Section 387:3 Limitations.
The following limitations shall be observed with respect to the investments authorized by this chapter:
I. Except as otherwise provided in this chapter, not exceeding 15 percent of capital funds shall be invested in the obligations or stock of any individual, partnership, or corporation except public obligations, obligations of agencies of the United States as are designated by written ruling of the bank commissioner, loans authorized by RSA 387:4, IV and V, and liabilities for money borrowed to the extent that they shall be secured, covered, underwritten, or protected as to principal and interest by guaranties, or by commitments or agreements to take over or purchase the same, made by or on behalf of any federal reserve bank, or the United States or the state of New Hampshire, or any other state, or any department, bureau, board, commission or establishment of the United States, or the state of New Hampshire, or any other state including any corporation wholly owned directly or indirectly by the United States, or the state of New Hampshire, or any other state, for the performance of which guaranties, commitments or agreements the faith of the United States, or the state of New Hampshire, or any other state is pledged. Notwithstanding the foregoing a bank having deposits of $1,500,000 or less may invest, in loans authorized by RSA 387:4, I, an amount to any one borrower not exceeding 2 1/2 percent of deposits or 15 percent of capital funds, whichever is greater, but in no case in excess of $22,500, unless in such case 15 percent of capital funds exceeds said latter sum, in which case the limit shall be 15 percent of capital funds for such bank.
I-a. Obligations as endorser or guarantor of notes which carry a full recourse endorsement or unconditional guarantee by the individual, partnership or corporation transferring the same shall be subject to the limits established by paragraph I; provided, however, that, if the bank's files or the knowledge of its officers of the financial condition of each maker of such notes is reasonably adequate, and upon certification by an officer or employee of the bank designated for that purpose by the board of trustees or directors of the bank that the responsibility of each maker of such notes has been evaluated and that the bank is relying primarily upon each such maker for the payment of such notes, the limitations of paragraph I as to the obligations of each such maker shall be the applicable loan limitation. Such certification of such responsibility evaluation reliance for payment shall be in writing and shall be retained as part of the records of such bank.
II. Not exceeding 10 percent of deposits shall be invested in each of the following types of security: (1) Bonds of the Dominion of Canada, its provinces and cities, and (2) Real estate mortgage loans authorized by RSA 387:4, I if the amount of the loan exceeds 80 percent of the value of the real estate by which it is secured. Provided further that no mortgagor, with respect to real estate mortgage loans which fall in this category, shall be permitted, directly or indirectly, to mortgage to any bank at any one time more than 2 dwelling units of capacity not exceeding 4 families each.
II-a. Not exceeding 15 percent of deposits shall be invested in the following types of security: (1) Unsecured loans described in RSA 387:5, IV.
III. Not exceeding 25 percent of the deposits shall be invested in loans secured by each of the classes of collateral described in RSA 387:5, I, II and III.
III-a. Not exceeding 5 percent of deposits shall be invested in the class of collateral described in RSA 387:5, III-c.
IV. Not exceeding 90 percent in aggregate of the deposits shall be invested in loans authorized by RSA 387:4 provided, however, (1) that to the extent investments in such loans shall exceed in the aggregate 80 percent of deposits an amount not less than such excess shall be invested either in that portion of mortgage obligations which is guaranteed by the administrator of veterans' affairs under Title III of the Servicemen's Readjustment Act of 1944, as amended from time to time, or in mortgage obligations wholly guaranteed under such title, or in mortgage obligations the payment of which is insured by the United States Secretary of Housing and Urban Development or by the Secretary of Agriculture, or that portion of a loan guaranteed by a private mortgage guaranty insurance company licensed to do business in the state of New Hampshire and approved by the bank commissioner, and (2) that not exceeding 10 percent of the deposits shall be invested in loans secured by mortgages upon real estate outside of New England and not otherwise insured or guaranteed as provided in RSA 387:4, IV and V. In determining whether investments in loans authorized by RSA 387:4 exceed in the aggregate 80 percent of deposits, investments in such loans funded by the proceeds of (1) loans made to a savings bank by the New Hampshire housing finance authority pursuant to RSA 204-C:13, or (2) advances made to a savings bank by a Federal Home Loan Bank under the Federal Home Loan Bank Act, or (3) loans or advances made to a savings bank by any other New Hampshire or federal agency or bank, shall be excluded from consideration.
V. Not exceeding 65 percent in aggregate of the deposits shall be invested in corporate securities, New Hampshire securities, banks and bank holding company securities, and investment trust shares; provided, however, that not exceeding 15 percent of the deposits may be invested in preferred and common stock, including shares of investment trusts.
VI. Unless the guaranty fund of a bank is full and unimpaired, and the value of its assets as determined by the commissioner shall exceed the amount of the deposits by at least 5 percent, it shall be unlawful for it to invest in any preferred or common stocks, including shares of investment trusts, without the written permission of the commissioner.
VII. Whenever in the opinion of the commissioner the condition of any bank is such that the commissioner deems it unwise for it to invest in any preferred or common stocks, including shares of investment trusts, he may by written order forbid such bank to make such investment, and said bank shall not thereafter make such investment until such order shall be revoked in writing.
VIII. No investment shall be made which, when added to investments of the same category then held, shall cause the investments in that category to exceed the percentages specified therein.
IX. The special deposits or guaranty fund of a guaranty savings bank shall not be included in the amount of deposits on which the percentage of any investment is reckoned.
X. Not exceeding 5 percent of the capital funds shall be invested in capital debentures.
XI. In determining whether an investment complies with the limitations imposed by this section, the applicable limitation shall be applied to the condition of the savings bank or savings department at the time of making such investment.
Source. 1921, 73:2-7. PL 262:3, 5, 8, 13. 1927, 89:1, 4, 6. 1929, 122:1-5, 10, 23. 1933, 67:5. 1941, 109:1. RL 310:3, 5, 8, 13. 1953, 195:1, par. 3. RSA 387:3. 1955, 214:18. 1959, 109:4; 229:1. 1961, 248:9. 1963, 326:5. 1967, 234:2, 3. 1969, 412:1. 1971, 537:3. 1973, 251:1. 1977, 244:2; 102:1. 1979, 300:3. 1983, 369:4. 1998, 139:14. 1999, 16:2, eff. June 26, 1999.