§ 54C-141. Limitations on investment in stocks and securities. - North Carolina Statutes

§ 54C‑141.  Limitationson investment in stocks and securities.

(a)        No savings bankshall make an investment in the capital stock of any other State or federaldepository institution that represents more than five percent (5%) of thecapital stock of that depository institution.

(b)        No savings bankshall invest in stock of other than investment grade. No savings bank shallinvest in the aggregate more than fifty percent (50%) of its net worth in thestocks of other corporations, firms, partnerships, or companies, unless thestock is purchased to protect the savings bank from loss. Of this amount, nomore than two and one‑half percent (2 1/2%) of the savings bank's networth may be invested in the stock or securities of any one issuer. Thislimitation shall not apply to stock or ownership interests in corporations,firms, partnerships, or companies that are subsidiaries of the savings bank.The term "invest" is deemed to include operating a business entityacquired by the savings bank, provided, however, that no savings bank shallmake any investment resulting in operations that are not closely related to thesavings bank business without the prior written approval of the Commissioner ofBanks. Any stocks owned or hereafter acquired in excess of the limitationsimposed in this section shall be disposed of at public or private sale withinsix months after the date of acquiring the same, and if not so disposed of theyshall be charged to the profit and loss account, and no longer carried on thebooks as an asset. The limit of time in which the stocks are disposed of orcharged off the books of the savings bank may be extended by the Commissionerof Banks if the Commissioner of Banks determines it is in the best interest ofthe savings bank that the extension be granted.

(c)        This limitationshall not apply with respect to obligations of the government of the UnitedStates or its agencies, or to other obligations guaranteed by the UnitedStates, North Carolina, or any other state, or of a city, town, township,county, school district, or other political subdivision of this State. (1991, c. 680, s. 1; 2001‑193,s. 16.)