110TH CONGRESS 

1ST SESSION H. R. 1066

AN ACT

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,
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1 SECTION 1. SHORT TITLE. 

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

3 Community Development Investments Enhancement Act’’. 

4 SEC. 2. TECHNICAL CORRECTIONS. 

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

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

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

8 24) (as amended by section 305(a) of the Financial Serv9 ices Regulatory Relief Act of 2006) is amended by striking 

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

11 inserting ‘‘is designed primarily to promote the public wel12 fare, including the welfare of’’. 

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

14 the 23rd undesignated paragraph of section 9 of the Fed15 eral Reserve Act (12 U.S.C. 338a) (as amended by section 

16 305(b) of the Financial Services Regulatory Relief Act of 

17 2006) is amended by striking ‘‘promotes the public welfare 

18 by benefiting primarily’’ and inserting ‘‘is designed pri19 marily to promote the public welfare, including the welfare 

20 of’’. 

21 SEC. 3. INVESTMENTS BY FEDERAL SAVINGS ASSOCIA22 TIONS AUTHORIZED TO PROMOTE THE PUB23 LIC WELFARE. 

24 (a) IN GENERAL.—Section 5(c)(3) of the Home Own25 ers’ Loan Act (12 U.S.C. 1464(c)) is amended by adding 

26 at the end the following new subparagraph: 
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1 ‘‘(D) DIRECT INVESTMENTS TO PROMOTE

2 THE PUBLIC WELFARE.—

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

4 association may make investments, directly 

5 or indirectly, each of which is designed pri6 marily to promote the public welfare, in7 cluding the welfare of low- and moderate8 income communities or families through 

9 the provision of housing, services, and jobs. 

10 ‘‘(ii) DIRECT INVESTMENTS OR ACQUI11 SITION OF INTEREST IN OTHER COMPA12 NIES.—Investments under clause (i) may 

13 be made directly or by purchasing interests 

14 in an entity primarily engaged in making 

15 such investments. 

16 ‘‘(iii) PROHIBITION ON UNLIMITED LI17 ABILITY.—No investment may be made 

18 under this subparagraph which would sub19 ject a Federal savings association to unlim20 ited liability to any person. 

21 ‘‘(iv) SINGLE INVESTMENT LIMITA22 TION TO BE ESTABLISHED BY DIREC23 TOR.—Subject to clauses (v) and (vi), the 

24 Director shall establish, by order or regula25 tion, limits on—
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1 ‘‘(I) the amount any savings as2 sociation may invest in any 1 project; 

3 and 

4 ‘‘(II) the aggregate amount of in5 vestment of any savings association 

6 under this subparagraph. 

7 ‘‘(v) FLEXIBLE AGGREGATE INVEST8 MENT LIMITATION.—The aggregate 

9 amount of investments of any savings asso10 ciation under this subparagraph may not 

11 exceed an amount equal to the sum of 5 

12 percent of the savings association’s capital 

13 stock actually paid in and unimpaired and 

14 5 percent of the savings association’s 

15 unimpaired surplus, unless—

16 ‘‘(I) the Director determines that 

17 the savings association is adequately 

18 capitalized; and 

19 ‘‘(II) the Director determines, by 

20 order, that the aggregate amount of 

21 investments in a higher amount than 

22 the limit under this clause will pose 

23 no significant risk to the affected de24 posit insurance fund. 
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1 ‘‘(vi) MAXIMUM AGGREGATE INVEST2 MENT LIMITATION.—Notwithstanding 

3 clause (v), the aggregate amount of invest4 ments of any savings association under 

5 this subparagraph may not exceed an 

6 amount equal to the sum of 15 percent of 

7 the savings association’s capital stock actu8 ally paid in and unimpaired and 15 per9 cent of the savings association’s 

10 unimpaired surplus. 

11 ‘‘(vii) INVESTMENTS NOT SUBJECT TO

12 OTHER LIMITATION ON QUALITY OF IN13 VESTMENTS.—No obligation a Federal sav14 ings association acquires or retains under 

15 this subparagraph shall be taken into ac16 count for purposes of the limitation con17 tained in section 28(d) of the Federal De18 posit Insurance Act on the acquisition and 

19 retention of any corporate debt security 

20 not of investment grade. 

21 ‘‘(viii) APPLICABILITY OF STANDARDS

22 TO EACH INVESTMENT.—The standards 

23 and limitations of this subparagraph shall 

24 apply to each investment under this sub-
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1 paragraph made by a savings association 

2 directly and by its subsidiaries.’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

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

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

6 ‘‘(A) [Repealed]’’. 

Passed the House of Representatives February 27, 

2007. 

Attest:

Clerk. 

110TH CONGRESS 

1ST SESSION H. R. 1066

AN ACT

To increase community development investments by 

depository institutions, and for other purposes.