Texas Finance Code - Section 34.104. Mutual Funds
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§ 34.104. MUTUAL FUNDS. (a) A state bank may invest for
its own account in equity securities of an investment company
registered under the Investment Company Act of 1940 (15 U.S.C.
Section 80a-1 et seq.) and the Securities Act of 1933 (15 U.S.C.
Section 77a et seq.) if the portfolio of the investment company
consists wholly of investments in which the bank could invest
directly for its own account.
(b) If the portfolio of an investment company described by
Subsection (a) consists wholly of investments in which the bank
could invest directly without limitation under Section 34.101(e),
the bank may invest in the investment company without limitation.
(c) The bank may invest not more than an amount equal to 15
percent of the bank's capital and certified surplus in an
investment company described by Subsection (a) the portfolio of
which contains an investment or obligation that is subject to the
limitations of Section 34.101(d) or 34.201(a).
(d) A state bank that invests in an investment company as
provided by Subsection (c) shall periodically determine that its
pro rata share of any security in the portfolio of the investment
company combined with the bank's pro rata share of that security
held by all other investment companies in which the bank has
invested and with the bank's own direct investment and loan
holdings is not in excess of applicable investment and lending
limitations.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 33.211 34.001 34.002 34.003 34.101 34.102 34.103 34.104 34.105 34.106 34.107 34.201 34.202 34.203 34.204
Last modified: August 10, 2007
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