 
                          Secretary, on the condition that such capital 
                          will be matched or supplemented by an 
                          investment by the Secretary, and of the amount 
                          of capital that the community banking 
                          institution proposes be invested by the 
                          Secretary; and
                              ``(ii) the close of business on the 5th 
                          business day after the date of the receipt of 
                          notice under clause (i) (or such longer period 
                          as the Secretary may reasonably establish, up 
                          to an additional 10 business days), the 
                          Secretary does not notify the community banking 
                          institution of the refusal of the Secretary to 
                          make the matching or supplementary investment 
                          and the grounds for such refusal, including the 
                          determination of the Secretary, in consultation 
                          with the appropriate Federal banking agency, 
                          that the aggregate amount of capital to be 
                          raised would not be enough to meet the 
                          requirements of this subsection, provided, 
                          however, that the Secretary may not refuse to 
                          make a matching or supplementary investment to 
                          an institution solely on the grounds that the 
                          institution holds a CAMEL composite rating of 3 
                          under the Uniform Financial Institutions Rating 
                          System (or an equivalent rating under a 
                          comparable rating system);
                      ``(D) the capital is received from investors other 
                  than the Secretary on the same day as the date of 
                  receipt of capital from the Secretary, and such date is 
                  prior to the earlier of--
                              ``(i) 9 months after the date of enactment 
                          of this subsection; or
                              ``(ii) September 30, 2010; and
                      ``(E) the aggregate amount of funds invested by the 
                  Secretary under this subsection does not exceed 
                  $15,000,000,000.
              ``(4) Lending incentives and penalties.--
                      ``(A) Penalties.--
                              ``(i) In general.--The interest rate or 
                          dividend to be paid on the Federal capital 
                          provided under this subsection by a community 
                          banking institution shall be increased to a 
                          penalty rate established by the Secretary, 
                          which shall be not less than 5 percentage 
                          points higher than the initial dividend or 
                          interest rate set for all community banking 
                          institutions assisted under this subsection if, 
                          by December 31, 2010, the community banking 
                          institution has failed--
                                      ``(I) to increase its total amount 
                                  of commercial, industrial, and consumer 
                                  loans by a dollar amount that is equal 
                                  to the amount of capital received from 
                                  the Secretary; or
                                      ``(II) to increase its total amount 
                                  of commercial and industrial loans by a 
                                  dollar amount that is at least 5 
                                  percent greater than the smallest 
                                  amount of such loans held by the 
                                  community banking institution as of any 
                                  quarter end of the first three quarters 
                                  in calendar year 2009.
                              ``(ii) Exemption authority.--The Secretary 
                          may provide for exceptions to the provisions of 
                          this paragraph in the case of exigent 
                          circumstances, as determined by the Secretary.
                      ``(B) Incentives for commercial and industrial 
                  loans.--Notwithstanding any other provision of this 
                  title--
                              ``(i) for each dollar that a community 
                          banking institution that has received 
                          assistance under this subsection does in 
                          commercial and industrial loans above the 
                          amounts described in subparagraph (A)(i)(II)--
                                      ``(I) the community banking 
                                  institution may redeem or repurchase 
                                  one dollar of securities or stock held 
                                  by the Secretary at a discount level 
                                  established by the Secretary, except 
                                  that such level shall be a minimum of 
                                  20 percent below par; or
                                      ``(II) the Secretary may, by rule, 
                                  allow for a reduction in the interest 
                                  or dividend paid on the securities; and
                              ``(ii) if the dollar increase in lending by 
                          a community banking institution that has 
                          received assistance under this subsection 
                          exceeds the total Federal assistance under this 
                          subsection, the Secretary may establish rules 
                          for additional discounts on redemption of stock 
                          or securities held by the Secretary.
              ``(5) Definitions.--As used in this subsection--
                      ``(A) the term `community banking institution' 
                  means a insured depository institution, or a holding 
                  company thereof, having total assets of less than 
                  $5,000,000,000; and
                      ``(B) the terms `insured depository institution' 
                  and `appropriate Federal banking agency' have the same 
                  meanings as in section 3 of the Federal Deposit 
                  Insurance Act (12 U.S.C. 1813).''.
target: Bank On Our Communities Act of 2009 - Amends the Emergency Economic Stabilization Act of 2008 (EESA) to provide that the needs and viability of insured depository institutions with total assets of less than $5 billion (small financial institutions) may be taken into account by the Secretary of the Treasury when exercising authority under EESA.
  
  Establishes within the Treasury the Community Credit Renewal Fund to provide up to $15 billion in assistance to community banking institutions.
  
  Prescribes the manner in which a community banking institution may establish its long-term viability by demonstrating receipt of capital from investors other than the Secretary.
  
  Subjects a community banking institution to penalties if has failed by December 31, 2010, to: (1) increase its total amount of commercial, industrial, and consumer loans by a dollar amount equal to the amount of capital received from the Secretary; or (2) increase its total amount of commercial and industrial loans by a dollar amount at least 5 % greater than the smallest amount of such loans held by the community banking institution as of any quarter end of the first three quarters in calendar year 2009.
  
  Prescribes lending incentives to spur commercial and industrial loans by a community banking institution.
feat_title: A bill to amend the Emergency Economic Stabilization Act of 2008, with respect to considerations of the Secretary of the Treasury in providing assistance under that Act, and for other purposes.