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- Alaska Statutes.
- Title 6. Banks and Financial Institutions
- Chapter 15. Mutual Savings Bank Act
- Section 270. Investment in Corporate Securities.
previous: Section 260
. Investment in Bankers' Acceptances.
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. Investment in Promissory Notes.
AS 06.15.270. Investment in Corporate Securities.
- (a) Subject to the provisions of this chapter and regulations under this chapter a mutual bank may invest in corporate
securities, subject to the exercise of the same degree of care and prudence that persons prompted by self-interest
generally exercise in their own affairs, and subject to the following limitations:
- (1) a mutual bank may not invest in any corporate obligation, other than under AS 06.15.280
, that will mature by its terms within one year from the date of its issuance, or if issued or made in series or
repayable in installments, has an average maturity of less than one year;
- (2) a mutual bank may not invest in
- (A) stocks an amount greater than 10 percent of its assets or 100 percent of its surplus and undivided profits, whichever
- (B) common stock an amount greater than six percent of its assets or 60 percent of its surplus and undivided profits,
whichever is less;
- (C) the common and preferred stocks of one issuer an amount greater than one percent of its assets; or
- (D) more than two percent of the total issued and outstanding shares of stock of any one issuer.
- (b) The limitations of this section do not apply to a mutual bank's investments in a wholly owned subsidiary corporation
that owns or leases real or personal property for the purpose of providing a building and facilities to be used
primarily for the conduct of the authorized banking activities of the mutual bank.
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