S 2487 ISCommentsClose CommentsPermalink

To increase community development investments by depository institutions, and for other purposes.CommentsClose CommentsPermalink

December 14, 2007

Mr. CRAPO (for himself and Mr. JOHNSON) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban AffairsCommentsClose CommentsPermalink

To increase community development investments by depository institutions, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the `Depository Institution Community Development Investments Enhancement Act'.CommentsClose CommentsPermalink

SEC. 2. TECHNICAL CORRECTIONS.

(a) National Banks- The first sentence of the paragraph designated as the `Eleventh' of section 5136 of the Revised Statutes of the United States (12 U.S.C. 24) (as amended by section 305(a) of the Financial Services Regulatory Relief Act of 2006) is amended by striking `promotes the public welfare by benefitting primarily' and inserting `is designed primarily to promote the public welfare, including the welfare of'.CommentsClose CommentsPermalink





(b) State Member Banks- The first sentence of the 23rd paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 338a) is amended by striking `promotes the public welfare by benefiting primarily' and inserting `is designed primarily to promote the public welfare, including the welfare of'.CommentsClose CommentsPermalink

SEC. 3. INVESTMENTS BY FEDERAL SAVINGS ASSOCIATIONS AUTHORIZED TO PROMOTE THE PUBLIC WELFARE.

Section 5(c) of the Home Owners' Loan Act (12 U.S.C. 1464) is amended--CommentsClose CommentsPermalink





(1) in paragraph (3)--CommentsClose CommentsPermalink





(A) by striking subparagraph (A); andCommentsClose CommentsPermalink





(B) by redesignating subparagraphs (B) and (C), as subparagraphs (A) and (B), respectively; andCommentsClose CommentsPermalink





(2) in paragraph (4), by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(G) DIRECT INVESTMENTS TO PROMOTE THE PUBLIC WELFARE-CommentsClose CommentsPermalink





`(i) IN GENERAL- A Federal savings association may make investments, directly or indirectly, each of which is designed primarily to promote the public welfare, including the welfare of low- and moderate-income communities or families through the provision of housing, services, and jobs.CommentsClose CommentsPermalink





`(ii) DIRECT INVESTMENTS OR ACQUISITION OF INTEREST IN OTHER COMPANIES- Investments under clause (i) may be made directly or by purchasing interests in an entity primarily engaged in making such investments.CommentsClose CommentsPermalink





`(iii) PROHIBITION ON UNLIMITED LIABILITY- No investment may be made under this subparagraph which would subject a Federal savings association to unlimited liability to any person.CommentsClose CommentsPermalink





`(iv) SINGLE INVESTMENT LIMITATION TO BE ESTABLISHED BY DIRECTOR- Subject to clauses (v) and (vi), the Director shall establish, by order or regulation, limits on--CommentsClose CommentsPermalink





`(I) the amount that any savings association may invest in any 1 project; andCommentsClose CommentsPermalink





`(II) the aggregate amount of investment of any savings association under this subparagraph.CommentsClose CommentsPermalink





`(v) FLEXIBLE AGGREGATE INVESTMENT LIMITATION- The aggregate amount of investments of any savings association under this subparagraph may not exceed an amount equal to the sum of 5 percent of the capital stock of the savings association actually paid in and unimpaired and 5 percent of the unimpaired surplus of the savings association, unless--CommentsClose CommentsPermalink





`(I) the Director determines that the savings association is adequately capitalized; andCommentsClose CommentsPermalink





`(II) the Director determines, by order, that the aggregate amount of investments in a higher amount than the limit under this clause would pose no significant risk to the affected Deposit Insurance Fund.CommentsClose CommentsPermalink





`(vi) MAXIMUM AGGREGATE INVESTMENT LIMITATION- Notwithstanding clause (v), the aggregate amount of investments of any savings association under this subparagraph may not exceed an amount equal to the sum of 15 percent of the capital stock of the savings association actually paid in and unimpaired and 15 percent of the unimpaired surplus of the savings association.CommentsClose CommentsPermalink





`(vii) INVESTMENTS NOT SUBJECT TO OTHER LIMITATION ON QUALITY OF INVESTMENTS- No obligation that a Federal savings association acquires or retains under this subparagraph shall be taken into account for purposes of the limitation contained in section 28(d) of the Federal Deposit Insurance Act on the acquisition and retention of any corporate debt security not of investment grade.CommentsClose CommentsPermalink





`(viii) APPLICABILITY OF STANDARDS TO EACH INVESTMENT- The standards and limitations of this subparagraph shall apply to each investment under this subparagraph made by a savings association directly and by its subsidiaries.'.CommentsClose CommentsPermalink