Sec. 6.5. (a) A corporate fiduciary may not purchase for its own account any bond, note, or other evidence of indebtedness that is commonly designated as a security that is speculative in character or that has speculative characteristics. For the purposes of this subsection, a security is speculative or has speculative characteristics if at the time of purchase the security:
(1) is rated below the first four (4) rating classes by a generally recognized security rating service;
(2) is in default; or
(3) is otherwise considered speculative by the director.
(b) A corporate fiduciary may purchase for its own account a security that is not rated by a generally recognized security rating service if:
(1) the corporate fiduciary at the time of purchase obtains financial information that is adequate to document the investment quality of the security; and
(2) the security is not otherwise considered speculative by the director.
As added by P.L.176-1996, SEC.32. Amended by P.L.89-2011, SEC.72.
Structure Indiana Code
Title 28. Financial Institutions
Article 14. Corporate Fiduciaries
Chapter 5. Investments of Corporate Fiduciaries
28-14-5-1. "Total Equity Capital"
28-14-5-2. Limitations on Dealing in Investment Securities
28-14-5-3. Underwriting or Guarantee of Issue of Securities
28-14-5-4. Purchase for Own Account and Sale of Investment Securities
28-14-5-6. Deposit of Funds by Corporate Fiduciaries
28-14-5-7. Prohibition on Purchases of Stock of Nonsubsidiaries
28-14-5-8. Investment in Casualty Insurance Company