AB 981 Summary

• Expands the definition of "financial institution" under the Capital Access Loan Program to include insured depository institutions, insured credit unions, and community development financial institutions as defined under federal law (12 U.S.C. Section 4702).

• Authorizes the California Pollution Control Financing Authority to withdraw a portion (rather than all) of interest or other income credited to loss reserve accounts for administrative costs and program operations.

• Increases the authority's required contribution to loss reserve accounts for loans to businesses in severely affected communities from 150% of fees paid by the financial institution to a minimum of 150% of those fees.

• Incorporates conditional amendments from Assembly Bill 901 to Section 44559.1 that become operative only if both bills are enacted and effective by January 1, 2012, with AB 981 chaptered last.