Mississippi Code
Article 7 - Loans and Investments
§ 81-14-303. Other investments

If the board of directors determines at any time that funds are available in excess of the demands and needs for loans, maturities and withdrawals, a savings bank may invest funds as provided in this section:
In demand, time or savings deposits or accounts, withdrawable accounts, or other insured obligations of any financial institution, the accounts of which are insured by a federal agency.
In obligations of, or obligations that are fully guaranteed by the United States, and in stocks or obligations of any Federal Reserve Bank, Federal Home Loan Bank, the Student Loan Market Association, the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Deposit Insurance Corporation, or any other agency of the United States.
In bonds or other direct obligations of, or guaranteed as to principal and interest by, this state.
In bonds or other evidences of indebtedness that are direct general obligations of any unit of local government of this state, or other evidences of indebtedness that are payable from revenues or earnings specifically pledged therefor of a unit of local government, but in no event shall the total amount of the securities of any one (1) maker or obligor exceed fifteen percent (15%) of the savings bank's total capital, nor shall the aggregate amount of investments under this paragraph exceed fifteen percent (15%) of the savings bank's total assets.
In real estate for the following purposes:
A savings bank may invest in real property and equipment and in leasehold improvements to rented facilities necessary for the conduct of its business and in real property to be held for its future use. A savings bank may invest in an office building or buildings and appurtenances for the purpose of the transaction of the savings bank's business. No such investment may be made without the prior written approval of the commissioner if the total amount of such investments exceeds fifty percent (50%) of the savings bank's net worth. Facilities, furniture and fixtures leased for the purpose set forth in this section shall not be included in this limitation.
With the prior written consent of the commissioner, a savings bank may invest in the initial purchase and development, or the purchase or commitment to purchase after completion, of home sites and housing for sale or rent, including, but not limited to: (A) projects for the reconstruction, rehabilitation or rebuilding of residential properties to meet the minimum standards of health and occupancy prescribed by appropriate local authorities; (B) the provision of accommodations for retail stores and other community services that are reasonably incident to such housing; or (C) in the shares of a corporation that owns one or more of those projects and that is wholly owned by one or more financial institutions whose investments are regulated by the laws of this state or of the United States. In no event shall the total investment in any one (1) project exceed fifteen percent (15%) of the savings bank's net worth, nor shall the aggregate investment under this paragraph exceed fifty percent (50%) of its net worth.
No savings bank may make an investment unless it is in compliance with the net worth requirements of this chapter and with the net worth maintenance requirements of its insurer of deposit accounts. The commissioner shall approve the investment only if the savings bank shows:
That the savings bank has adequate assets available for the investment;
That the proposed investment does not exceed the reasonable market value of the property or interest therein as determined in accordance with the appraisal requirements of this chapter; and
That all other requirements of this section have been met.
Nothing contained in this paragraph prohibits a savings bank from developing or building on land acquired by it under any other provision of this chapter nor from completing the construction of buildings in accordance with any construction loan contract where the borrower has failed to comply with the terms of the contract.
In stocks or obligations of business development corporations chartered by this state or by the United States or an agency thereof, but in no event shall the aggregate amount of stock exceed two and one-half percent (2-1/2%) of the savings bank's total capital or Two Hundred Fifty Thousand Dollars ($250,000.00), whichever is greater.
In obligations of urban renewal investment corporations chartered under the laws of this state, or the United States, or in certificates of beneficial interest of urban renewal investment trusts, but in no event shall the aggregate amount of the stock, obligations or beneficial interest certificates of any one (1) maker exceed two and one-half percent (2-1/2%) of the savings bank's total capital, nor shall the aggregate amount of investments under this paragraph exceed fifteen percent (15%) of its total capital.
In commercial paper. As used in this section, the term "commercial paper" means short-term obligations having a maturity ranging from two (2) to two hundred seventy (270) days issued by banks, corporations or other borrowers. Investments in commercial paper under this section must be in securities rated in one (1) of the two (2) highest categories by at least two (2) nationally recognized investment rating services.
Purchase of stock in insurance companies. Notwithstanding any provision of this chapter to the contrary, a savings bank may purchase shares of, or otherwise acquire equity interest in, insurance companies and insurance holding companies organized to provide insurance for savings institutions and corporations and individuals affiliated with savings institutions; provided, however, that ownership of equity interest is a prerequisite to obtaining director's, officer's and blanket bond insurance through the company or companies. The commissioner may promulgate regulations concerning the size of each savings bank's investment and manner of holding those investments.
Subject to the regulation of the commissioner, in equity or debt securities or instruments of a service corporation that is a subsidiary of the savings bank.
Through advances of federal funds to designated depositories, provided that the advances are made on the condition that they be repaid on the next business day following the date on which the advance is made. For the purpose of this paragraph, the term "federal funds" means funds that a savings bank has on deposit at a depository that are exchangeable for funds on deposit at a federal reserve bank; the term "business day" means any day on which the savings bank, the depository and the federal reserve bank where the funds are on deposit are all open for general business.
In marketable investment securities, but in no event shall the total amount of those securities of any one (1) maker or obligor exceed five percent (5%) of the savings bank's total capital, nor shall the aggregate amount of investments under this section exceed fifteen percent (15%) of total capital. As used in this section, the term "marketable investment securities" does not include stock, but means investment grade marketable obligations evidencing indebtedness of any person in the form of bonds, notes or debentures commonly known as investment securities, and of a type customarily sold on recognized exchanges or traded over the counter. As used in this section, the term "investment grade" means being rated in one (1) of the two (2) highest categories by at least two (2) nationally recognized investment rating services. As used in this section, the term "person" means an individual corporation, partnership, joint venture, trust, estate or unincorporated association.