§ 28-6.1-10-8.5 — Purchase of speculative securities or securities not rated by a generally recognized security rating service

Indiana § 28-6.1-10-8.5

• Jurisdiction: Indiana
• Art. 6.1: SAVINGS BANKS
• Ch. 10: Savings Banks Dealing in Investment Securities

Text

5. (a) A savings bank 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 savings bank may purchase for its own account a security that
is not rated by a generally recognized security rating service if:
(1) the savings bank 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.20. Amended by P.L.89-2011, SEC.46.