IIB 
109TH CONGRESS 
2D SESSION 
H. R. 6062 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 28, 2006 
Received 
NOVEMBER 13, 2006 
Read twice and referred to the Committee on Banking, Housing, and Urban 
Affairs 
AN ACT 
To enhance community development investments by financial 
institutions, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Community Develop-
ment Investment Enhancements Act of 2006’’. 
SEC. 2. ENHANCING THE AUTHORITY FOR NATIONAL 
BANKS TO MAKE COMMUNITY DEVELOPMENT 
INVESTMENTS. 
(a) NATIONAL BANKS.—The last sentence in the 
paragraph designated as the ‘‘Eleventh.’’ of section 5136 
of the Revised Statutes of the United States (12 U.S.C. 
24) is amended— 
(1) by striking ‘‘10 percent’’ each place such 
term appears and inserting ‘‘15 percent’’; and 
(2) by adding at the end the following new sen-
tence: ‘‘The preceding standards and limitations 
apply to each investment under this paragraph made 
by a national bank directly and by its subsidiaries.’’. 
(b) STATE MEMBER BANKS.—The last sentence of 
the 23rd undesignated paragraph of section 9 of the Fed-
eral Reserve Act (12 U.S.C. 338a) is amended— 
(1) by striking ‘‘10 percent’’ each place such 
term appears and inserting ‘‘15 percent’’; and 
(2) by adding at the end the following new sen-
tence: ‘‘The preceding standards and limitations 
apply to each investment under this paragraph made 
by a State member bank directly and by its subsidi-
aries.’’. 
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SEC. 3. INVESTMENTS BY FEDERAL SAVINGS ASSOCIA-
TIONS AUTHORIZED TO PROMOTE THE PUB-
LIC WELFARE. 
(a) IN GENERAL.—Section 5(c)(3) of the Home Own-
ers’ Loan Act (12 U.S.C. 1464(c)) is amended by adding 
at the end the following new subparagraph: 
‘‘(D) DIRECT INVESTMENTS TO PROMOTE 
THE PUBLIC WELFARE.— 
‘‘(i) IN GENERAL.—A Federal savings 
association may make investments de-
signed primarily to promote the public wel-
fare, including the welfare of low- and 
moderate-income communities or families 
through the provision of housing, services, 
and jobs. 
‘‘(ii) DIRECT INVESTMENTS OR ACQUI-
SITION
OF
INTEREST
IN
OTHER
COMPA-
NIES.—Investments under clause (i) may 
be made directly or by purchasing interests 
in an entity primarily engaged in making 
such investments. 
‘‘(iii) PROHIBITION ON UNLIMITED LI-
ABILITY.—No investment may be made 
under this subparagraph which would sub-
ject a Federal savings association to unlim-
ited liability to any person. 
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‘‘(iv) SINGLE
INVESTMENT
LIMITA-
TION
TO
BE
ESTABLISHED
BY
DIREC-
TOR.—Subject to clauses (v) and (vi), the 
Director shall establish, by order or regula-
tion, limits on— 
‘‘(I) the amount any savings as-
sociation may invest in any 1 project; 
and 
‘‘(II) the aggregate amount of in-
vestment of any savings association 
under this subparagraph. 
‘‘(v) FLEXIBLE AGGREGATE INVEST-
MENT
LIMITATION.—The 
aggregate 
amount of investments of any savings asso-
ciation under this subparagraph may not 
exceed an amount equal to the sum of 5 
percent of the savings association’s capital 
stock actually paid in and unimpaired and 
5 percent of the savings association’s 
unimpaired surplus, unless— 
‘‘(I) the Director determines that 
the savings association is adequately 
capitalized; and 
‘‘(II) the Director determines, by 
order, that the aggregate amount of 
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investments in a higher amount than 
the limit under this clause will pose 
no significant risk to the affected de-
posit insurance fund. 
‘‘(vi) MAXIMUM AGGREGATE INVEST-
MENT
LIMITATION.—Notwithstanding 
clause (v), the aggregate amount of invest-
ments of any savings association under 
this subparagraph may not exceed an 
amount equal to the sum of 15 percent of 
the savings association’s capital stock actu-
ally paid in and unimpaired and 15 per-
cent 
of 
the 
savings 
association’s 
unimpaired surplus. 
‘‘(vii) INVESTMENTS NOT SUBJECT TO 
OTHER
LIMITATION
ON
QUALITY
OF
IN-
VESTMENTS.—No obligation a Federal sav-
ings association acquires or retains under 
this subparagraph shall be taken into ac-
count for purposes of the limitation con-
tained in section 28(d) of the Federal De-
posit Insurance Act on the acquisition and 
retention of any corporate debt security 
not of investment grade. 
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