2016 Kentucky Revised Statutes CHAPTER 386 - ADMINISTRATION OF TRUSTS -- LEGAL INVESTMENTS -- UNIFORM PRINCIPAL AND INCOME ACT .030 Investment of funds of financial institutions and funds in hands of public officials.
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386.030 Investment of funds of financial institutions and funds in hands of public
officials.
(1)
(2)
(3)
Banks, trust companies, insurance companies, savings and loan associations,
executors, administrators, trustees or others acting in a fiduciary capacity, trust
funds, and other financial institutions, originating mortgagee institutions, and other
institutions approved as mortgagees and meeting otherwise the requirements of the
secretary of housing and urban development, the Federal Housing Administration or
Veterans Administration to act as mortgagees under that agency's approval program,
subject to the laws of this state, may:
(a) Make such loans and advances of credit and purchases of obligations
representing loans and advances of credit as are eligible for credit insurance or
guaranty by the secretary of housing and urban development, the federal
housing administrator or administrator of veterans' affairs, and may obtain
such insurance, guaranty or other approval;
(b) Make such loans secured by real property or leasehold, as the secretary of
housing and urban development, the federal housing administrator or
administrator of veterans' affairs insures or issues a guaranty or makes a
commitment to insure, or guaranty, and may obtain such insurance, or
guaranty;
(c) Invest their funds, eligible for investment, in notes or bonds secured by
mortgage or trust deed insured by the secretary of housing and urban
development, the federal housing administrator or administrator of veterans'
affairs, and in debentures issued by the secretary of housing and urban
development, the federal housing administrator or administrator of veterans'
affairs, and also in securities issued by national mortgage associations; and
(d) Invest their funds in real estate mortgage notes, bonds and other interestbearing or dividend-paying securities (including securities of any open-end or
closed-end management type investment company or investment trust
registered under the Federal Investment Company Act of 1940) which would
be regarded by prudent businessmen as a safe investment. The fact that the
persons listed in this subsection are providing services to the foregoing
investment company or trust as investment advisor, custodian, transfer agent,
registrar or otherwise shall not preclude such persons from investing in the
securities of such investment company or trust.
This state and any of its political subdivisions, or any agency or instrumentality
thereof may invest its funds and the moneys in its custody or possession, eligible for
investment, in notes or bonds described in paragraph (c) of subsection (1) of this
section.
No law of this state requiring security upon which loans or investments may be
made, or prescribing the nature, amount or form of the security, or prescribing or
limiting interest rates upon loans or investments, or limiting investments of capital
or deposits, or prescribing or limiting the period for which loans or investments may
be made, shall apply to loans or investments made pursuant to this section.
Effective: July 15, 1986
History: Amended 1986 Ky. Acts ch. 391, sec. 2, effective July 15, 1986. -- Amended
1984 Ky. Acts ch. 408, sec. 66, effective July 13, 1984. -- Amended 1972 Ky. Acts
ch. 327, sec. 1. -- Amended 1970 Ky. Acts ch. 205, sec. 1. -- Amended 1968 Ky.
Acts ch. 152, sec. 159. -- Amended 1960 Ky. Acts ch. 163, sec. 1. -- Recodified 1942
Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4706-6, 47067, 4706-9.
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