Minnesota Administrative Rules

2675.1110 ELIGIBLE SECURITIES.

An obligation of indebtedness which may be purchased for its own account by a state bank, in order to come within the classification of eligible securities within the meaning of this part, must be a marketable obligation. It must be salable under ordinary circumstances with reasonable promptness at a fair value; and with respect to the particular security, there must be present one or more of the following characteristics:

A.

a public distribution of the securities must have been provided for or made in a manner to protect or insure the marketability of the issue; or

B.

other existing securities of the obligor must have such a public distribution as to protect or insure the marketability of the issue under consideration; or

C.

in the case of eligible securities for which a public distribution as set forth in item A or B cannot be so provided, or so made, and which are issued by established commercial or industrial businesses or enterprises, that can demonstrate the ability to service such securities, the debt evidenced thereby must mature not later than 20 years after the date of issuance of the security and must be of such sound value or so secured as reasonably to assure its payments.

Statutory Authority:

MS s 46.01

History:

9 SR 1689

Published Electronically:

September 14, 2007