---
kind: "section"
citation: "12 U.S.C. § 3043"
title: "12"
title_heading: "Banks and Banking"
number: "3043"
heading: "Advances"
release: "119-102"
url: "https://uscodex.org/usc/12/3043"
units:
  - "Chapter 31 — National Consumer Cooperative Bank"
  - "Subchapter II — Office of Self-Help Development and Technical Assistance"
---

# §3043. Advances

- (a) **Capital investment advances; criteria—** The [Office](/usc/12/2279bb.md?p=4) may make a [capital](/usc/12/51c.md) investment advance to any eligible cooperative, either in conjunction with or without a loan if the [Office](/usc/12/2279bb.md?p=4) determines that—
  - (1)
    - (A) the applicant’s initial or supplemental [capital](/usc/12/51c.md) requirements exceeds its ability to obtain such [capital](/usc/12/51c.md) through a loan under [section 3018 of this title](/usc/12/3018.md) or from other sources; or
    - (B) the membership of the applicant is, or will consist, substantially of low-income [persons](/usc/12/5481.md?p=19), as defined by the [Board](/usc/12/221a.md?p=a) of [Directors](/usc/12/2279bb.md?p=3), or the applicant proposes to undertake to provide specialized goods, services, or facilities to serve their needs; and
  - (2) the applicant cannot obtain sufficient [funds](/usc/12/4702.md?p=10) through a loan under [section 3018 of this title](/usc/12/3018.md) or otherwise, and the applicant presents a plan which the [Office](/usc/12/2279bb.md?p=4) determines will permit the replacement of a [capital](/usc/12/51c.md) investment advance out of [member](/usc/12/1426a.md?p=g-1) equities within a period not to exceed thirty years.
- (b) **Interest supplement advances; criteria; amount—** The [Office](/usc/12/2279bb.md?p=4) may make advances to pay all or part of the interest payable to the [Bank](/usc/12/1426a.md?p=g-1) or any other lender by an eligible cooperative applicant which the [Office](/usc/12/2279bb.md?p=4) determines cannot pay a market rate of interest because it sells goods or services to, or provides facilities for the use of, [persons](/usc/12/5481.md?p=19) of low income: Provided, That such advances will not exceed an amount equal to 4 per centum of the principal amount of the indebtedness of such applicant to the [Bank](/usc/12/1426a.md?p=g-1) or such other lender for any year in which the [net income](/usc/12/1441a–1.md?p=4) of the cooperative is insufficient to meet scheduled interest payments.
- (c) **Interest rate applicable to advances—** [Capital](/usc/12/51c.md) investment advances made by the [Office](/usc/12/2279bb.md?p=4) pursuant to [subsection (a)](#a) and interest supplement advances made by the [Office](/usc/12/2279bb.md?p=4) pursuant to [subsection (b)](#b) shall bear interest at a rate determined by the [Board](/usc/12/221a.md?p=a) of [Directors](/usc/12/2279bb.md?p=3) of the [Bank](/usc/12/1426a.md?p=g-1), and the [Board](/usc/12/221a.md?p=a) of [Directors](/usc/12/2279bb.md?p=3) may authorize an interest rate applicable to such advances lower than the rate applicable to loans by the [Bank](/usc/12/1426a.md?p=g-1) pursuant to [section 3018 of this title](/usc/12/3018.md).

## Source credit

(Pub. L. 95–351, title II, § 203, Aug. 20, 1978, 92 Stat. 512; Pub. L. 97–35, title III, § 396(g), Aug. 13, 1981, 95 Stat. 440.)

## Notes

### Editorial Notes

### Amendments

1981—Subsecs. (a), (b). Pub. L. 97–35 struck out references to the Account wherever appearing.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1981 Amendment

Amendment by Pub. L. 97–35 effective on the day after the Final Government Equity Redemption Date (Dec. 31, 1981), see section 396(i) of Pub. L. 97–35, set out as a note under section 3011 of this title.