§412:7-306  Permitted investments.  (a) 
To the extent specified herein, a savings and loan association may invest its
own assets in:



(1)  Securities and obligations of the United States
government and any agency of the United States government whose debt
obligations are fully and explicitly guaranteed as to the timely payment of
principal and interest by the full faith and credit of the United States,
including without limitation Federal Reserve Banks, the Government National
Mortgage Association, the Veterans Administration, the Federal Housing
Administration, the United States Department of Agriculture, the Export-Import
Bank, the Overseas Private Investment Corporation, the Commodity Credit
Corporation, and the Small Business Administration;



(2)  Bonds, notes, mortgage backed securities, and
other debt obligations of the Federal Home Loan Mortgage Corporation, the
Federal National Mortgage Association, and the Federal Home Loan Banks;



(3)  Securities and obligations of United States
government-sponsored agencies which are originally established or chartered by
the United States government to serve public purposes specified by the Congress
but whose debt obligations are not explicitly guaranteed by the full faith and
credit of the United States, including without limitation Banks for
Cooperatives, Federal Agricultural Mortgage Corporation, Federal Farm Credit
Banks, Federal Intermediate Credit Banks, Federal Land Banks, Financing
Corporation, Resolution Funding Corporation, Student Loan Marketing Association,
Tennessee Valley Authority, the United States Postal Service, and securities
and obligations of the Federal Home Loan Mortgage Corporation, the Federal
National Mortgage Association, and the Federal Home Loan Banks that are not
bonds, notes, mortgage backed securities, or other debt obligations of the
Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association, and the Federal Home Loan Banks; provided that the total amount
invested in obligations of any one issuer shall not exceed twenty per cent of
the savings and loan association's capital and surplus; and



(4)  Securities and obligations of quasi-United States
governmental institutions, including without limitation the International Bank
for Reconstruction and Development (World Bank), the Inter-American Development
Bank, the Asian Development Bank, the African Development Bank, the European
Investment Bank, and other multilateral lending institutions or regional
development institutions in which the United States government is a shareholder
or contributing member; provided that the total amount invested in obligations
of any one issuer shall not exceed twenty per cent of the savings and loan
association's capital and surplus.



(b)  A savings and loan association may invest
its own assets in bonds, securities, or similar obligations issued by this
State or any county of this State, through an appropriate agency or
instrumentality.



(c)  To the extent specified herein, a savings
and loan association may invest its own assets in bonds or similar obligations
issued by any state of the United States other than this State, the District of
Columbia, or any territory or possession of the United States, by municipal
governments of such states, territories or possessions or by any foreign country
or political subdivision of such country; provided, that:



(1)  The bond, note, or warrant has been issued in
compliance with the constitution and laws of any such government;



(2)  There has been no default in payment of either
principal or interest on any of the general obligations of such government for
a period of five years immediately preceding the date of the investment; and



(3)  The total amount invested in such obligations of
any one issuer by a savings and loan association shall not exceed twenty per
cent of the savings and loan association's capital and surplus.



(d)  To the extent specified herein, a savings
and loan association may invest its own assets in notes, bonds, and other
obligations of any corporation which at the time of the investment is
incorporated under the laws of the United States or any state or territory
thereof or the District of Columbia; provided, that the aggregate amount
invested by a savings and loan association under this subsection and subsection
(e) in any one corporation shall not exceed twenty per cent of the savings and
loan association's capital and surplus.



(e)  To the extent specified herein, a savings
and loan association may invest its own assets in securities of an investment
grade.  The term "investment grade" means notes, bonds, certificates
of interest or participation, beneficial interests, mortgage or
receivable-related securities, and other obligations that are commonly
understood to be of investment grade quality, including without limitation those
securities that are rated within the four highest grades by any
nationally-recognized rating service or unrated securities of similar quality
as reasonably determined by the savings and loan association in its prudent
judgment, which may be based in part upon estimates which it believes to be
reliable.  Investment grade does not include investments which are
predominantly speculative in nature.  The aggregate amount invested by a
savings and loan association under this subsection and subsection (d) in any
one company or other issuer shall not exceed twenty per cent of the savings and
loan association's capital and surplus.



(f)  To the extent specified herein, a savings
and loan association may purchase, hold, convey, sell or lease real or personal
property as follows:



(1)  The real property in or on which the business of
the savings and loan association is carried on, including its offices, other
space in the same property to rent as a source of income; permanent or vacation
residences or recreational facilities for its officers and employees; other
real property necessary to the accommodation of the savings and loan
association's business, including but not limited to parking facilities, data
processing centers, and real property held for future use where the savings and
loan association in good faith expects to utilize the property as its premises;
provided, if the savings and loan association ceases to use any real property
and improvements thereon for one of the foregoing purposes, it shall, within
five years thereafter, sell the real property or cease to carry it or them as
an asset; provided further, such property shall not, without the approval of
the commissioner, exceed seventy-five per cent of the savings and loan
association's capital and surplus;



(2)  Personal property used in or necessary to the
accommodation of the savings and loan association's business, including but not
limited to furniture, fixtures, equipment, vaults and safety deposit boxes. 
The savings and loan association's investment in furniture and fixtures shall
not, without the approval of the commissioner, exceed twenty-five per cent of
the savings and loan association's capital and surplus;



(3)  Personal and real property which the savings and
loan association acquires for the purpose of leasing to its subsidiaries and
affiliates;



(4)  Such real property or tangible personal property
as may come into its possession as security for loans or in the collection of
debts, or as may be purchased by or conveyed to the savings and loan association
in satisfaction of or on account of debts previously contracted in the course
of its business when such property was held as security by the savings and loan
association; and



(5)  The seller's interest under an agreement of sale,
as that term is defined in sections 501-101.5 and 502-85, including without
limitation the reversionary interest in the real estate and the right to income
under the agreement of sale, with or without recourse to the seller.



Except as otherwise authorized in this section
any tangible personal property acquired by a savings and loan association
pursuant to subsection (f)(4) shall be disposed of as soon as practicable and
shall not, without the written consent of the commissioner, be considered a
part of the assets of the savings and loan association after the expiration of
two years from the date of acquisition.



Except as otherwise authorized in this section
any real property acquired by a savings and loan association pursuant to
subsection (f)(4) shall be sold or exchanged for other real property by the
savings and loan association within five years after title thereto has vested
in it by purchase or otherwise, or within such further time as may be granted
by the commissioner.



Any savings and loan association acquiring any
real property in any manner other than provided by this section shall
immediately, upon receiving notice from the commissioner, charge the same to
profit and loss, or otherwise remove the same from assets, and when any loss
impairs the capital and surplus of the savings and loan association the
impairment shall be made good in the manner provided in this chapter.



(g)  A savings and loan association may own or
control the capital stock:



(1)  Of operating subsidiaries as set forth in this
article;



(2)  Of a corporation organized and existing for the
ownership of real or personal property used or which the savings and loan
association in good faith expects to be used in the savings and loan
association's business;



(3)  Of the Federal National Mortgage Association, the
Student Loan Marketing Association, Federal Home Loan Mortgage Corporation or
of any other corporation organized for substantially the same purposes;
provided that this subsection shall be deemed to authorize subscription for as
well as purchase of the stock;



(4)  Of small business investment companies operating
under the Federal Small Business Investment Act of 1958;



(5)  Of service corporations as set forth in this
article;



(6)  Of a corporation whose stock is acquired or
purchased to save a loss on a preexisting debt secured by such stock; provided,
that the stock shall be sold within twelve months of the date acquired or
purchased, or within such further time as may be granted by the commissioner;
and



(7)  Of a captive insurance or association captive
insurance company incorporated under the laws of the United States, or any
state or territory thereof or the District of Columbia.



(h)  To the extent specified herein, a savings
and loan association may invest its own assets in limited partnerships, limited liability partnerships, limited
liability companies, or corporations formed to invest in residential
properties that will qualify for the low income housing tax credit under
section 42 of the Internal Revenue Code of 1986, as amended, and under chapters
235 and 241; provided that the total amount invested by a savings and loan
association under this subsection in any one limited partnership, limited liability partnership, limited
liability company, or corporation shall not, without the prior approval
of the commissioner, exceed two per cent of the savings and loan association's
capital and surplus and the aggregate amount invested under this subsection
shall not, without the prior approval of the commissioner, exceed five per cent
of the savings and loan association's capital and surplus.  In no case shall
the aggregate amount invested by a savings and loan association under this
subsection exceed ten per cent of the savings and loan association's capital
and surplus. [L 1993, c 350, pt of §1; am L 1995, c 48, §3; am L 1997, c 258,
§16; am L 1998, c 11, §20; am L 2001, c 170, §9; am L 2006, c 228, §40; am L
2009, c 107, §4]