§ 19-3-8. Prudent person rule.
(a) In addition to investments set forth in this title, any financial institution may also, to the extent prescribed, invest in any securities that would be acquired by prudent persons of discretion and intelligence in these matters who are seeking a reasonable income and the preservation of their capital, as are set forth below:
(1) In corporate interest-bearing securities not eligible under the laws of this state for investment, subject to a maximum of three percent (3%) of the financial institution’s assets in any one obligation of any one obligor;
(2) In shares of common, preferred, or guaranteed stocks, including the various classifications of stocks, not eligible under the laws of this state for investment, subject to a maximum of one half of one percent (.5%) of the financial institution’s assets in any one corporation;
(3) In the shares of any open-end or closed-end management-type investment company or trust that is registered under the federal Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., subject to a maximum of one percent (1%) of the financial institution’s assets in any one company or trust.
(b) No financial institution shall invest more than ten percent (10%) of its assets in investments authorized in this section, unless otherwise expressly provided.
History of Section.
P.L. 1995, ch. 82, § 40.