Title 12 — Banks and Banking
Chapter 53 — Wall Street Reform and Consumer Protection
§ 5624. Low-cost alternatives to small dollar loans
Statutory text
Grants authorized
The Secretary is authorized to establish multiyear demonstration programs by means of grants, cooperative agreements, financial agency agreements, and similar contracts or undertakings, with eligible entities to provide low-cost, small loans to consumers that will provide alternatives to more costly small dollar loans.
Terms and conditions
In general
Loans under this section shall be made on terms and conditions, and pursuant to lending practices, that are reasonable for consumers.
Financial literacy and education opportunities
In general
Each eligible entity awarded a grant under this section shall promote and take appropriate steps to ensure the provision of financial literacy and education opportunities, such as relevant counseling services, educational courses, or wealth building programs, to each consumer provided with a loan pursuant to this section.
Authority to expand access
As part of the grants, agreements, and undertakings established under this section, the Secretary may implement reasonable measures or programs designed to expand access to financial literacy and education opportunities, including relevant counseling services, educational courses, or wealth building programs to be provided to individuals who obtain loans from eligible entities under this section.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Improving Access to Mainstream Financial Institutions Act of 2010
Pub. L. 111–203 title XII § 1205 · 124 Stat. 1376
Enacted · 12 U.S.C. § 5624
(Pub. L. 111–203, title XII, § 1205, July 21, 2010, 124 Stat. 2130.)
Source evidence
Code source credit
(Pub. L. 111–203, title XII, § 1205, July 21, 2010, 124 Stat. 2130.)Enacted provision · exact public law section
SEC. 1205. LOW-COST ALTERNATIVES TO SMALL DOLLAR LOANS. (a) Grants Authorized.— The Secretary is authorized to establish multiyear demonstration programs by means of grants, cooperative agreements, financial agency agreements, and similar contracts or undertakings, with eligible entities to provide low-cost, small loans to consumers that will provide alternatives to more costly small dollar loans. (b) Terms and Conditions.— (1) In general.— Loans under this section shall be made on terms and conditions, and pursuant to lending practices, that are reasonable for consumers. (2) Financial literacy and education opportunities.— (A) In general.— Each Grants. eligible entity awarded a grant under this section shall promote and take appropriate steps to ensure the provision of financial literacy and education opportunities, such as relevant counseling services, educational courses, or wealth building programs, to each consumer provided with a loan pursuant to this section. (B) Authority to expand access.— As part of the grants, agreements, and undertakings established under this section, the Secretary may implement reasonable measures or programs designed to expand access to financial literacy and education opportunities, including relevant counseling services, educational courses, or wealth building programs to be provided to individuals who obtain loans from eligible entities under this section.
1 of 1 references resolved to an enrolled provision