SEC. 206. ENHANCED PASSIVE INVESTMENTS AUTHORIZED
FOR COMMUNITY DEVELOPMENT ACTIVITIES.
(a) IN GENERAL.—Section 4(c) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(c)) is amended
by adding the following paragraph:
‘‘(15) shares of any company located and pri-
marily doing business in a qualified distressed com-
munity as defined in section 233(b) of the Bank En-
terprise Act of 1991 to the extent that—
‘‘(A) the total amount of the shares of
such company acquired or retained in accord-
ance with this paragraph (by the bank holding
company and any subsidiary of the bank hold-
ing company) does not exceed 25 percent of the
outstanding voting shares of the company;
‘‘(B) the company is not under the oper-
ational control, directly or indirectly, of the
bank holding company;
‘‘(C) the company does not engage in real
estate or real estate related activities not per-
missible for a national bank; and
‘‘(D) the Board has been given notice by
the bank holding company of its intent to ac-
quire or retain the shares of such company in
accordance with this paragraph and has not
disapproved the acquisition within 45 days
based on a finding that such acquisition or re-
tention of shares would adversely affect the
safety and soundness of insured depository in-
stitution affiliates.’’.
(b) CONFORMING AMENDMENT.—Section 2(a)(3) of
the Bank Holding Company Act of 1956 (12 U.S.C.
1841(a)) is amended by redesignating paragraphs (4), (5),
and (6) as paragraphs (5), (6), and (7), respectively, and
by inserting after paragraph (3) the following new para-
graph:
‘‘(4) For the purpose of any proceeding under para-
graph (2)(C) or to which paragraph (5) applies, there shall
be a presumption that any company which owns, controls,
or has the power to vote not more than 25 percent of any
class of voting stock of any company as authorized by,
and in conformity with, section 4(c)(15) of this Act does
not control such company.’’.
SEC. 207. AWARDS PROGRAM.
The Financial Institutions Examination Council shall
establish an annual awards program to publicly recognize
tangible examples of outstanding efforts by insured depos-
itory institutions to meet the credit needs of their commu-
nities.
SEC. 208. QUALIFIED STOCK ISSUANCES FOR MINORITY
THRIFTS.
Section 10(q) of the Home Owners’ Loan Act (12
U.S.C. 1467a(q)) is amended—
(1) by striking ‘‘undercapitalized’’ each place
such term appears and inserting ‘‘eligible’’;
(2) in paragraph (1)(F), by striking ‘‘has cap-
ital’’ and all that follows through the period and in-
serting ‘‘is adequately capitalized as determined
under section 38 of the Federal Deposit Insurance
Act.’’;
(3) in paragraph (1)(G), by striking ‘‘not more
than 15’’ and inserting ‘‘less than 25’’; and
(4) by striking subparagraphs (A) and (B) of
paragraph (4) and inserting the following new sub-
paragraphs:
‘‘(A) that is undercapitalized (as deter-
mined under section 38 of the Federal Deposit
Insurance Act); or
‘‘(B) that is a minority depository institu-
tion (as defined in section 308(b) of Financial
Institutions Reform, Recovery, and Enforce-
ment Act of 1989).’’.
TITLE III—HOUSING AND SMALL
BUSINESS FINANCE
SEC. 301. MEETING UNMET HOUSING AND COMMUNITY
CREDIT NEEDS THROUGH THE FEDERAL
HOME LOAN BANK SYSTEM.
Section 10 of the Federal Home Loan Bank Act (12
U.S.C. 1430) is amended by adding at the end the follow-
ing new subsection:
‘‘(k) MEETING UNMET HOUSING AND COMMUNITY
DEVELOPMENT NEEDS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
the Federal home loan banks may establish pro-
grams and engage in activities to meet housing fi-
nance and community development needs in quali-
fied distressed communities that cannot be met or
are not being met by the private sector of the econ-
omy.
‘‘(2) NOTICE PROCEDURES.—
‘‘(A) NOTICE REQUIREMENT.—A Federal
home loan bank may not engage in any new
program or activity under paragraph (1) with-
out providing the Board with written notice of
the proposed program or activity at least 30
days before the program or activity is proposed
to commence.
‘‘(B) NOTICE OF DISAPPROVAL.—Any no-
tice filed under this subsection shall be deemed
to be approved by the Board unless, before the
end of the 30-day period beginning on the date
the Board receives a notice under subparagraph
(A), the Board issues an order disapproving the
program or activity and setting forth the rea-
sons for disapproval.
‘‘(C) APPROVAL
BEFORE
END
OF
PE-
RIOD.—
‘‘(i) IN
GENERAL.—Any transaction
or activity may commence before the expi-
ration of any period for disapproval estab-
lished under this paragraph if the Board
issues a written notice of approval.
‘‘(ii) SHORTER PERIODS BY REGULA-
TION.—The Board may prescribe regula-
tions which provide for no notice under
this paragraph or for a shorter notice pe-
riod with respect to particular programs or
activities.’’.
SEC. 302. GOVERNMENT SPONSORED ENTERPRISE PUR-
CHASE GOALS.
(a) 
LOW- 
AND
MODERATE-INCOME
HOUSING
GOALS.—Section 1332(a) of the Federal Housing Enter-