Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 1 - AUTHORIZED LOANS AND INVESTMENTS › Section 75.308 - Investment in Securities

Current through Reg. 49, No. 28; July 12, 2024
(a) A savings bank
					 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 Federal Deposit Insurance Corporation;
					 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 bank'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
					 bank investing in securities under this section must insure that the securities
					 are delivered to the savings bank, or for the savings bank's account to a
					 custodial agent or trustee designated by the savings bank, within 3 business
					 days after paying for or becoming obligated to pay for the securities. The
					 savings bank 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 Federal
					 Deposit Insurance Corporation, any savings and loan association 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 bank must
					 insure that it receives a custodial or trust receipt for the securities within
					 3 business days of the delivery of the securities.
(c) No savings bank 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 bank
					 or subsidiary thereof may, either directly or indirectly, purchase securities
					 from any affiliated person of such savings bank.
(e) Investments in equity securities.
(1) A savings bank or any service
					 corporation, operating subsidiary, or finance subsidiary of a savings bank may
					 not invest in stock or equity securities unless the securities qualify as
					 investment grade securities. Additionally, no savings bank may invest in stock
					 or equity securities unless the securities are eligible investments for federal
					 savings banks.
(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 bank.