§ 338a. — Investments to promote public welfare and community development; limitation on investments.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC338a]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER VIII--STATE BANKS AS MEMBERS OF SYSTEM
Sec. 338a. Investments to promote public welfare and community
development; limitation on investments
State member banks may make investments designed primarily to
promote the public welfare, including the welfare of low- and moderate-
income communities or families (such as by providing housing, services,
or jobs), to the extent permissible under State law, and subject to such
restrictions and requirements as the Board of Governors of the Federal
Reserve System may prescribe by regulation or order. A bank shall not
make any such investment if the investment would expose the bank to
unlimited liability. The Board shall limit a bank's investments in any 1
project and \1\ bank's aggregate investments under this paragraph. A
bank's aggregate investments under this paragraph shall not exceed an
amount equal to the sum of 5 percent of the bank's capital stock
actually paid in and unimpaired and 5 percent of the bank's unimpaired
surplus fund, unless the Board determines by order that the higher
amount will pose no significant risk to the affected deposit insurance
fund, and the bank is adequately capitalized. In no case shall a bank's
aggregate investments under this paragraph exceed an amount equal to the
sum of 10 percent of the bank's capital stock actually paid in and
unimpaired and 10 percent of the bank's unimpaired surplus fund.
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\1\ So in original. Probably should be ``and a''.
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(Dec. 23, 1913, ch. 6, Sec. 9 (par.), as added Pub. L. 102-485,
Sec. 6(b), Oct. 23, 1992, 106 Stat. 2774; amended Pub. L. 104-208, div.
A, title II, Sec. 2704(d)(8), Sept. 30, 1996, 110 Stat. 3009-489.)
Codification
Section is comprised of the twenty-third par. of section 9 of act
Dec. 23, 1913, as amended. For further details, see Codification note
set out under section 321 of this title.
Amendments
1996--Pub. L. 104--208, which directed the amendment of the fourth
sentence by substituting ``Deposit Insurance Fund'' for ``affected
deposit insurance fund'', was not executed. See Effective Date of 1996
Amendment note below.
Effective Date of 1996 Amendment
Amendment by Pub. L. 104-208 effective Jan. 1, 1999, if no insured
depository institution is a savings association on that date, see
section 2704(c) of Pub. L. 104-208, set out as a note under section 1821
of this title.
