§412:8-301  Permitted investments of
capital and surplus.  (a)  To the extent specified herein, a trust company
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 trust company'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 trust company's
capital and surplus.



(b)  A trust company 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 trust
company 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 trust company shall not exceed twenty per cent of the trust
company's capital and surplus.



(d)  To the extent specified herein, a trust
company may invest its own assets in capital stock, 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
trust company under this subsection and subsection (e) in any one corporation
shall not exceed twenty per cent of the trust company's capital and surplus.



(e)  To the extent specified herein, a trust
company 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 trust company 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
trust company under this subsection and subsection (d) in any one company or
other issuer shall not exceed twenty per cent of the trust company's capital
and surplus.



(f)  To the extent specified herein, a trust
company 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 trust company is carried on, including its corporate 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 trust company's business,
including but not limited to parking facilities, data processing centers, and
real property held for future corporate use where the trust company in good
faith expects to utilize the property as trust company premises; provided, if
the trust company 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 trust company's capital and surplus;



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



Any trust company acquiring any real property
in any manner other than provided in 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 trust company the impairment shall be made good in the manner provided
in this chapter. [L 1993, c 350, pt of §1; am L 1997, c 258, §17; am L 2001, c
170, §10; am L 2009, c 107, §5]