{"data":{"id":"us-ok/okla.-stat.-tit.-6-6-806","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 6, § 6-806","heading":"Investments - Underwriting - Limitations","body":"A. A bank may purchase and sell equity and investment\n\nsecurities without recourse, solely on the order and for the account\n\nof a customer, and may not underwrite an issue of securities except\n\nas otherwise provided by the Banking Code or rules adopted\n\nthereunder.\n\nB. Except as otherwise provided by the Banking Code or rules\n\nadopted thereunder, a bank may not invest its funds in equity\n\nsecurities except as necessary to avoid or minimize a loss on a loan\n\nor investment previously made in good faith.\n\nC. A bank may purchase investment securities for its own\n\naccount under limitations and restrictions prescribed by rules\n\nadopted under the Banking Code. Except as otherwise provided by\n\nthis section, the total amount of the investment securities of any\n\none obligor or maker, held by the bank for its own account, may not\n\nexceed an amount equal to thirty percent (30%) of the bank's capital\n\nusing data from the most recent quarterly report of condition of the\n\nbank or trust company.\n\nD. With the approval of the Commissioner, a bank may establish\n\nand capitalize one or more operating subsidiaries and financial\n\nsubsidiaries, subject to rules promulgated by the Board.\n\nE. Notwithstanding subsection A, B or C of this section, a bank\n\nmay, with prudent banking judgment, deal in, underwrite, or purchase\n\nfor its own account, without limitation as to amount unless\n\notherwise indicated in this subsection:\n\n1. Bonds and other legally created general obligations of a\n\nstate, an agency or political subdivision of a state, the United\n\nStates, or an agency or instrumentality of the United States;\n\n2. An investment security that this state, an agency or\n\npolitical subdivision of this state, the United States, or an agency\n\nor instrumentality of the United States has unconditionally agreed\n\nto purchase, insure, or guarantee;\n\n3. Investment securities (including limited obligation bonds,\n\nrevenue bonds, and obligations that satisfy the requirements of\n\nSection 142(b)(1) of the Unites States Internal Revenue Code) issued\n\nby or on behalf of any state or political subdivision of a state,\n\nincluding any municipal corporate instrumentality of one or more\n\nstates, or any public agency or authority of any state or political\n\nsubdivision of a state, if the bank is well capitalized (as defined\n\nin 12 U.S.C., Section 1831o);\n\n4. Investment securities issued under the authority of the\n\nFederal Farm Loan Act;\n\n5. Investment securities insured by the Secretary of Housing\n\nand Urban Development under Title IX of the National Housing Act or\n\ninvestment securities insured by the Secretary of Housing and Urban\n\nDevelopment pursuant to Section 207 of the National Housing Act, if\n\nthe investment securities to be issued in payment of the insured\n\nobligations are guaranteed as to principal and interest by the\n\nUnited States;\n\n6. Securities that are offered and sold under 15 U.S.C.,\n\nSection 77d(5);\n\n7. Mortgage-related securities, as defined by 15 U.S.C.,\n\nSection 78c(a), except that notwithstanding Section 347 of the\n\nRiegle Community Development and Regulatory Improvement Act of 1994,\n\na note or obligation that is secured by a first lien on one or more\n\nparcels of real estate on which is located one or more commercial\n\nstructures shall be subject to the limitations of subsection C of\n\nthis section;\n\n8. Investment securities issued or guaranteed by the Federal\n\nHome Loan Banks, Federal Home Loan Mortgage Corporation, the Federal\n\nNational Mortgage Association, the Government National Mortgage\n\nAssociation, the Federal Agriculture Mortgage Association, or the\n\nFederal Farm Credit Banks Funding Corporation;\n\n9. Purchase and hold for its own account shares of stock of\n\nsmall business investment companies in an aggregate amount not\n\nexceeding five percent (5%) of the capital stock and surplus of the\ne Corporation, the Federal\n\nNational Mortgage Association, the Government National Mortgage\n\nAssociation, the Federal Agriculture Mortgage Association, or the\n\nFederal Farm Credit Banks Funding Corporation;\n\n9. Purchase and hold for its own account shares of stock of\n\nsmall business investment companies in an aggregate amount not\n\nexceeding five percent (5%) of the capital stock and surplus of the\n\nbank, and receive and retain the benefits of the stock ownership,\n\nincluding stock dividends;\n\n10. Purchase and hold for its own account shares of stock of a\n\nbanker's bank set forth in Section 402.1 of this title, but in no\n\nevent shall the total amount of the stock held by the bank exceed\n\nten percent (10%) of the capital of the bank and in no event shall\n\nthe purchase of the stock result in the bank acquiring more than\n\nfive percent (5%) of any class of voting securities of the banker’s\n\nbank; and\n\n11. Stock of a Federal Home Loan Bank.\n\nF. Mutual Funds.\n\n1. A bank may invest for its own account in equity securities\n\nof an investment company registered under the Investment Company Act\n\nof 1940 and the Securities Act of 1933 if the portfolio of the\n\ninvestment company consists wholly of investments in which the bank\n\ncould invest directly for its own account.\n\n2. If the portfolio of an investment company described by\n\nparagraph 1 of this subsection consists wholly of investments in\n\nwhich the bank could invest directly without limitation under\n\nsubsection E of this section, the bank may invest in the investment\n\ncompany without limitation.\n\n3. If the portfolio of an investment company described by\n\nsubsection C of this section contains an investment or obligation\n\nthat is subject to the limits of Section 802 of this title, the bank\n\nmay invest in the investment company not more than an amount equal\n\nto thirty percent (30%) of the bank's capital.\n\n4. A bank that invests in an investment company as provided by\n\nthis section shall periodically determine that its pro rata share of\n\nany security in the portfolio of the investment company is not in\n\nexcess of applicable investment and lending limits by reason of\n\nbeing combined with the bank's pro rata share of that security held\n\nby all other investment companies in which the bank has invested and\n\nwith the bank's own direct investment and loan holdings.\n\nG. Other Limitations. A bank may not purchase for its own\n\naccount, in any amount, paving, sewer or other special improvement\n\nobligations that are payable from the proceeds of special\n\nassessments.\n\nH. Assets shall not be carried above cost. With the exception\n\nof securities held by the bank for sale, no bank or trust company\n\nshall, except with the previous written consent of the Commissioner,\n\nenter or at any time carry on its books any of its assets at a\n\nvaluation exceeding the actual cost to the bank or trust company.","path":["OK Code","Title 6"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os6.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"9f3f422344bb8abc1b608807ad31b4c5e2000d96a0aec707f74f52fcdca1a348","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-6-6-805","next":"us-ok/okla.-stat.-tit.-6-6-807"},"notice":"GroundRules: Original legal text. Not legal advice."}