(1) In addition to other investments expressly
authorized by this article or the rules promulgated by the banking board, a trust
company may purchase:
(a) Obligations that satisfy the requirements of this article or the rules
promulgated by the banking board for loans for state banks;
(b) Obligations of, or fully guaranteed by, the United States, a state of the
United States, or the Dominion of Canada;
(c) Obligations of the international bank for reconstruction and
redevelopment;
(d) Farm loan bonds issued by any federal land bank organized pursuant to
an act of congress approved July 17, 1916, entitled: An Act to provide capital for
agricultural development, to create standard forms of investment based upon farm
mortgages, to furnish a market for United States bonds, to create government
depositories and financial agents for the United States, and for other purposes.
and known as the Federal Farm Loan Act, and acts amendatory thereto. Such
farm loan bonds shall be accepted as security for all public deposits and in all
cases where bonds are required by law to be deposited with any department or
public official of this state, but this section shall not be so construed as to prohibit
such moneys or deposits from being invested in such other securities provided for
by law.
(e) General obligations of a territory of the United States, a province of the
Dominion of Canada, or a political subdivision or instrumentality of a state or
territory of the United States;
(f) Obligations of a corporation chartered by the United States or a state
thereof doing business in the United States; or an authority organized under state
law, an interstate compact, or by substantially identical legislation adopted by two
or more states if any of the foregoing under this paragraph (f) are approved by the
banking board for investment;
(g) Revenue obligations issued to provide, enlarge, or improve electric
power, gas, water and sewer facilities by any city or town having a population of not
less than two thousand people at the time of the investment, located in any state in
the United States or territories thereof;
(h) Such other obligations as the general assembly has designated or may
from time to time designate as legal investments for public funds;
(i) The capital stock of other corporations, including the stock of a
corporation regulated under the federal Investment Company Act of 1940, as
amended, 15 U.S.C. section 80a-1 et seq., and the land or lands and building or
buildings in which the business of the trust company is carried on, including its trust
company offices, other property in the same building to rent as a source of income,
and fixtures, and furniture, safe deposit vaults and boxes, and other personal
property such as may be appropriate to carry on its business.
(2) A trust company may, to the extent that banks subject to the laws of the
federal government are permitted so to do and to the extent permitted by the rules
of the banking board, purchase shares of stock in small business investment
companies organized under Public Law No. 85-699, 85th Congress, known as the
Small Business Investment Act of 1958, as amended, but in no event shall any
trust company hold shares in small business investment companies in an amount
aggregating more than three percent of the trust company's capital and surplus.
(3) No limitation or prohibition otherwise imposed by any provision of state
law relating to trust companies shall prevent a trust company from investing not
more than ten percent of the trust company's capital as defined in the rules
promulgated by the banking board in a bank service corporation as defined in 12
U.S.C. 1861 to 1865, inclusive, and as amended, subject to the rights, powers, and
limitations contained therein, and such investment by trust companies is expressly
authorized to the extent permitted by the rules of the banking board.
(4) A trust company may acquire or retain an equity investment in a
subsidiary of which the trust company is the majority owner, so long as the
subsidiary is engaged in activities that are allowed pursuant to this article.
(5) Notwithstanding any restrictions upon investments in obligations,
powers, or activities contained in this article, a trust company may invest in any
obligation, exercise such powers, and engage in such activities that such trust
company could legally acquire, exercise, and engage in were it operating as a
national bank at the time such investment was made, such powers were exercised,
or such activities were engaged in, to the extent permitted by the rules
promulgated by the banking board.
(6) A trust company may invest an amount not exceeding ten percent of its
capital as defined in the rules promulgated by the banking board in the stock of any
bank or bank holding company that provides services solely to depository
institutions and their shareholders, directors, officers, and employees, wherein the
ownership of stock of the bank or bank holding company, except for any stock
required by law to be owned by directors of the bank or bank holding company, is
restricted to banks, trust companies, or bank holding companies. The amount of
stock owned by a trust company in any such bank or bank holding company shall
not be in excess of five percent of the voting shares of such bank or bank holding
company.
(7) (a) A trust company may directly engage in activities that are primarily
investments in real estate or may acquire and hold the voting stock of one or more
corporations the activities of which are primarily investments in real estate. Such
activities may include subdividing and developing real property and building
residential housing or commercial improvements on such property and may also
include owning, renting, leasing, managing, operating for income, or selling such
property. Such property shall be entered on the books at not more than cost or fair
market value, whichever is less. The total of all investments made by a trust
company pursuant to the authority of this subsection (7) shall not exceed ten
percent of its capital.
(b) Upon finding that such restrictions are necessary according to the criteria
set forth in section 11-101-102, the banking board may adopt rules that restrict the
total investments of a trust company under this subsection (7) to a percentage less
than ten percent of the trust company's capital. Nothing in this subsection (7) shall
authorize a trust company to contravene a lawful order of the banking board or
commissioner with respect to investments by the trust company in real estate or
corporations engaging in real estate activities. A trust company that intends to
initiate a program of investments under the authority of this subsection (7) shall
give sixty days' advance notice to the division of banking of such intent; except that
such notice may be waived in the banking board's discretion where such notice is
impracticable or unnecessary. The trust company shall also notify the division
within ten days after the commencement of the investment program. If similar
notices are required by the trust company's federal supervisory agency, the same
form of notice may be used for purposes of notice under this subsection (7).