Rule 80-1-4-.02 - Securities Underwriting(1) A bank with statutory capital base of less than $20,000,000: (a) Shall not underwrite or otherwise participate as principal in the marketing of securities except to the extent authorized by law or regulation and except for the account of and upon specific instructions from its customer.(b) Such bank may, with the permission of the department, underwrite or otherwise participate in the marketing of obligations (including limited obligation bonds, revenue bonds, and obligations that satisfy the requirements of Section 142(b)(1) of the Internal Revenue Code of 1986) issued by or on behalf of any state or political subdivision of a state, including any municipal corporate instrumentality of one or more states, or any public agency or authority of any state or political subdivision of a state ("certain municipal bonds").(2) A bank with a statutory capital based of $20,000,000 or greater: (a) May underwrite or otherwise participate in the marketing of any securities which such banks could purchase for their own account, in addition to the certain municipal bonds described in subsection (1)(b); but(b) May not underwrite open-end funds described in section (3) of Rule 80-1-4-.01.(3) All underwriting or marketing of securities shall be subject to the following conditions: (a) Accounting and other records of trading in such securities are maintained separate and apart from accounting and other records relating to purchases of securities for the bank's own account;(b) The board of directors of the bank must adopt operating policies which are reviewed at least anually regarding the types and quality of securities to be traded, holding periods for securities in inventory, limitations on the amount of securities to be carried in the name of any single obligor, and guidelines relative to disposition of securities subject to adverse market changes; and(c) Credit memoranda or prospectuses and independent audit reports covering the three (3) years immediately preceding the date of the most recent underwriting are maintained.(4) Underwriting and marketing of securities are activities also subject to federal law and regulation.Ga. Comp. R. & Regs. R. 80-1-4-.02
O.C.G.A. Sec. 7-1-61.
Original Rule entitled "Prohibitions" adopted. F. and eff. June 30, 1965.Repealed: New Rule, same title adopted. F. June 9, 1972; eff. June 29, 1972.Repealed: F. Aug. 28, 1975; eff. Sept. 17, 1975.Amended: New Rule entitled "Accounting and Record Keeping" adopted. F. Oct. 12, 1989; eff. Nov. 1, 1989.Amended: F. July 11, 1994; eff. July 31, 1994.Repealed: New Rule entitled "Securities Underwriting" adopted. F. Oct. 22, 2001; eff. Nov. 11, 2001.