I 

110TH CONGRESS 

1ST SESSION H. R. 1066 

To increase community development investments by depository institutions, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 15, 2007 

Mr. FRANK of Massachusetts (for himself and Mr. BACHUS) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To increase community development investments by 

depository institutions, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Depository Institution 

5 Community Development Investments Enhancement Act’’. 

6 SEC. 2. TECHNICAL CORRECTIONS. 

7 (a) NATIONAL BANKS.—The first sentence of the 

8 paragraph designated as the ‘‘Eleventh’’ of section 5136 

9 of the Revised Statutes of the United States (12 U.S.C. 

10 24) (as amended by section 305(a) of the Financial Servmstockstill on PROD1PC66 with BILLS

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1 ices Regulatory Relief Act of 2006) is amended by striking 

2 ‘‘promotes the public welfare by benefiting primarily’’ and 

3 inserting ‘‘is designed primarily to promote the public wel4 fare, including the welfare of’’. 

5 (b) STATE MEMBER BANKS.—The first sentence of 

6 the 23rd undesignated paragraph of section 9 of the Fed7 eral Reserve Act (12 U.S.C. 338a) (as amended by section 

8 305(b) of the Financial Services Regulatory Relief Act of 

9 2006) is amended by striking ‘‘promotes the public welfare 

10 by benefiting primarily’’ and inserting ‘‘is designed pri11 marily to promote the public welfare, including the welfare 

12 of’’. 

13 SEC. 3. INVESTMENTS BY FEDERAL SAVINGS ASSOCIA14 TIONS AUTHORIZED TO PROMOTE THE PUB15 LIC WELFARE. 

16 (a) IN GENERAL.—Section 5(c)(3) of the Home Own17 ers’ Loan Act (12 U.S.C. 1464(c)) is amended by adding 

18 at the end the following new subparagraph: 

19 ‘‘(D) DIRECT INVESTMENTS TO PROMOTE

20 THE PUBLIC WELFARE.— 

21 ‘‘(i) IN GENERAL.—A Federal savings 

22 association may make investments, directly 

23 or indirectly, each of which is designed pri24 marily to promote the public welfare, in25 cluding the welfare of low- and moderatemstockstill on PROD1PC66 with BILLS

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1 income communities or families through 

2 the provision of housing, services, and jobs. 

3 ‘‘(ii) DIRECT INVESTMENTS OR ACQUI4 SITION OF INTEREST IN OTHER COMPA5 NIES.—Investments under clause (i) may 

6 be made directly or by purchasing interests 

7 in an entity primarily engaged in making 

8 such investments. 

9 ‘‘(iii) PROHIBITION ON UNLIMITED LI10 ABILITY.—No investment may be made 

11 under this subparagraph which would sub12 ject a Federal savings association to unlim13 ited liability to any person. 

14 ‘‘(iv) SINGLE INVESTMENT LIMITA15 TION TO BE ESTABLISHED BY DIREC16 TOR.—Subject to clauses (v) and (vi), the 

17 Director shall establish, by order or regula18 tion, limits on— 

19 ‘‘(I) the amount any savings as20 sociation may invest in any 1 project; 

21 and 

22 ‘‘(II) the aggregate amount of in23 vestment of any savings association 

24 under this subparagraph. 

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1 ‘‘(v) FLEXIBLE AGGREGATE INVEST2 MENT LIMITATION.—The aggregate 

3 amount of investments of any savings asso4 ciation under this subparagraph may not 

5 exceed an amount equal to the sum of 5 

6 percent of the savings association’s capital 

7 stock actually paid in and unimpaired and 

8 5 percent of the savings association’s 

9 unimpaired surplus, unless— 

10 ‘‘(I) the Director determines that 

11 the savings association is adequately 

12 capitalized; and 

13 ‘‘(II) the Director determines, by 

14 order, that the aggregate amount of 

15 investments in a higher amount than 

16 the limit under this clause will pose 

17 no significant risk to the affected de18 posit insurance fund. 

19 ‘‘(vi) MAXIMUM AGGREGATE INVEST20 MENT LIMITATION.—Notwithstanding 

21 clause (v), the aggregate amount of invest22 ments of any savings association under 

23 this subparagraph may not exceed an 

24 amount equal to the sum of 15 percent of 

25 the savings association’s capital stock actumstockstill on PROD1PC66 with BILLS

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1 ally paid in and unimpaired and 15 per2 cent of the savings association’s 

3 unimpaired surplus. 

4 ‘‘(vii) INVESTMENTS NOT SUBJECT TO

5 OTHER LIMITATION ON QUALITY OF IN6 VESTMENTS.—No obligation a Federal sav7 ings association acquires or retains under 

8 this subparagraph shall be taken into ac9 count for purposes of the limitation con10 tained in section 28(d) of the Federal De11 posit Insurance Act on the acquisition and 

12 retention of any corporate debt security 

13 not of investment grade. 

14 ‘‘(viii) APPLICABILITY OF STANDARDS

15 TO EACH INVESTMENT.—The standards 

16 and limitations of this subparagraph shall 

17 apply to each investment under this sub18 paragraph made by a savings association 

19 directly and by its subsidiaries.’’. 

20 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

21 Section 5(c)(3)(A) of the Home Owners’ Loan Act (12 

22 U.S.C. 1464(c)(3)(A)) is amended to read as follows: 

23 ‘‘(A) [Repealed]’’. 

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