Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 60 - SAVINGS ASSOCIATIONS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 1 - AUTHORIZED LOANS AND INVESTMENTS › Section 60.308 - Investment in Securities

Current through Reg. 49, No. 28; July 12, 2024
(a) A savings
					 association is deemed to have power to invest in obligations of, or guaranteed
					 as to principal and interest by, the United States or this state; in stock of a
					 federal home loan bank of which it is eligible to be a member, and in any
					 obligations or consolidated obligations of any federal home loan bank or banks;
					 in stock or obligations of the FDIC; in stock or obligations of a national
					 mortgage association created by federal law or any successor or successors
					 thereto; in demand, time, or savings deposits with any bank or trust company
					 the deposits of which are insured by the FDIC; in stock or obligations of any
					 corporation or agency of the United States or this state, or in deposits
					 therewith to the extent that such corporation or agency assists in furthering
					 or facilitating the savings association's purposes or power; in demand, time,
					 or savings deposits of any financial institution the deposits of which are
					 insured by the FDIC; in bonds, notes, or other evidences of indebtedness which
					 are a general obligation of any city, town, village, county, school district,
					 or other municipal corporation or political subdivision of this state; and in
					 such other securities or obligations approved by the Commissioner.
(b) A savings association investing in
					 securities under this section must ensure that the securities are delivered to
					 the savings association, or for the savings association's account to a
					 custodial agent or trustee designated by the savings association, on or before
					 3 business days after the date the savings association pays for or becomes
					 obligated to pay for the securities. The savings association may employ as
					 custodial agent or trustee a federal home loan bank, a federal reserve bank, a
					 bank the accounts of which are insured by the FDIC, any financial institution
					 legally exercising trust powers and the accounts of which are insured by the
					 Federal Deposit Insurance Corporation, or such other trust company approved in
					 advance by the Commissioner. When employing any of the foregoing entities as
					 trustee or custodial agent to accept delivery of the securities, the savings
					 association must ensure that it receives a custodial or trust receipt for the
					 securities on or before 3 business days after the date the securities are
					 delivered.
(c) No savings
					 association or subsidiary thereof may invest, either directly or indirectly, in
					 the stocks, bonds, notes, or other securities of any affiliated person without
					 the prior written approval of the Commissioner.
(d) No savings association or subsidiary
					 thereof may, either directly or indirectly, purchase securities from any
					 affiliated person of such savings association.
(e) Investments in equity securities.
(1) A savings association or any service
					 corporation, operating subsidiary, or finance subsidiary of a savings
					 association may not invest in stock or equity securities unless the securities
					 qualify as investment grade securities. Additionally, no savings association
					 may invest in stock or equity securities unless the securities are eligible
					 investments for federal associations.
(2) The limitations of paragraph (1) of this
					 subsection do not apply to equity securities:
(A) issued by any United States
					 government-sponsored corporation including the Federal National Mortgage
					 Association, the Federal Home Loan Mortgage Corporation, and the Student Loan
					 Marketing Association; or
(B)
					 issued by a service corporation, an operating subsidiary, or a finance
					 subsidiary of the savings association.