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If the board of directors determines at any time that funds are available in excess of the demands and needs for loans, maturities, and withdrawals, a savings bank may invest such funds as provided in this Part:

(1)  In demand, time, or savings deposits or accounts, withdrawable accounts or other insured obligations of any financial institution the accounts of which are insured by a federal agency.

(2)  In participating interests in mortgage loans of a type which the savings bank would be authorized to make, but only if the other participants are:

(a)  Savings banks organized under this Chapter;

(b)  Savings and loan associations, banks, and credit unions organized under the laws of this state;

(c)  Associations or corporations insured by an instrumentality of the United States;

(d)  Instrumentalities of or corporations owned wholly or in part by the United States or this state; or

(e)  Subject to existing laws and regulations, service corporations of a savings bank organized under this Chapter or subsidiaries of a savings and loan association, bank, or credit union organized under the laws of this state or the United States.

(3)  In obligations of, or obligations that are fully guaranteed by, the United States; and in stocks or obligations of any Federal Reserve Bank, Federal Home Loan Bank, the Student Loan Market Association, the Government National Mortgage Association, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Deposit Insurance Corporation, or any other agency of the United States.

(4)  In bonds or other direct obligations of or guaranteed as to principal and interest by this state.

(5)  In obligations which by the laws of this state are made legal investments for savings banks.

(6)  In bonds or other evidences of indebtedness which are direct general obligations of the state and its agencies, boards, commissions, departments, parishes, municipalities, or other political subdivisions, or in bonds or other evidences of indebtedness which are payable from revenues or earnings specifically pledged therefore of a political subdivision, but in no event shall the total amount of such securities of any one maker or obligor exceed ten percent of the savings bank’s capital, nor shall the aggregate amount of investments under this Paragraph exceed ten percent of the savings bank’s total assets.

(7)  With the prior written consent of the commissioner, a savings and loan association which has converted to a savings bank charter may continue to invest in the below listed activities which were commenced prior to the conversion, for the development of homesites and housing for sale or rental, including but not limited to projects for the reconstruction, rehabilitation, or rebuilding of residential properties to meet the minimum standards of health and occupancy prescribed by appropriate local authorities, and the provision of accommodations for retail stores, shops, and other community services which are reasonably incident to such housing, or in the shares of a corporation which owns one or more of such projects and which is wholly owned by one or more financial institutions whose investments are regulated by the laws of this state or of the United States.  In no event shall the total investment in any one project exceed twenty percent of the savings bank’s total capital, nor shall the aggregate investment under this Paragraph exceed ten percent of its total assets.  No savings bank shall make an investment of this type unless it is in compliance with the capital requirements of this Chapter and with the capital maintenance requirements of its insurer of deposit accounts.  The commissioner shall approve the investment only if the savings bank shows:

(a)  That the savings bank has adequate assets available for such an investment;

(b)  That the proposed investment does not exceed the reasonable market value of the property or interest therein as determined in accordance with the appraisal requirements of this Part;

(c)  That all other requirements of this Part have been met; and

(d)(i)  A savings bank may petition the commissioner to allow a waiver of the requirements if it has already exceeded the limits established thereby prior to conversion of its charter to a savings bank.

(ii)  Nothing contained in this Paragraph prohibits a savings bank from developing or building on land acquired by it under any other provision of this Chapter nor from completing the construction of buildings pursuant to any construction loan contract where the borrower has failed to comply with the terms of such contract.

(8)(a)  In marketable investment securities, but in no event shall the total amount of such securities of any one maker or obligor exceed ten percent of the savings bank’s total capital, nor shall the aggregate amount of investments under this Paragraph exceed ten percent of such total assets.

(b)  As used in this Part, the term “marketable investment securities” does not include stocks but means investment grade marketable obligations evidencing indebtedness of any person in the form of bonds, notes, or debentures commonly known as investment securities, and of a type customarily sold on recognized exchanges or traded over the counter.

(c)  As used in this Part, the term “investment grade” means being rated in one of the four highest categories by at least one nationally recognized rating service.

(d)  The commissioner may specify, by regulation, procedures for underwriting such investments.

(9)  In stocks or obligations of business development corporations chartered by this state or by the United States or an agency thereof, but in no event shall the aggregate amount of stock exceed ten percent of the savings bank’s total assets.

(10)  In obligations of urban investment corporations chartered under the laws of this state, or the United States, or in certificates of beneficial interest of urban renewal investment trusts, but in no event shall the aggregate amount of such stock, obligations, or beneficial interest certificates of any one maker exceed ten percent of the savings bank’s total capital, nor shall the aggregate amount of investments under this Paragraph exceed ten percent of such total assets.

(11)  Subject to the regulation of the commissioner, in loans deemed sufficiently secured by the board of directors of the savings bank.  However, if the security is stock or equity securities of any kind, other than those of a financial institution, the stock or securities shall be listed on a national exchange or actively traded and quoted on an over the counter market or its value shall be ascertainable in accordance with regulations promulgated by the commissioner.

(12)  In commercial paper.  As used in this Part, the term “commercial paper” means short-term obligations having a maturity ranging from two to two hundred seventy days issued by banks, corporations, or other borrowers.  Investments in commercial paper under this Part shall be in securities rated in one of the four highest categories by a nationally recognized rating service.

(13)  Notwithstanding any provision of this Chapter to the contrary, a savings bank may purchase shares of or otherwise acquire equity interests in insurance companies and insurance holding companies organized to provide insurance for savings institutions and corporations and individuals affiliated with savings institutions, provided ownership of equity interests is a prerequisite to obtaining directors and officers’ and blanket bond insurance through such company or companies.  The commissioner may promulgate regulations concerning the size of each savings bank’s investment and manner of holding such investments.

(14)  With the prior written consent of the commissioner, a savings bank may invest, in the aggregate, no more than ten percent of its total capital in stock or other equity securities.  Of this amount, no more than two percent of the savings bank’s total capital may be invested in the equity securities of any one issuer.  This limitation shall not apply with respect to equity securities of the government of the United States, its agencies, or instrumentalities.  The commissioner may adopt such rules and regulations as are necessary to carry out the provisions of this Paragraph, including but not limited to requirements as to diversification and resource management.

(15)  Subject to the prior approval of the commissioner, in equity or debt securities or instruments of a service corporation subsidiary of the savings bank.

(16)(a)  Through advances of federal funds to designated depositories, provided that such advances are made on the condition that they be repaid on the next business day following the date on which the advance is made.

(b)  For the purposes of this Part, the term “federal funds” shall mean funds which a savings bank has on deposit at a depository which are exchangeable for funds on deposit at a Federal Reserve Bank or a Federal Home Loan Bank; and

(c)  The term “business day” shall mean any day on which the savings bank, the depository, the Federal Reserve Bank, and the Federal Home Loan Bank where the funds are on deposit are all open for general business.

Acts 1990, No. 816, §1, eff. Sept. 1, 1990.