Section 394-B:19 Corporate Securities.
The following described securities are legal investments:
I. Obligations in the form of bonds and notes issued, assumed, or guaranteed by companies incorporated in the United States of America. All such obligations shall be rated among the 3 highest ratings of one or more rating services as defined in RSA 387:1, XVI. Convertible bonds of a lesser rating will be legal if the common stock would otherwise qualify.
II. All preferred stocks issued, assumed or guaranteed by companies incorporated in the United States. All such obligations shall be rated among the 3 highest ratings of one or more rating services as defined in RSA 387:1, XVI.
III. The common stock or senior securities convertible into common stock of companies incorporated in the United States of America provided:
(a) The stock is listed on the New York Stock Exchange or the American Stock Exchange or is listed in Over The Counter Market Issues quoted through the National Association of Security Dealer Automated Quotation System and is ranked among the 3 highest ratings as defined in RSA 387:1, XVI.
(b) At the time of purchase, any common stock investment under this section when added to the book value of all other common stock securities presently owned of the same company shall not exceed 5 percent of a credit union's capital funds.
IV. (a) The bonds and notes issued, assumed or guaranteed by any company organized under the laws of this state or carrying on its principal manufacturing within this state, provided that:
(1) Such company shall have, at the date of investment, a net worth of at least $1,000,000; and
(2) In at least 4 of the 5 years next preceding the date of investment, the net income available for interest plus the federal income tax of such company shall have been not less than twice the interest on its obligations.
(b) The dividend-paying capital stock of any company organized under the laws of this state or carrying on its principal manufacturing within this state, provided:
(1) All securities, if any, senior to such stock are legal investments hereunder, and such company shall have at the date of such investment a net worth of at least $1,000,000.
(2) In at least 4 of the 5 years next preceding the date of investment, such company shall have earned net income available for dividends on the entire outstanding issue of the stock in question of not less than 4 percent on the par or stated value of such stock.
(3) No credit union shall hold more than 5 percent of the outstanding stock of any such company.
Source. 1983, 195:1, eff. Aug. 14, 1983.