§412:5-305 Permitted investments. (a) To the extent specified in this subsection, a bank may invest its own assets in:
(b) A bank may invest its own assets in bonds, securities, or similar obligations issued by this State or any county of this State, through an appropriate agency or instrumentality.
(c) To the extent specified in this subsection, a bank may invest its own assets in bonds or similar obligations issued by any state of the United States other than this State, the District of Columbia, or any territory or possession of the United States, by municipal governments of such states, territories or possessions or by any foreign country or political subdivision of such country; provided that:
(d) To the extent specified in this subsection, a bank may invest its own assets in notes, bonds, and other obligations of any corporation that at the time of the investment is incorporated under the laws of the United States or any state or territory thereof or the District of Columbia; provided that the aggregate amount invested by a bank under this subsection and subsection (e) in any one corporation shall not exceed twenty per cent of the bank's capital and surplus.
(e) To the extent specified in this subsection, a bank may invest its own assets in securities of an investment grade. "Investment grade" means notes, bonds, certificates of interest or participation, beneficial interests, mortgage or receivable-related securities, and other obligations that are commonly understood to be of investment grade quality, including without limitation those securities that are rated within the four highest grades by any nationally-recognized rating service or unrated securities of similar quality as reasonably determined by the bank in its prudent banking judgment, which may be based in part upon estimates that it believes to be reliable. "Investment grade" does not include investments that are predominantly speculative in nature. The aggregate amount invested by a bank under this subsection and subsection (d) in any one company or other issuer shall not exceed twenty per cent of the bank's capital and surplus.
(f) To the extent specified in this subsection, a bank may purchase, hold, convey, sell, or lease real or personal property as follows:
Except as otherwise authorized in this section, any tangible personal property acquired by a bank pursuant to subsection (f)(4) shall be disposed of as soon as practicable and shall not, without the written consent of the commissioner, be considered a part of the assets of the bank after the expiration of two years from the date of acquisition.
Except as otherwise authorized in this section, any real property acquired by a bank pursuant to subsection (f)(4) shall be sold or exchanged for other real property by the bank within five years after title thereto has vested in it by purchase or otherwise, or within a later time as may be granted by the commissioner.
Any bank acquiring any real property in any manner other than provided by this section shall immediately, upon receiving notice from the commissioner, charge the same to profit and loss, or otherwise remove the same from assets, and when any loss impairs the capital and surplus of the bank the impairment shall be made good in the manner provided in this chapter.
For purposes of this subsection, "tier one capital" has the same meaning as "tier 1 capital" as set forth in title 12 Code of Federal Regulations section 325.2(v).
(g) A bank may own or control:
(h) To the extent specified in this subsection, a bank may invest its own assets in limited partnerships, limited liability partnerships, limited liability companies, or corporations formed to invest in residential properties that will qualify for the low income housing tax credit under section 42 of the Internal Revenue Code of 1986, as amended, and under chapters 235 and 241; provided that the bank may invest in an aggregate amount of up to fifteen per cent of the bank's capital and surplus without the prior approval of the commissioner or any after-the-fact notice.
(i) An eligible bank may make an investment that exceeds fifteen per cent, but does not exceed twenty per cent, of the bank's capital and surplus without prior notification to, or approval by, the commissioner if the eligible bank submits an after-the-fact notice of the investment to the commissioner. The after-the-fact notice shall include:
(j) For the purposes of this section:
"Eligible bank" means a bank that:
"Well capitalized" has the same meaning as defined under title 12 Code of Federal Regulations section 6.4. [L 1993, c 350, pt of §1; am L 1995, c 48, §1; am L 1996, c 225, §3; am L 1997, c 258, §14; am L 2001, c 170, §7; am L 2006, c 228, §32; am L 2009, c 107, §2; am L 2013, c 172, §6; am L 2017, c 12, §1; am L 2023, c 96, §1]