Prohibited investments and prudential rules.

CFR · 2024-01-01 · US · Title 12

(a) (1) Instruments that provide an ownership interest in an entity, except for investments described in § 1265.3(e) and (f) of this chapter; (2) Instruments issued by non-United States entities, except United States branches and agency offices of foreign commercial banks; (3) Debt instruments that are not investment quality, except: (i) Investments described in § 1265.3(e) of this chapter; and (ii) Debt instruments that a Bank determined became less than investment quality because of developments or events that occurred after acquisition of the instrument by the Bank; (4) Whole mortgages or other whole loans, or interests in mortgages or loans, except: (i) Acquired member assets; (ii) Investments described in § 1265.3(e) of this chapter; (iii) Marketable direct obligations of state, local, or Tribal government units or agencies, that are investment quality, where the purchase of such obligations by the Bank provides to the issuer the customized terms, necessary liquidity, or favorable pricing required to generate needed funding for housing or community lending; (iv) Mortgage-backed securities, or asset-backed securities collateralized by manufactured housing loans or home equity loans, that meet the definition of the term “securities” under 15 U.S.C. 77b(a)(1) and are not otherwise prohibited under paragraphs (a)(5) through (a)(7) of this section; and (v) Loans held or acquired pursuant to section 12(b) of the Bank Act (12 U.S.C. 1432(b)). (5) Residual interest and interest

official document · source cfr-2024 · id 12:§ 1267.3