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JUN-30-2000 13:51 UMB/LRD/RDI 202 395 5691 P.03/08 "Assets for Independence Act Amendments of 2000" Section-by-Section Summary NOTE: Except where otherwise specified, references in this summary to provisions of law are references to provisions of the Assets for Independence Act (the Act), title IV of the Community Opportunities, Accountability, and Training and Educational Services Act of 1998. SEC. 3. MATCHING CONTRIBUTIONS UNAVAILABLE FOR EMERGENCY WITHDRAWALS. This section amends section 404(5)(A) (which defines the term "Individual Development Account" (IDA) and specifies required IDA elements), in clause (v), to eliminate language which permits use of matching contributions by the qualified entity serving as IDA trustee for emergency withdrawals. As amended, clause (v) would permit use of matching contributions only for qualified expenses (as defined in section 404(8)). The amendment would eliminate the inconsistency between section 404(5)(A)(v) as currently drafted and section 404(3), which defines the term "emergency withdrawal" to mean a withdrawal by the eligible individual of some or all of the funds deposited by that individual for specified emergency situations. SEC. 4. ADDITIONAL QUALIFIED ENTITIES. This section amends section 404(7) (the definition of "qualified entity") to expand the category of entities cligible to operate IDA programs under the Act to include low-income credit unions (as designated by the National Credit Union Administration) and organizations designated as community development financial institutions by the Secretary of the Treasury (or the Community Development Financial Institutions Fund). SEC. 5. UNLIMITED HOME PURCHASE COSTS; PURCHASE OF AUTOMOBILE AS QUALIFIED EXPENSES. Section 5(a) amends section 407(8)(B) (which includes the purchase of a first home in the definition of "qualified expenses" for which IDA funds can be withdrawn by the participant) to eliminate the purchase price limit (currently 100 percent of the average arca purchase price for such a residence). Subsection (b) adds to section 407(8) a new subparagraph (D), providing that the purchase of an automobile is a qualified expense for which IDA funds can be withdrawn. SEC. 6. INCREASED SET-ASIDE FOR ECONOMIC LITERACY TRAINING AND ADMINISTRATIVE COSTS. 202 395 3130:# 3/ 8 00:01 : 0 -00-9 SENT BY

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    "ocrText": "JUN-30-2000 13:51\nUMB/LRD/RDI\n202 395 5691\nP.03/08\n\"Assets for Independence Act Amendments of 2000\"\nSection-by-Section Summary\nNOTE: Except where otherwise specified, references in this summary to provisions of law are\nreferences to provisions of the Assets for Independence Act (the Act), title IV of the Community\nOpportunities, Accountability, and Training and Educational Services Act of 1998.\nSEC. 3. MATCHING CONTRIBUTIONS UNAVAILABLE FOR EMERGENCY\nWITHDRAWALS.\nThis section amends section 404(5)(A) (which defines the term \"Individual Development\nAccount\" (IDA) and specifies required IDA elements), in clause (v), to eliminate language which\npermits use of matching contributions by the qualified entity serving as IDA trustee for\nemergency withdrawals. As amended, clause (v) would permit use of matching contributions\nonly for qualified expenses (as defined in section 404(8)). The amendment would eliminate the\ninconsistency between section 404(5)(A)(v) as currently drafted and section 404(3), which\ndefines the term \"emergency withdrawal\" to mean a withdrawal by the eligible individual of\nsome or all of the funds deposited by that individual for specified emergency situations.\nSEC. 4. ADDITIONAL QUALIFIED ENTITIES.\nThis section amends section 404(7) (the definition of \"qualified entity\") to expand the category\nof entities cligible to operate IDA programs under the Act to include low-income credit unions\n(as designated by the National Credit Union Administration) and organizations designated as\ncommunity development financial institutions by the Secretary of the Treasury (or the\nCommunity Development Financial Institutions Fund).\nSEC. 5. UNLIMITED HOME PURCHASE COSTS; PURCHASE OF AUTOMOBILE\nAS QUALIFIED EXPENSES.\nSection 5(a) amends section 407(8)(B) (which includes the purchase of a first home in the\ndefinition of \"qualified expenses\" for which IDA funds can be withdrawn by the participant) to\neliminate the purchase price limit (currently 100 percent of the average arca purchase price for\nsuch a residence).\nSubsection (b) adds to section 407(8) a new subparagraph (D), providing that the purchase of an\nautomobile is a qualified expense for which IDA funds can be withdrawn.\nSEC. 6. INCREASED SET-ASIDE FOR ECONOMIC LITERACY TRAINING AND\nADMINISTRATIVE COSTS.\n202 395 3130:# 3/ 8\n00:01 : 0 -00-9\nSENT BY"
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