Sec. 06.15.270. Investment in corporate securities.

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(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 is less;

(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.