Maine Revised Statutes Title 9-B Sec. 419 – Investment powers
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1. Investment and equity securities. A financial institution is authorized to purchase, sell, underwrite and hold investment securities and equity securities, consistent with safe and sound banking practices. For purposes of this section, the term “investment securities” includes credit instruments such as commercial paper, banker’s acceptances, certificates of deposit, repurchase agreements and overnight federal funds, in addition to marketable obligations in the form of bonds, notes, debentures or other similar instruments that are commonly regarded as investment securities. A financial institution’s holding of equity securities is limited to 100% of its total capital unless a higher limit is authorized by the superintendent. The purchase of speculative securities or equities is prohibited, except that a financial institution may make venture capital investments up to 20% of the institution’s total capital unless a higher limit is authorized by the superintendent.
[PL 1997, c. 398, Pt. I, §10 (NEW).]
Terms Used In Maine Revised Statutes Title 9-B Sec. 419
- capital: means the sum of common stock, paid-in common stock surplus, perpetual preferred stock, undivided profits and other capital reserves; [PL 1997, c. See Maine Revised Statutes Title 9-B Sec. 131
- Financial institution: means a universal bank or limited purpose bank organized under the provisions of this Title, and a trust company, nondepository trust company, savings bank, industrial bank or savings and loan association organized under the prior laws of this State. See Maine Revised Statutes Title 9-B Sec. 131
- Governing body: means the body that oversees the affairs of a financial institution. See Maine Revised Statutes Title 9-B Sec. 131
- Superintendent: means the Superintendent of Financial Institutions. See Maine Revised Statutes Title 9-B Sec. 131
- Total capital: means the sum of capital, as defined in subsection 6, plus capital notes and debentures, other instruments approved by the superintendent and the allowance for loan losses or other similar reserves. See Maine Revised Statutes Title 9-B Sec. 131
2. Written investment policy. A financial institution’s governing body shall establish a written investment policy, which it shall review and ratify at least annually, that addresses, at a minimum, the following:
A. Investment quality parameters; [PL 1997, c. 398, Pt. I, §10 (NEW).]
B. Investment mix and diversification; [PL 1997, c. 398, Pt. I, §10 (NEW).]
C. Investment maturities; and [PL 1997, c. 398, Pt. I, §10 (NEW).]
D. Delegation of authority to officers and committees responsible for administering the portfolio. [PL 1997, c. 398, Pt. I, §10 (NEW).]
[PL 1997, c. 398, Pt. I, §10 (NEW).]
SECTION HISTORY
PL 1997, c. 398, §I10 (NEW).