State Codes and Statutes

Statutes > California > Fin > 7250-7252

FINANCIAL CODE
SECTION 7250-7252



7250.  Notwithstanding any other provision of law, an association
may invest in the following securities without limit, and in addition
may invest not in excess of 5 percent of its assets in other
securities that are deemed prudent by the association:
   (a) Bonds or other interest bearing notes and obligations of the
United States and those for which the faith and credit of the United
States are pledged for the payment of principal and interest, or
obligations that are fully guaranteed as to principal and interest
by, the United States, any state, or any state's political
subdivisions, including its agencies, corporations and
instrumentalities.
   (b) Stock, bonds or obligations of any federal home loan bank.
   (c) Stock or obligations of any international home loan bank or
similar agency incorporated by authority of an act of Congress.
   (d) Stock, obligations, participations, or other instruments of or
issued by, or fully guaranteed as to principal and interest by, the
Federal National Mortgage Association, the Student Loan Marketing
Association, Government National Mortgage Association, Federal Home
Loan Mortgage Corporation, or any other agency of the United States
and an association may issue and sell securities that are guaranteed
under paragraph (g) of Section 306 of the National Housing Act (12
U.S.C. Sec. 1701 et seq.).
   (e) Bonds, other evidences of indebtedness or obligations of, or
guaranteed as to principal and interest by, the Dominion of Canada or
any of its provinces, provided that the principal and interest of
the obligations are payable in United States funds.
   (f) Obligations issued or guaranteed by the International Bank for
Reconstruction and Development, by the Inter-American Development
Bank, or by the Asian Development Bank.
   (g) Demand, time or savings deposits, shares or accounts, or other
obligations of any financial institution the accounts of which are
insured by a federal agency.
   (h) Commercial paper and corporate debt securities. Investments
under this subdivision in the paper or securities of any one obligor
or maker shall not exceed the greater of (1) the amount a national
bank having identical total capital and surplus could so invest in
the paper or securities of any one obligor or maker, or (2) the
amount a commercial bank, as defined in Section 105, having an
identical shareholders' equity could so invest in the paper or
securities of any one obligor or maker.
   (i) Shares or certificates in any open-end management investment
company that is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940 and the portfolio
of which is restricted by the management company's investment
policy, changeable only if authorized by shareholder vote, primarily
to investments authorized under this section.
   (j) Bankers' acceptances of the kind, character, and maturity
eligible for rediscount with a Federal Reserve bank, and such other
bonds and securities as authorized by Article 2.5 (commencing with
Section 7260) or as the commissioner may authorize by rules and
regulations.


7250.5.  No savings association may directly or indirectly acquire
or retain any corporate debt security unless the corporate debt
security is rated in one of the four highest rating categories by at
least one nationally recognized rating service.




7251.  An association holding investments which have been approved
by the commissioner shall not be required to dispose of them or to
establish a reserve account if later the commissioner rescinds
approval of the investments.


7252.  (a) Notwithstanding any other provisions of this chapter, an
association may, subject to regulations of the commissioner, invest
in the capital stock, obligations, or other securities of service
corporations.
   (b) The total of all investments under this section shall not
exceed 10 percent of the total assets of the savings association.
   (c) A service corporation in which a savings association may
invest shall only engage in those activities reasonably related to
the activities of savings associations as the commissioner may
approve.
   (d) An association may make an investment under this section
notwithstanding that the service corporation in which investment is
authorized has invested in any other corporation (1) that is not
incorporated in this state, or (2) that has stock available for
purchase by persons other than associations.


State Codes and Statutes

Statutes > California > Fin > 7250-7252

FINANCIAL CODE
SECTION 7250-7252



7250.  Notwithstanding any other provision of law, an association
may invest in the following securities without limit, and in addition
may invest not in excess of 5 percent of its assets in other
securities that are deemed prudent by the association:
   (a) Bonds or other interest bearing notes and obligations of the
United States and those for which the faith and credit of the United
States are pledged for the payment of principal and interest, or
obligations that are fully guaranteed as to principal and interest
by, the United States, any state, or any state's political
subdivisions, including its agencies, corporations and
instrumentalities.
   (b) Stock, bonds or obligations of any federal home loan bank.
   (c) Stock or obligations of any international home loan bank or
similar agency incorporated by authority of an act of Congress.
   (d) Stock, obligations, participations, or other instruments of or
issued by, or fully guaranteed as to principal and interest by, the
Federal National Mortgage Association, the Student Loan Marketing
Association, Government National Mortgage Association, Federal Home
Loan Mortgage Corporation, or any other agency of the United States
and an association may issue and sell securities that are guaranteed
under paragraph (g) of Section 306 of the National Housing Act (12
U.S.C. Sec. 1701 et seq.).
   (e) Bonds, other evidences of indebtedness or obligations of, or
guaranteed as to principal and interest by, the Dominion of Canada or
any of its provinces, provided that the principal and interest of
the obligations are payable in United States funds.
   (f) Obligations issued or guaranteed by the International Bank for
Reconstruction and Development, by the Inter-American Development
Bank, or by the Asian Development Bank.
   (g) Demand, time or savings deposits, shares or accounts, or other
obligations of any financial institution the accounts of which are
insured by a federal agency.
   (h) Commercial paper and corporate debt securities. Investments
under this subdivision in the paper or securities of any one obligor
or maker shall not exceed the greater of (1) the amount a national
bank having identical total capital and surplus could so invest in
the paper or securities of any one obligor or maker, or (2) the
amount a commercial bank, as defined in Section 105, having an
identical shareholders' equity could so invest in the paper or
securities of any one obligor or maker.
   (i) Shares or certificates in any open-end management investment
company that is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940 and the portfolio
of which is restricted by the management company's investment
policy, changeable only if authorized by shareholder vote, primarily
to investments authorized under this section.
   (j) Bankers' acceptances of the kind, character, and maturity
eligible for rediscount with a Federal Reserve bank, and such other
bonds and securities as authorized by Article 2.5 (commencing with
Section 7260) or as the commissioner may authorize by rules and
regulations.


7250.5.  No savings association may directly or indirectly acquire
or retain any corporate debt security unless the corporate debt
security is rated in one of the four highest rating categories by at
least one nationally recognized rating service.




7251.  An association holding investments which have been approved
by the commissioner shall not be required to dispose of them or to
establish a reserve account if later the commissioner rescinds
approval of the investments.


7252.  (a) Notwithstanding any other provisions of this chapter, an
association may, subject to regulations of the commissioner, invest
in the capital stock, obligations, or other securities of service
corporations.
   (b) The total of all investments under this section shall not
exceed 10 percent of the total assets of the savings association.
   (c) A service corporation in which a savings association may
invest shall only engage in those activities reasonably related to
the activities of savings associations as the commissioner may
approve.
   (d) An association may make an investment under this section
notwithstanding that the service corporation in which investment is
authorized has invested in any other corporation (1) that is not
incorporated in this state, or (2) that has stock available for
purchase by persons other than associations.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Fin > 7250-7252

FINANCIAL CODE
SECTION 7250-7252



7250.  Notwithstanding any other provision of law, an association
may invest in the following securities without limit, and in addition
may invest not in excess of 5 percent of its assets in other
securities that are deemed prudent by the association:
   (a) Bonds or other interest bearing notes and obligations of the
United States and those for which the faith and credit of the United
States are pledged for the payment of principal and interest, or
obligations that are fully guaranteed as to principal and interest
by, the United States, any state, or any state's political
subdivisions, including its agencies, corporations and
instrumentalities.
   (b) Stock, bonds or obligations of any federal home loan bank.
   (c) Stock or obligations of any international home loan bank or
similar agency incorporated by authority of an act of Congress.
   (d) Stock, obligations, participations, or other instruments of or
issued by, or fully guaranteed as to principal and interest by, the
Federal National Mortgage Association, the Student Loan Marketing
Association, Government National Mortgage Association, Federal Home
Loan Mortgage Corporation, or any other agency of the United States
and an association may issue and sell securities that are guaranteed
under paragraph (g) of Section 306 of the National Housing Act (12
U.S.C. Sec. 1701 et seq.).
   (e) Bonds, other evidences of indebtedness or obligations of, or
guaranteed as to principal and interest by, the Dominion of Canada or
any of its provinces, provided that the principal and interest of
the obligations are payable in United States funds.
   (f) Obligations issued or guaranteed by the International Bank for
Reconstruction and Development, by the Inter-American Development
Bank, or by the Asian Development Bank.
   (g) Demand, time or savings deposits, shares or accounts, or other
obligations of any financial institution the accounts of which are
insured by a federal agency.
   (h) Commercial paper and corporate debt securities. Investments
under this subdivision in the paper or securities of any one obligor
or maker shall not exceed the greater of (1) the amount a national
bank having identical total capital and surplus could so invest in
the paper or securities of any one obligor or maker, or (2) the
amount a commercial bank, as defined in Section 105, having an
identical shareholders' equity could so invest in the paper or
securities of any one obligor or maker.
   (i) Shares or certificates in any open-end management investment
company that is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940 and the portfolio
of which is restricted by the management company's investment
policy, changeable only if authorized by shareholder vote, primarily
to investments authorized under this section.
   (j) Bankers' acceptances of the kind, character, and maturity
eligible for rediscount with a Federal Reserve bank, and such other
bonds and securities as authorized by Article 2.5 (commencing with
Section 7260) or as the commissioner may authorize by rules and
regulations.


7250.5.  No savings association may directly or indirectly acquire
or retain any corporate debt security unless the corporate debt
security is rated in one of the four highest rating categories by at
least one nationally recognized rating service.




7251.  An association holding investments which have been approved
by the commissioner shall not be required to dispose of them or to
establish a reserve account if later the commissioner rescinds
approval of the investments.


7252.  (a) Notwithstanding any other provisions of this chapter, an
association may, subject to regulations of the commissioner, invest
in the capital stock, obligations, or other securities of service
corporations.
   (b) The total of all investments under this section shall not
exceed 10 percent of the total assets of the savings association.
   (c) A service corporation in which a savings association may
invest shall only engage in those activities reasonably related to
the activities of savings associations as the commissioner may
approve.
   (d) An association may make an investment under this section
notwithstanding that the service corporation in which investment is
authorized has invested in any other corporation (1) that is not
incorporated in this state, or (2) that has stock available for
purchase by persons other than associations.


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