Section 393:27 Other Investments.
If at any time any association has funds in excess of the amounts required for loans to its members, and the payment of matured shares, and the withdrawal demand of its shareholders, it may invest such excess funds as follows:
I. In bonds, notes, certificates, and other valid obligations of the United States or of the state of New Hampshire, or of any county, city, or town of the state, issued pursuant to authority of law.
II. In bonds, notes, debentures, or other securities or obligations issued by any Federal Home Loan Bank of the United States, or in obligations of agencies of the United States as are designated by written ruling of the bank commissioner.
III. In the shares of any other building and loan association, savings and loan association or cooperative bank doing business in this state provided that the limitation imposed by RSA 393:36 shall apply to investments hereunder and no association shall sell shares to another corporation, nor permit the transfer of shares, in excess of said limitation.
IV. In notes secured by mortgage which the federal housing administration has insured, or made commitment to insure, if the laws of the United States entitle the mortgagee to receive payment of such insurance in cash or in debentures fully guaranteed as to principal and interest by the United States.
V. In notes secured by any book of deposit issued by any savings bank or by a savings department of a state bank existing under the laws of the state of New Hampshire or the Commonwealth of Massachusetts, or a national bank whose principal place of business is located in New Hampshire or the Commonwealth of Massachusetts, or in notes secured by the shareholder's passbook of any building and loan association, cooperative bank, or federal savings and loan association whose principal place of business is located in the state of New Hampshire or the Commonwealth of Massachusetts; and in notes secured by any book of deposit issued by any savings bank, national bank, or in notes secured by the shareholder's passbook of any building and loan association or cooperative bank, or federal savings and loan association whose principal place of business is located outside the state of New Hampshire or the Commonwealth of Massachusetts, provided that such savings bank, national bank, building and loan association, cooperative bank, or federal savings and loan association located outside the state of New Hampshire or Commonwealth of Massachusetts is insured by the Federal Savings and Loan Insurance Corporation or the Federal Deposit Insurance Corporation, and provided further that the investment in the case of banks shall not be in excess of the amount due the depositor as shown in said deposit book and in the case of building and loan associations, federal savings and loan associations and cooperative banks shall not be in excess of the withdrawal value due the shareholder. Any shareholder of an association may borrow on the shares of such corporation up to the full value thereof at the time of the loan without the prior approval of the board of directors, subject to the availability of funds and the requirements of RSA 393:30, RSA 393:31, and RSA 393:32.
VI. In deposits of its funds in a commercial or savings account with any national bank, mutual savings bank, guaranty savings bank, state bank or trust company, provided the institution where such funds are deposited is insured with the Federal Savings and Loan Insurance Corporation or the Federal Deposit Insurance Corporation. All deposits made outside the New England states but within the United States of America, together with any other investments in a federally insured institution, shall not exceed in the aggregate 1/4 of one percent of the deposits of such depository institution.
VII. In bonds or stock of a business and industrial development corporation of any city, town, or village located in this state, the aggregate so invested in any one business and industrial development corporation not to exceed 1/10 of one percent of its total share liabilities.
VIII. In stocks or bonds as are designated as legal investments on the legal list as prepared and maintained by the bank commissioner under RSA 387:25. Further provided that unless the guaranty fund of a cooperative bank or building and loan association is full and unimpaired, and the value of its assets as determined by the commissioner shall exceed the amount of the shares by at least 5 percent, it shall be unlawful for it to invest in any preferred or common stocks, including shares of investment trusts. Investments under this section shall be limited to 10 percent of share liability, and not exceeding 15 percent of the surplus, guaranty fund, undivided profits and unallocated reserves shall be invested in the obligation or stock of any individual, partnership, or corporation, except public obligations.
Source. 1937, 106:3. 1939, 72:9. RL 314:23. 1953, 165:1. RSA 393:27. 1961, 136:6, 7. 1965, 85:1; 317:4. 1967, 118:1. 1969, 294:1. 1973, 426:1. 1981, 165:1. 2000, 161:6, eff. July 22, 2000.