§412:8-301  Permitted investments ofcapital and surplus.  (a)  To the extent specified herein, a trust companymay invest its own assets in:

(1)  Securities and obligations of the United Statesgovernment and any agency of the United States government whose debtobligations are fully and explicitly guaranteed as to the timely payment ofprincipal and interest by the full faith and credit of the United States,including without limitation Federal Reserve Banks, the Government NationalMortgage Association, the Veterans Administration, the Federal HousingAdministration, the United States Department of Agriculture, the Export-ImportBank, the Overseas Private Investment Corporation, the Commodity CreditCorporation, and the Small Business Administration;

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

(3)  Securities and obligations of United Statesgovernment-sponsored agencies which are originally established or chartered bythe United States government to serve public purposes specified by the Congressbut whose debt obligations are not explicitly guaranteed by the full faith andcredit of the United States, including without limitation Banks forCooperatives, Federal Agricultural Mortgage Corporation, Federal Farm CreditBanks, Federal Intermediate Credit Banks, Federal Land Banks, FinancingCorporation, Resolution Funding Corporation, Student Loan Marketing Association,Tennessee Valley Authority, the United States Postal Service, and securitiesand obligations of the Federal Home Loan Mortgage Corporation, the FederalNational Mortgage Association, and the Federal Home Loan Banks that are notbonds, notes, mortgage backed securities, or other debt obligations of theFederal Home Loan Mortgage Corporation, the Federal National MortgageAssociation, and the Federal Home Loan Banks; provided that the total amountinvested in obligations of any one issuer shall not exceed twenty per cent ofthe trust company's capital and surplus; and

(4)  Securities and obligations of quasi-United Statesgovernmental institutions, including without limitation the International Bankfor Reconstruction and Development (World Bank), the Inter-American DevelopmentBank, the Asian Development Bank, the African Development Bank, the EuropeanInvestment Bank, and other multilateral lending institutions or regionaldevelopment institutions in which the United States government is a shareholderor contributing member; provided that the total amount invested in obligationsof any one issuer shall not exceed twenty per cent of the trust company'scapital and surplus.

(b)  A trust company may invest its own assetsin bonds, securities, or similar obligations issued by this State or any countyof this State, through an appropriate agency or instrumentality.

(c)  To the extent specified herein, a trustcompany may invest its own assets in bonds or similar obligations issued by anystate of the United States other than this State, the District of Columbia, orany territory or possession of the United States, by municipal governments ofsuch states, territories or possessions or by any foreign country or politicalsubdivision of such country; provided, that:

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

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

(3)  The total amount invested in such obligations ofany one issuer by a trust company shall not exceed twenty per cent of the trustcompany's capital and surplus.

(d)  To the extent specified herein, a trustcompany may invest its own assets in capital stock, notes, bonds, and otherobligations of any corporation which at the time of the investment isincorporated under the laws of the United States or any state or territory thereofor the District of Columbia; provided, that the aggregate amount invested by atrust company under this subsection and subsection (e) in any one corporationshall not exceed twenty per cent of the trust company's capital and surplus.

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

(f)  To the extent specified herein, a trustcompany may purchase, hold, convey, sell or lease real or personal property asfollows:

(1)  The real property in or on which the business ofthe trust company is carried on, including its corporate offices, other spacein the same property to rent as a source of income; permanent or vacationresidences or recreational facilities for its officers and employees; otherreal property necessary to the accommodation of the trust company's business,including but not limited to parking facilities, data processing centers, andreal property held for future corporate use where the trust company in goodfaith expects to utilize the property as trust company premises; provided, ifthe trust company ceases to use any real property and improvements thereon forone of the foregoing purposes, it shall, within five years thereafter, sell thereal property or cease to carry it or them as an asset; provided further, suchproperty shall not without the approval of the commissioner exceed seventy-fiveper cent of the trust company's capital and surplus;

(2)  Personal property used in or necessary to theaccommodation of the trust company's business, including but not limited tofurniture, fixtures, equipment, vaults and safety deposit boxes.  The trustcompany's investment in furniture and fixtures shall not without the approvalof the commissioner exceed twenty-five per cent of the trust company's capitaland surplus.

Any trust company acquiring any real propertyin any manner other than provided in this section shall immediately, upon receivingnotice from the commissioner, charge the same to profit and loss, or otherwiseremove the same from assets, and when any loss impairs the capital and surplusof the trust company the impairment shall be made good in the manner providedin this chapter. [L 1993, c 350, pt of §1; am L 1997, c 258, §17; am L 2001, c170, §10; am L 2009, c 107, §5]