N.Y. Comp. Codes R. & Regs. tit. 3 § 89.4

Current through Register Vol. 46, No. 45, November 2, 2024

Section 89.4 - Prohibited investments

No thrift institution shall, pursuant to the provisions of section 235.30 or 379.5 of the Banking Law:

(a) invest in or otherwise acquire any equity security (or any security convertible into an equity security) issued by any bank, trust company, savings bank, savings and loan association, bank holding company, banking organization, life insurance company or corporation engaged principally in the issue, flotation, underwriting, public sale, or distribution at wholesale or retail or through participation of any type of security;

(b) invest in any security, other than a qualified debt or qualified equity security, in which a prudent person of discretion and intelligence in such matters seeking a reasonable income and preservation of capital would invest;

(c) own or acquire more than five percent of any class of the issued and outstanding equity securities of any issuer;

(d) own or acquire any equity security if such ownership or acquisition would cause (1) more than 10 percent of the thrift institution's assets to be invested in equity securities, or (2) more than one percent of the thrift institution's assets to be invested in the equity securities of any single issuer;

(e) acquire any securities other than for investment purposes, or acquire any securities with a view to the public distribution thereof;

(f) acquire securities on margin;

(g) purchase or sell, or offer to purchase or sell, any qualified debt security or qualified equity security in violation of any applicable State or Federal securities laws; or

(h) acquire any qualified debt security, other than one described in Banking Law, section 235.1, 235.2, 235.3, 235.4, 235.5, 235.11, 235.15, 235.24, 235.24 -a, 235.24-b, 235.24-c or 235.27, if the amount of consideration paid for such debt security, when added to the aggregate amount of loans outstanding to the issuer of such debt security, would cause the thrift institution to be in violation of the provisions of the Banking Law (and the rules and regulations promulgated thereunder) which limit the aggregate amount of loans which a thrift institution may make to one borrower.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 89.4