Sec. 8.5. (a) A savings bank may not purchase for its own account any bond, note, or other evidence of indebtedness that is commonly designated as a security that is speculative in character or that has speculative characteristics. For the purposes of this subsection, a security is speculative or has speculative characteristics if at the time of purchase the security: (1) is rated below the first four (4) rating classes by a generally recognized security rating service; (2) is in default; or (3) is otherwise considered speculative by the director. (b) A savings bank may purchase for its own account a security that is not rated by a generally recognized security rating service if: (1) the savings bank at the time of purchase obtains financial information that is adequate to document the investment quality of the security; and (2) the security is not otherwise considered speculative by the director.
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