Sec. 8.5. (a) A savings bank 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 savings bank may purchase for its own account a security that is not rated by a generally recognized security rating service if:
(1) the savings bank 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.20. Amended by P.L.89-2011, SEC.46.
Structure Indiana Code
Title 28. Financial Institutions
Chapter 10. Savings Banks Dealing in Investment Securities
28-6.1-10-1. Application of Limitations
28-6.1-10-2. Total Equity Capital
28-6.1-10-3. Dealing Requirements
28-6.1-10-4. Dealings for Bank's Own Account
28-6.1-10-5. Underwriting or Guaranteeing Issues of Securities
28-6.1-10-7. Purchase and Sale of Government Chartered Small Business Investment Company Stock
28-6.1-10-8. Purchase and Sale of Collateralized Mortgage Obligations
28-6.1-10-9. Purchase and Sale of Nonsubsidiary Corporation Stock
28-6.1-10-10. Purchase and Holding of Banker's Bank Stock
28-6.1-10-11. Investments in Casualty Insurance Companies
28-6.1-10-12. Establishment and Acquisition of Subsidiaries
28-6.1-10-13. Establishment of Trading Accounts