(1)The board shall have complete control and
authority to invest the funds of the association. Preference shall be given to
Colorado investments consistent with sound investment policy.
(2)Investments may be made without limitation in the following:
(a)Obligations of the United States government;
(b)Obligations fully guaranteed as to principal and interest by the United
States government;
(c)State and municipal bonds;
(d)Corporate notes, bonds, and debentures whether or not convertible;
(e)Railroad equipment trust certificates;
(g)Loans secured by first or second mortgages or deeds of trust on real
property; except that the origination of mortgages or deeds of trust on residential
real property is prohibited. For the purposes of this paragraph (g) re
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(1) The board shall have complete control and
authority to invest the funds of the association. Preference shall be given to
Colorado investments consistent with sound investment policy.
(2) Investments may be made without limitation in the following:
(a) Obligations of the United States government;
(b) Obligations fully guaranteed as to principal and interest by the United
States government;
(c) State and municipal bonds;
(d) Corporate notes, bonds, and debentures whether or not convertible;
(e) Railroad equipment trust certificates;
(f) Real property;
(g) Loans secured by first or second mortgages or deeds of trust on real
property; except that the origination of mortgages or deeds of trust on residential
real property is prohibited. For the purposes of this paragraph (g) residential real
property means any real property upon which there is or will be placed a structure
designed principally for the occupancy of from one to four families, a mobile home,
or a condominium unit or cooperative unit designed principally for the occupancy of
from one to four families.
(g.5) Investments in stock or beneficial interests in entities formed for the
ownership of real property by tax-exempt organizations pursuant to section 501
(c)(25) of the federal Internal Revenue Code of 1986, as amended; except that the
percentage of any entity's outstanding stock or bonds owned by the association
shall not be limited by the provisions of paragraph (b) of subsection (3) of this
section;
(h) Participation agreements with life insurance companies; and
(i) Any other type of investment agreements.
(3) Investments may also be made in either common or preferred stock with
the following limitations:
(a) The aggregate amount of moneys invested in corporate stocks or
corporate bonds, notes, or debentures which are convertible into corporate stock or
in investment trust shares shall not exceed sixty-five percent of the then book
value of the fund.
(b) No investment of the fund in common or preferred stock, or both, of any
single corporation shall be of an amount which exceeds five percent of the then
book value of the fund, nor shall the fund acquire more than twelve percent of the
outstanding stock or bonds of any single corporation.
(c) (I) Each investment firm offering for sale to the board corporate stocks,
bonds, notes, debentures, or a mutual fund that contains corporate securities, shall
disclose, in any research or other disclosure documents provided in support of the
securities being offered, to the board whether the investment firm has an
agreement with a for-profit corporation that is not a government-sponsored
enterprise, whose securities are being offered for sale to the board and because of
such agreement the investment firm:
(A) Had received compensation for investment banking services within the
most recent twelve months; or
(B) May receive compensation for investment banking services within the
next three consecutive months.
(II) For the purposes of this paragraph (c), investment firm means a bank,
brokerage firm, or other financial services firm conducting business within this
state, or any agent thereof.