§ 28-14-5-6.5 — Purchase of speculative securities or securities not rated by a generally recognized security rating service

Indiana § 28-14-5-6.5

• Jurisdiction: Indiana
• Art. 14: CORPORATE FIDUCIARIES
• Ch. 5: Investments of Corporate Fiduciaries

Text

5. (a) A corporate fiduciary may not purchase
for its own account any bond, note, or other evidence of indebtedness
that is commonly designated as a security that is speculative in
character or that has speculative characteristics. For the purposes of
this subsection, a security is speculative or has speculative
characteristics if at the time of purchase the security:
(1) is rated below the first four (4) rating classes by a generally
recognized security rating service;
(2) is in default; or
(3) is otherwise considered speculative by the director.
(b) A corporate fiduciary may purchase for its own account a
security that is not rated by a generally recognized security rating
service if:
(1) the corporate fiduciary at the time of purchase obtains
financial information that is adequate to document the investment
quality of the security; and
(2) the security is not otherwise considered speculative by the
director.

Legislative History

As added by P.L.176-1996, SEC.32. Amended by P.L.89-2011, SEC.72.