Montana Attorney General Opinion 15-302

Opinion No. 302 Buihling and Loan Associations-In- vestment of Assets--Federal Home Loan Corporation Bonds. HET .. D: A building and loan associa- tion, upon the approval of the Super- intendent of Banks, may im'est not to exceed 10% of its assets in bonds of the Federal Home Owners' Loan Cor- lloration. August 12, 1933. You have submitted to this office a question whether or not a building antI loan association may invest a part of its money in bonds and securi ties issued Ilv the Federal Home Owners' Loan c'orporation. Chapter 11, Laws of 1933, Section 1. provides for the amendment of Section 12, Chapter 57, Laws of 1927. Subsec- tion c of Subdivision 15, of said Sec- tion 12, as amended, permits a build- ing and loan association to invest the money of the association in "(c) Not to exceed ten per eent of the association assets in such other bonds and securi- ties as may be approved by tbe Super- intendent of Banks." It is my opinion that this provision last quoted permits a building and loan association, upon the approval of the Superintendent of Banks, to invest not to exceed ten per cent of the associa- tion assets in bonds and securities of the Federal Home Owners' Loan Cor- pOl·ation. (Note: See Opinion No. 524, this vol- ume. The 10% restriction is not re- moved by Chapter 5, Laws of 1933-34.)