Montana Attorney General Opinion 16-117

Opinion No. 117. Banks and Banking-Investments -National Housing Act. HELD: Corporations, banks and other financial institutions named, have power, under section 1, Chapter 8, Laws of 1935, to invest in bonds and notes secured by mortgage, where such bonds and notes are insured. June 14, 1935. Mr. Barclay Craighead State Director Federal Housing Administration Helena, Montana You have submitted the question whether the provisions of Section 1, OPINIONS OF THE ATTORNEY GENERAL 117 in Chapter 8. Laws of 1935. to the effect that certain institutions therein named. to-wit: corporations. banks. trust companies. insurance companies. investment companies and other fi- nancial institutions may "Make such loans secured by real estate as are insured. or under a commitment to insure. pursuant to Title II of the 'National Housing Act· ... is broad enough to permit such insti- tutions to invest in one or more bonds or notes secured by mortgage so in- sured. Since the security is of the same character whether the institutions in question take a note secured by mort- gage. or one or more bonds or notes secured by mortgage and both are in- sured. I am inclined to the opinion that the question should be answered in the affirmative.