386.030 Investment of funds of financial institutions and funds in hands of
447 words·~2 min read·
/ky/386-030A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
public officials.
(1)Banks, trust companies, insurance companies, savings and loan associations,
executors, administrators, trustees or others acting in a fiduciary capacity, trust
funds, and other financial institutions, originating mortgagee institutions, and
other institutions approved as mortgagees and meeting otherwise the
requirements of the secretary of housing and urban development, the Federal
Housing Administration or Department of Veterans Affairs to act as mortgagees
under that agency's approval program, subject to the laws of this state, may:
(a)Make such loans and advances of credit and purchases of obligations
representing loans and advances of credit as are eligible for credit
insurance or guaranty by the secretary of housing and urban
development, the federal housing administrator or administrator of
veterans' affairs, and may obtain such insurance, guaranty or other
approval;
(b)Make such loans secured by real property or leasehold, as the secretary
of housing and urban development, the federal housing administrator or
administrator of veterans' affairs insures or issues a guaranty or makes a
commitment to insure, or guaranty, and may obtain such insurance, or
guaranty;
(c)Invest their funds, eligible for investment, in notes or bonds secured by
mortgage or trust deed insured by the secretary of housing and urban
development, the federal housing administrator or administrator of
veterans' affairs, and in debentures issued by the secretary of housing
and urban development, the federal housing administrator or
administrator of veterans' affairs, and also in securities issued by national
mortgage associations; and
(d)Invest their funds in real estate mortgage notes, bonds and other
interest-bearing or dividend-paying securities (including securities of any
open-end or closed-end management type investment company or
investment trust registered under the Federal Investment Company Act of
1940) which would be regarded by prudent businessmen as a safe
investment. The fact that the persons listed in this subsection are
providing services to the foregoing investment company or trust as
investment advisor, custodian, transfer agent, registrar or otherwise shall
not preclude such persons from investing in the securities of such
investment company or trust.
(2)This state and any of its political subdivisions, or any agency or instrumentality
thereof may invest its funds and the moneys in its custody or possession,
eligible for investment, in notes or bonds described in paragraph
(c)of
subsection
(1)of this section.
(3)No law of this state requiring security upon which loans or investments may be
made, or prescribing the nature, amount or form of the security, or prescribing
or limiting interest rates upon loans or investments, or limiting investments of
capital or deposits, or prescribing or limiting the period for which loans or
investments may be made, shall apply to loans or investments made pursuant
to this section.