§412:9-408  General requirement for
investments.  (a)  A depository financial services loan company shall make
investments that are consistent with prudent banking practices and in
compliance with all applicable federal and state law.



(b)  The board of directors of a depository
financial services loan company and any other person charged with the
responsibility of investing the depository financial services loan company's
assets shall exercise such reasonable diligence, discretion, judgment, and
intelligence as would be expected of a prudent investor.  Among other things,
they shall not engage in speculative or unsound investments, and they shall at
all times consider the probable safety as well as the probable income of the
capital being invested.



(c)  The board of directors shall establish
written investment policies. [L 1993, c 350, pt of §1]