Page:United States Statutes at Large Volume 105 Part 3.djvu/466

 105 STAT. 2350 PUBLIC LAW 102-242—DEC. 19, 1991 "(1) the Corporation has determined that the activity would pose no significant risk to the appropriate deposit insurance fund; and "(2) the State bank is, and continues to be, in compliance with applicable capital standards prescribed by the appropriate Federal banking agency. "(b) INSURANCE UNDERWRITING.— "(1) IN GENERAL.— Notwithstanding subsection (a), an insured State bank may not engage in insurance underwriting except to the extent that activity is permissible for national banks. "(2) EXCEPTION FOR CERTAIN FEDERALLY REINSURED CROP INSURANCE. — Notwithstanding any other provision of law, an insured State bank or any of its subsidiaries that provided insurance on or before September 30, 1991, which was reinsured in whole or in part by the Federal Crop Insurance Corporation may continue to provide such insurance.". " (c) EQUITY INVESTMENTS BY INSURED STATE BANKS.— "(1) IN GENERAL. — An insured State bank may not, directly or indirectly, acquire or retain any equity investment of a type that is not permissible for a national bank. " (2) EXCEPTION FOR CERTAIN SUBSIDIARIES.— Paragraph (1) shall not prohibit an insured State bank from acquiring or retaining an equity investment in a subsidiary of which the insured State bank is a majority owner. " (3) EXCEPTION FOR QUALIFIED HOUSING PROJECTS. — "(A) EXCEPTION. — Notwithstanding any other provision of this subsection, an insured State bank may invest as a limited partner in a partnership, the sole purpose of which is direct or indirect investment in the acquisition, rehabilitation, or new construction of a qualified housing project. "(B) LIMITATION.— The aggregate of the investments of any insured State bank pursuant to this paragraph shall not exceed 2 percent of the total assets of the bank. "(C) QUALIFIED HOUSING PROJECT DEFINED. —As used in this paragraph— "(i) QuAUFiED HOUSING PROJECT. —The term 'qualified housing project' means residential real estate that is intended to primarily benefit lower income people throughout the period of the investment. "(ii) LOWER INCOME.— The term lower income' means income that is less than or equal to the median income based on statistics from State or Federal sources. " (4) TRANSITION RULE.— "(A) IN GENERAL.—The Corporation shall require any insured State bank to divest any equity investment the retention of which is not permissible under this subsection as quickly as can be prudently done, and in any event before the end of the 5-year period beginning on the date of the enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991. " (B) TREATMENT OF NONCOMPLIANCE DURING DIVEST- MENT. —With respect to any equity investment held by any insured State bank on the date of enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991 which was lawfully acquired before such date, the bank shall be deemed not to be in violation of the prohibition in

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