Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 1 - Banking, Securities, Small Loans and Corporations
Chapter 02 - Banking
Article 2 - Banking Practices
3 AAC 02.205 - Bank investments
Universal Citation: 3 AK Admin Code 02.205
Current through February 24, 2025
(a) In addition to loans, subsidiaries, and acquisitions expressly authorized by AS 06.05 and this chapter, a state bank may deal in, underwrite, and invest in for its own account
(1) direct or guaranteed obligations
of the United States, either directly or in the form of securities of, or other
interests in, an open-end management type investment company or investment
trust registered under 15 U.S.C. 80a -1 - 80a-64 (Investment
Company Act of 1940), if
(A) the portfolio of
the investment company or investment trust is limited to obligations of the
United States government and repurchase agreements fully collateralized by the
obligations; and
(B) the investment
company or investment trust takes delivery of the collateral directly or
through an authorized custodian;
(2) general obligations of this state or its
political subdivisions;
(3) general
obligations of another state of the United States or its political
subdivisions;
(4) revenue
obligations of this state or its political subdivisions subject to the
limitation of (b) of this section;
(5) revenue obligations of another state of
the United States or its political subdivisions subject to the limitation of
(b) of this section;
(6)
obligations of instrumentalities of the United States government including
Federal Intermediate Credit Banks, Federal Land Banks, the Federal National
Mortgage Association, and Banks for Cooperatives;
(7) commercial paper of prime or equivalent
quality as rated by a nationally recognized rating service subject to the
limitation of (b) of this section;
(8) secured corporate obligations ranked or
graded in the top four categories by a nationally recognized rating service
subject to the limitation of (b) of this section;
(9) repealed 12/27/2023;
(10) stock in the Federal National Mortgage
Association, a Federal Reserve Bank, or a Federal Home Loan Bank;
(11) the stocks, bonds, and other securities
of
(A) a corporation licensed under AS 10.13;
or
(B) a corporation attempting to
become licensed under AS 10.13 if the corporation intends to use the proceeds
to fulfill the tasks necessary to become licensed under AS 10.13; or
(12) obligations permitted under
12 U.S.C.
24 (Seventh) and (Eleventh), as of July 30,
2008, and adopted by reference, subject to the same restrictions and
limitations imposed on national banks and except as prohibited elsewhere in
this chapter.
(b) A state bank may not underwrite or invest in for its own account an amount exceeding 15 percent of its combined capital, surplus, and undivided profits in any one issue of securities authorized in (a)(4) and (a)(5) of this section or with any one obligor of the securities authorized in (a)(7) - (a)(9) and (a)(11) of this section.
Authority:AS 06.05.005
AS 06.05.270
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