To restore investment authority of certain banks and savings associations to the types of public welfare activities previously permitted by law and regulation.

SA 4464. Mr. CRAPO (for himself and Mr. Johnson) submitted an
amendment intended to be proposed by him to the bill H.R. 3221, moving
the United States toward greater energy independence and security,
developing innovative new technologies, reducing carbon emissions,
creating green jobs, protecting consumers, increasing clean renewable
energy production, and modernizing our energy infrastructure, and to
amend the Internal Revenue Code of 1986 to provide tax incentives for
the production of renewable energy and energy conservation; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. COMMUNITY DEVELOPMENT INVESTMENT AUTHORITY FOR
DEPOSITORY INSTITUTIONS.

(a) Depository Institution Community Development
Investments.--
(1) 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 Services Regulatory Relief
Act of 2006) is amended by striking ``promotes the public
welfare by benefitting primarily'' and inserting ``is
designed primarily to promote the public welfare, including
the welfare of''.
(2) State member banks.--The first sentence of the 23rd
paragraph of section 9 of the Federal Reserve Act (12 U.S.C.
338a) is amended by striking ``promotes the public welfare by
benefitting primarily'' and inserting ``is designed primarily
to promote the public welfare, including the welfare of''.
(b) Investments by Federal Savings Associations to Promote
Public Welfare.--Section 5(c) of the Home Owners' Loan Act
(12 U.S.C. 1464(c)) is amended--
(1) in paragraph (3)--
(A) by striking subparagraph (A); and
(B) by redesignating subparagraphs (B) and (C), as
subparagraphs (A) and (B), respectively; and
(2) in paragraph (4), by adding at the end the following
new subparagraph:
``(G) 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 primarily to promote the public welfare, including
the welfare of low- and moderate-income communities or
families through the provision of housing, services, and
jobs.
``(ii) Direct investments or acquisition of interest in
other companies.--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 liability.--No investment
may be made under this subparagraph which would subject a
Federal savings association to unlimited liability to any
person.
``(iv) Single investment limitation to be established by
director.--Subject to clauses (v) and (vi), the Director
shall establish, by order or regulation, limits on--

``(I) the amount that any savings association may invest in
any 1 project; and
``(II) the aggregate amount of investment of any savings
association under this subparagraph.

``(v) Flexible aggregate investment limitation.--The
aggregate amount of investments of any savings association
under this subparagraph may not exceed an amount equal to the
sum of 5 percent of the capital stock of the savings
association actually paid in and unimpaired and 5 percent of
the unimpaired surplus of the savings association, 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 would pose no significant risk to the
affected Deposit Insurance Fund.

``(vi) Maximum aggregate investment limitation.--
Notwithstanding clause (v), the aggregate amount of
investments of any savings association under this
subparagraph may not exceed an amount equal to the sum of 15
percent of the capital stock of the savings association
actually paid in and unimpaired and 15 percent of the
unimpaired surplus of the savings association.
``(vii) Investments not subject to other limitation on
quality of investments.--No obligation that a Federal savings
association acquires or retains under this subparagraph shall
be taken into account for purposes of the limitation
contained in section 28(d) of the Federal Deposit 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 subparagraph made by a
savings association directly and by its subsidiaries.''.
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