Sec. 205. Raising public welfare caps
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The paragraph designated as the Eleventh. of section 5136 of the Revised Statutes of the United States ( 12 U.S.C. 24 ) is amended to read as follows: Eleventh. To make investments directly or indirectly, each of which promotes the public welfare by benefitting primarily low- and moderate-income communities or families (such as by providing housing, services, or jobs). An association shall not make any such investment if the investment would expose the association to unlimited liability.
The Comptroller of the Currency shall limit an association's investments in any 1 project and an association’s aggregate investments under this paragraph. Aggregate investments for associations that do not meet the criteria of being well capitalized, as defined in section 24.2(e) of title 12, Code of Federal Regulations, or any successor regulation, under this paragraph shall not exceed an amount equal to the sum of 5 percent of the association’s capital stock actually paid in and unimpaired and 5 percent of the association’s unimpaired surplus fund, unless the Comptroller determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund, and the association is adequately capitalized.
In no case shall aggregate investments of an association that do not meet the criteria for being well capitalized under this paragraph exceed an amount equal to the sum of 15 percent of the association’s capital stock actually paid in and unimpaired and 15 percent of the association’s unimpaired surplus fund. Aggregate investments of well capitalized associations, as defined in section 24.2(e) of title 12, Code of Federal Regulations, or any successor regulation, under this paragraph shall not exceed an amount equal to the sum of 15 percent of the association’s capital stock actually paid in and unimpaired and 15 percent of the association’s unimpaired surplus fund, unless the Comptroller determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund.
With respect to any association that meets the criteria for being well capitalized, as defined in section 24.2(e) of title 12, Code of Federal Regulations, or any successor regulation, aggregate investments under this paragraph shall not exceed an amount equal to the sum of 25 percent of the association’s capital stock actually paid in and unimpaired and 25 percent of the association’s unimpaired surplus fund. The foregoing standards and limitations apply to investments under this paragraph made by a national bank directly and by its subsidiaries. .
The 23rd undesignated paragraph of section 9 of the Federal Reserve Act ( 12 U.S.C. 338a ) is amended to read as follows: A State member bank may make investments directly or indirectly, each of which promotes the public welfare by benefitting primarily low- and moderate-income communities or families (such as by providing housing, services, or jobs), to the extent permissible under State law. A State member bank shall not make any such investment if the investment would expose the State member bank to unlimited liability.
Aggregate investments for State member banks that do not meet the criteria of being well capitalized, as defined in section 208.43(b) of title 12, Code of Federal Regulations, or any successor regulation, under this paragraph shall not exceed an amount equal to the sum of 5 percent of the association's capital stock actually paid in and unimpaired and 5 percent of the association’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 association is adequately capitalized.
In no case shall aggregate investments of a State member bank that does not meet the criteria for being well capitalized under this paragraph exceed an amount equal to the sum of 15 percent of the association’s capital stock actually paid in and unimpaired and 15 percent of the association’s unimpaired surplus fund. Aggregate investments of well capitalized State member banks, as defined in section 208.43(b) of title 12, Code of Federal Regulations, or any successor regulation, with an examination rating under section 804 of the Community Reinvestment Act of 1977 ( 12 U.S.C. 2903 ) of outstanding or satisfactory , under this paragraph shall not exceed an amount equal to the sum of 15 percent of the State member bank’s capital stock actually paid in and unimpaired and 15 percent of the state member 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.
With respect to any State member bank that meets meet the criteria for being well capitalized as defined in section 208.43(b) of title 12, Code of Federal Regulations, or any successor regulation, with an examination rating under section 804 of the Community Reinvestment Act of 1977 ( 12 U.S.C. 2903 ) of outstanding or satisfactory , aggregate investments under this paragraph shall not exceed an amount equal to the sum of 25 percent of the State member bank’s capital stock actually paid in and unimpaired and 25 percent of the State member bank’s unimpaired surplus fund.
The foregoing standards and limitations apply to investments under this paragraph made by a State member bank directly and by its subsidiaries. .
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