Junk Bond Limitation Act of 1985

Junk Bond Limitation Act of 1985 - Amends the Federal Deposit Insurance Act to prohibit an insured bank with a net worth of less than six percent from investing in noninvestment grade securities if the investment would be prohibited for a national bank.

Amends the National Housing Act to prohibit an insured institution with a net worth of less than six percent from investing in noninvestment grade securities if such investment would be prohibited for a Federal savings and loan association.

Amends the Securities Exchange Act of 1934 to apply margin requirements to noninvestment grade securities. Declares that it shall be unlawful to extend or obtain credit to purchase or carry margin securities in the context of a tender offer, or a request or invitation for tender, other than in compliance with Federal Reserve System rules. Provides for the civil enforcement of such provisions by the Securities and Exchange Commission or an aggrieved individual.