US Laws, Codes, Statutes & Cases

(1) Any bank may make a community development investment or investments either directly or through purchasing an equity interest in or an evidence of indebtedness of an entity primarily engaged in making community development investments, if the following conditions are satisfied:

(a) An investment under this subsection does not expose the bank to unlimited liability;

(b) The bank's aggregate investment under this subsection does not exceed ten percent of its capital and surplus. If the bank's investment in any one entity will exceed five percent of its capital and surplus, the prior written approval of the department must be obtained; and

(c) All investments made under this subsection are accounted for on the bank's books under "Other Assets".

(2) Nothing in this section shall prevent a bank from charging off as a contribution an investment made pursuant to subsection (1) of this section.

(3) Such subscription, investment, possession, or ownership shall not be subject to sections 8-148, 8-149, and 8-150.

(4) For purposes of this section, community development investments means investments of a predominantly civic, community, or public nature and not merely private and entrepreneurial.

Laws 1993, LB 81, § 6

Laws 1994, LB 979, § 4

Laws 1996, LB 1184, § 1

Laws 2006, LB 876, § 9.