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Code · U.S. Code · Title 12 - BANKS AND BANKING · CHAPTER 3— FEDERAL RESERVE SYSTEM · SUBCHAPTER VIII— STATE BANKS AS MEMBERS OF SYSTEM · § 338a

§ 338a. Investments to promote public welfare and community development; limitation on investments

843 words·~4 min read·/usc/title-12/section-338a

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A State member bank may make investments directly or indirectly, each of which is 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. A State member bank shall not make any such investment if the investment would expose the State member bank to unlimited liability. The Board shall limit a State member bank’s investment in any 1 project and a State member bank’s aggregate investments under this paragraph.
The aggregate amount of investments of any State member bank under this paragraph may not exceed an amount equal to the sum of 5 percent of the State member bank’s capital stock actually paid in and unimpaired and 5 percent of the State member bank’s unimpaired surplus, unless the Board determines, by order, that a higher amount will pose no significant risk to the affected deposit insurance fund; and the State member bank is adequately capitalized. In no case shall the aggregate amount of investments of any State member bank under this paragraph 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.
The foregoing standards and limitations apply to investments under this paragraph made by a State member bank directly and by its subsidiaries.
(Dec. 23, 1913, ch. 6, § 9(23), formerly § 9 (par.), as added Pub. L. 102–485, § 6(b), Oct. 23, 1992, 106 Stat. 2774; amended Pub. L. 104–208, div. A, title II, § 2704(d)(8), Sept. 30, 1996, 110 Stat. 3009–489; Pub. L. 109–171, title II, § 2102(b), Feb. 8, 2006, 120 Stat. 9; Pub. L. 109–173, § 9(b), Feb. 15, 2006, 119 Stat. 3616; renumbered § 9(23) and amended Pub. L. 109–351, title III, § 305(b), Oct. 13, 2006, 120 Stat. 1971; Pub. L. 110–289, div. B, title V, § 2503(b), July 30, 2008, 122 Stat. 2857.)
Connections59 cite this · traces to 3
Cited by 59 sections · top 46
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22 references not yet in our index
  • Dec. 23, 1913, ch. 6, § 9(23)
  • Pub. L. 102–485, § 6(b)
  • 106 Stat. 2774
  • Pub. L. 104–208, div. A, title II, § 2704(d)(8)
  • 110 Stat. 3009–489
  • Pub. L. 109–171, title II, § 2102(b)
  • 120 Stat. 9
  • Pub. L. 109–173, § 9(b)
  • 119 Stat. 3616
  • Pub. L. 109–351, title III, § 305(b)
  • 120 Stat. 1971
  • Pub. L. 110–289, div. B, title V, § 2503(b)
  • 122 Stat. 2857
  • Pub. L. 110–289
  • Pub. L. 109–351
  • Pub. L. 109–173
  • Pub. L. 109–171
  • Pub. L. 104–208, § 2704(d)(8)
  • section 9(j) of Pub. L. 109–173
  • section 2102(c) of Pub. L. 109–171
  • Pub. L. 104–208
  • section 2704(c) of Pub. L. 104–208
Citation graph
cites case law
§ 338a
Investments to promote public welfare and community development; limitation on investments
Fed. Reg.×32
Bills×12
C.F.R.×9
Stat.×5
Stat. Comp.×1
ActDec. 23, 1913, ch. 6, § 9(23)
Pub. L.Pub. L. 102–485, § 6(b)
Stat.106 Stat. 2774
Pub. L.Pub. L. 104–208, div. A, title II, § 2704(d)(8)
Stat.110 Stat. 3009–489
Cites 25 · showing 8Cited by 59 across 5 sources
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