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

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1913

   Depository Institutions Disaster Relief Act of 1992

   Pub. L. 102–485 § 6(b) · 106 Stat. 2771

   Enacted · 12 U.S.C. § 338a

   Dec. 23, 1913, ch. 6, § 9(23), formerly § 9 (par.), as added Pub. L. 102–485, § 6(b), Oct. 23, 1992, 106 Stat. 2774

   Source evidence

   Code source credit
   Dec. 23, 1913, ch. 6, § 9(23), formerly § 9 (par.), as added Pub. L. 102–485, § 6(b), Oct. 23, 1992, 106 Stat. 2774

   Enacted provision · exact public law section
   (6) the National Credit Union Administration; and

2. 2006

   Federal Deposit Insurance Reform Act of 2005

   Pub. L. 109–171 title II § 2102(b) · 120 Stat. 4

   Repealed · 12 U.S.C. § 338a

   Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(8). See 1996 Amendment note below

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(8). See 1996 Amendment note below.

   Enacted provision · exact public law section
   (b) Repeal of Outdated Merger Provision.— Section 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.

   Effective date note
   Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 9(j) of Pub. L. 109–173, set out as a note under section 24 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

3. 1996

   Federal Deposit Insurance Reform Act of 2005

   Pub. L. 109–171 title II § 2102(b) · 120 Stat. 4

   Changed · 12 U.S.C. § 338a

   Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above

   Source evidence

   Code amendment note
   Pub. L. 104—208, § 2704(d)(8), which directed the amendment of the fourth sentence by substituting “Deposit Insurance Fund” for “affected deposit insurance fund”, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

   Enacted provision · exact public law section
   (b) Repeal of Outdated Merger Provision.— Section 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.

   Effective date note
   Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 9(j) of Pub. L. 109–173, set out as a note under section 24 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

4. 2006

   Federal Deposit Insurance Reform Conforming Amendments Act of 2005

   Pub. L. 109–173 § 9(b) · 119 Stat. 3601

   Substituted · 12 U.S.C. § 338a

   Pub. L. 109–173, in fourth sentence, substituted “Deposit Insurance Fund” for “affected deposit insurance fund”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 109–173, in fourth sentence, substituted “Deposit Insurance Fund” for “affected deposit insurance fund”.

   Enacted provision · exact public law section
   (b) Investments Promoting Public Welfare; Limitations on Aggregate Investments.— The 23d undesignated paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 338a) is amended in the 4th sentence, by striking “affected deposit insurance fund” and inserting “Deposit Insurance Fund”.

   Effective date note
   Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 9(j) of Pub. L. 109–173, set out as a note under section 24 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

5. 2006

   Pub. L. 109–351 title III § 305(b) · 120 Stat. 1966

   Amended · 12 U.S.C. § 338a

   Pub. L. 109–351 amended section generally. Prior to amendment, section read as follows: “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 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 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.”

   Source evidence

   Code amendment note
   Pub. L. 109–351 amended section generally. Prior to amendment, section read as follows: “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 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 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.”

   Enacted provision · exact public law section
   (b) Conforming Amendments for State Member Banks.— The 23rd undesignated paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 338a) is amended to read as follows: “(23) A State member bank may make investments directly or indirectly, each of which promotes the public welfare by benefiting 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. 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.” .

6. 2008

   Mortgage Disclosure Improvement Act of 2008

   Pub. L. 110–289 div. B title V § 2503(b) · 122 Stat. 2654

   Substituted · 12 U.S.C. § 338a

   Pub. L. 110–289, which directed substitution of “is designed primarily to promote the public welfare, including the welfare of” for “promotes the public welfare by benefitting primarily” in first sentence, was executed by making the substitution for “promotes the public welfare by benefiting primarily” to reflect the probable intent of Congress

   Source evidence

   Code amendment note
   Pub. L. 110–289, which directed substitution of “is designed primarily to promote the public welfare, including the welfare of” for “promotes the public welfare by benefitting primarily” in first sentence, was executed by making the substitution for “promotes the public welfare by benefiting primarily” to reflect the probable intent of Congress.

   Enacted provision · exact public law section
   (b) 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”.

7. 2026

   Pub. L. 119–101 title II § 203(b) · 140 Stat. 868

   Substituted · 12 U.S.C. § 338a

   Pub. L. 119–101 substituted “20” for “15” in two places in fifth sentence

   Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

   Source evidence

   Code amendment note
   Pub. L. 119–101 substituted “20” for “15” in two places in fifth sentence.

6 of 7 references resolved to an enrolled provision · 1 unresolved