What asset purchases are prohibited by section 23B?

CFR · 2024-01-01 · US · Title 12

(a) (1) Under the instrument creating the fiduciary relationship; (2) By court order; or (3) By law of the jurisdiction governing the fiduciary relationship. (b) (2) Paragraph (b)(1) of this section does not apply if the purchase or acquisition of the security has been approved, before the security is initially offered for sale to the public, by a majority of the directors of the member bank based on a determination that the purchase is a sound investment for the member bank, or for the person on whose behalf the member bank is acting as fiduciary, as the case may be, irrespective of the fact that an affiliate of the member bank is a principal underwriter of the security. (3) The approval requirement of paragraph (b)(2) of this section may be met if: (i) A majority of the directors of the member bank approves standards for the member bank's acquisitions of securities described in paragraph (b)(1) of this section, based on the determination set forth in paragraph (b)(2) of this section; (ii) Each acquisition described in paragraph (b)(1) of this section meets the standards; and (iii) A majority of the directors of the member bank periodically reviews acquisitions described in paragraph (b)(1) of this section to ensure that they meet the standards and periodically reviews the standards to ensure that they continue to meet the criterion set forth in paragraph (b)(2) of this section. (4) A U.S. branch, agency, or commercial lending company of a foreign bank may comply with paragr

official document · source cfr-2024 · id 12:§ 223.53