17:9A-179.1. Limitations on investments in railroad obligations
279 words·~1 min read·
/nj/title-17/chapter-9a/17-9a-179-1·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. No savings bank shall make an investment pursuant to section 177 or section 179 at any time when the total of all its investments made pursuant to both such sections exceeds, or if the making of any such investment would cause such total to exceed, twenty-five per centum of its deposits.
B. No savings bank shall make an investment pursuant to section 177 or section 179 in any obligation for the payment of which any one corporation is primarily liable, at any time when the total of all its investments in such obligations of such corporation exceeds, or if the making of such an investment would cause such total to exceed, two per centum of its deposits; nor shall any savings bank make an investment pursuant to section 177 or section 179 in any obligation
(1)which is secured by lien upon properties in any one system of railroads under unified operation, or
(2)for the payment of which any corporation in such system is primarily liable, or
(3)which is dependent as to legality for investment by a savings bank upon the obligation, assumption or guarantee of any corporation in such system, at any time when the total of all its investments in such obligations of all corporations in such system exceeds, or if the making of such an investment would cause such total to exceed, five per centum of its deposits. The acquisition of any such obligation as a result of a refunding or other refinancing or exchange of such obligations theretofore invested in shall not be considered the making of an investment for the purposes of this subsection.
L.1948, c. 67, p. 316, s. 179.1.