23 CAR § 320-801. Investment, corporate debt obligations

(a) A bank may invest in debt securities, not in the purchase of stock, with certain exceptions. (b) As to convertible debentures, if the securities are: (1) Convertible into common stock at the option of the issuer, the bank may not purchase them; or (2) Convertible at the option of the holder, the bank may purchase them but must write down the cost to an amount which equals the investment value of the security determined without assigning any value to the conversion feature.