Page:United States Statutes at Large Volume 103 Part 1.djvu/316

 103 STAT. 288 PUBLIC LAW 101-73—AUG. 9, 1989 Securities. Housing. "(d) tions chartered by such State are authorized. The aggregate amount of such investments, loans, and commitments of any such Federal savings association shall not exceed one- half of 1 percent of the association's total outstanding loans or $250,000, whichever is less. "(B) SERVICE CORPORATIONS.— Investments in the capital stock, obligations, or other securities of any corporation organized under the laws of the State in which the Federal savings association's home office is located, if such corpora- tion's entire capital stock is available for purchase only by savings associations of such State and by Federal associa- tions having their home offices in such State. No Federal savings association may make any investment under this subparagraph if the association's aggregate outstanding investment under this subparagraph would exceed 3 per- cent of the association's assets. Not less than one-half of the investment permitted under this subparagraph which ex- ceeds 1 percent of the association's assets shall be used primarily for community, inner-city, and community devel- opment purposes. "(C) FOREIGN ASSISTANCE INVESTMENTS.—Investments in housing project loans having the benefit of any guaranty under section 221 of the Foreign Assistance Act of 1961 or loans having the benefit of any guarantee under section 224 of such Act, or any commitment or agreement with respect to such loans made pursuant to either of such sections and in the share capital and capital reserve of the Inter-Amer- ican Savings and Loan Bank. This authority extends to the acquisition, holding, and disposition of loans guaranteed under section 221 or 222 of such Act. Investments under this subparagraph shall not exceed 1 percent of the Federal savings association's assets. "(D) SMALL BUSINESS INVESTMENT COMPANIES.— A Federal savings association may invest in stock, obligations, or other securities of any small business investment company formed pursuant to section 301(d) of the Small Business Investment Act of 1958 for the purpose of aiding members of a Federal home loan bank. A Federal savings association may not make any investment under this subparagraph if its aggregate outstanding investment under this subpara- graph would exceed 1 percent of the assets of such savings association. "(5) DEFINITIONS. —As used in this subsection— "(A) RESIDENTIAL PROPERTY.—The terms 'residential real property' or 'residential real estate' mean leaseholds, homes (including condominiums and cooperatives, except that in connection with loans on individual cooperative units, such loans shall be adequately secured as defined by the Director) and, combinations of homes or dwelling units and business property, involving only minor or incidental business use, or property to be improved by construction of such structures. "(B) LOANS.— The term 'loans' includes obligations and extensions or advances of credit; and any reference to a loan or investment includes an interest in such a loan or investment. REGULATORY AUTHORITY. —

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