IIB 
110TH CONGRESS 
1ST SESSION H. R. 1066 
IN THE SENATE OF THE UNITED STATES 
FEBRUARY 28, 2007 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To increase community development investments by 
depository 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 ‘‘Depository Institution 
Community Development Investments Enhancement Act’’. 
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 Serv-
ices Regulatory Relief Act of 2006) is amended by striking 
‘‘promotes the public welfare by benefiting primarily’’ and 
inserting ‘‘is designed primarily to promote the public wel-
fare, including the welfare of’’. 
(b) STATE MEMBER BANKS.—The first sentence of 
the 23rd undesignated paragraph of section 9 of the Fed-
eral Reserve Act (12 U.S.C. 338a) (as amended by section 
305(b) of the Financial Services Regulatory Relief Act of 
2006) is amended by striking ‘‘promotes the public welfare 
by benefiting primarily’’ and inserting ‘‘is designed pri-
marily to promote the public welfare, including the welfare 
of’’. 
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: 
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‘‘(D) DIRECT INVESTMENTS TO PROMOTE 
THE PUBLIC WELFARE.— 
‘‘(i) IN GENERAL.—A Federal savings 
association may make investments, directly 
or indirectly, each of which is designed pri-
marily to promote the public welfare, in-
cluding 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. 
‘‘(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— 
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‘‘(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 
investments in a higher amount than 
the limit under this clause will pose 
no significant risk to the affected de-
posit insurance fund. 
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‘‘(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. 
‘‘(viii) APPLICABILITY OF STANDARDS 
TO
EACH
INVESTMENT.—The standards 
and limitations of this subparagraph shall 
apply to each investment under this sub-
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