(1) A savings association may invest its assets in a manner not expressly prohibited by law if such investments are made in the exercise of the judgment and care under the circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital. An association shall not invest in the voting common stock of a corporation unless the association acquires a majority of the shares of the voting stock of the corporation.
(2) Investments held at any one time under this section shall not exceed in the aggregate an amount equal to 50 percent of the net worth accounts of the association on its last monthly closing date. An association is not required to divest itself of any investments made under this section if the investments met the requirements of this section at the time they were made.
(3) If the Director of the Department of Consumer and Business Services has reason to believe that loans or other investments made pursuant to this section are not prudent, proper or sound investments or are not, directly or indirectly, yielding an income or benefit, the director may direct the association to report to the director under oath the amount and nature of such loans or investments and any security therefor, their market value and other pertinent information. If the director thereafter determines that any such investment is not prudent, proper or sound, the director may issue an order directing the association to dispose of such investment within a reasonable time as designated by the director. [Formerly 722.497; 1979 c.863 §7]
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