Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. The third paragraph of section 7 of chapter 45 of the acts of 1932, as most recently amended by section 2 of chapter 244 of the acts of 1986, is hereby further amended by striking out the first sentence and inserting in place thereof the following sentence:- The resources of the central bank shall be invested only in one or another of the following: (a) obligations of the United States; (b) except as otherwise provided herein, federal agency obligations, referred to in section forty-two of chapter one hundred and sixty-eight of the General Laws, in effect on June thirtieth, nineteen hundred and eighty-three, and included on the list of investments pursuant to section fifteen A of chapter one hundred and sixty-seven of the General Laws maturing not more than five years from the date of acquisition thereof by the central bank; (c) obligations of the Government National Mortgage Association; (d) obligations of the commonwealth; (e) loans to member banks under conditions herein provided; (f) federal funds and repurchase agreements secured by United States treasury obligations and federal agency obligations which have unexpired terms of five years or less with a banking corporation in the common stock of which a cooperative bank may invest pursuant to paragraph 1 of section forty-seven of chapter one hundred and sixty-eight of the General Laws in effect on June thirtieth, nineteen hundred and eighty-three, and included on the list of investments pursuant to section fifteen A of chapter one hundred and sixty-seven of the General Laws; provided, however, that such banking corporation has a combined total of capital stock, surplus, undivided profits and reserves for contingencies equal to at least fifteen million dollars and total assets of one hundred and fifty million dollars and also equal to at least six percent of its aggregate deposit liability at the end of the calendar year immediately preceding the date of investment.

SECTION 2. The first paragraph of section 3 of chapter 73 of the acts of 1934, as appearing in section 91 of chapter 371 of the acts of 1983, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- Except as provided in this act, said fund may be invested by the corporation only in the cash, securities or other property referred to in clauses (a), (b), (c) and (d) of section twenty-two of chapter one hundred and seventy of the General Laws or in any of the federal agency obligations referred to in section forty-two of chapter one hundred and sixty-eight of the General Laws in effect on June thirtieth, nineteen hundred and eighty-three, and included on the list of investments pursuant to section fifteen A of chapter one hundred and sixty-seven of the General Laws, or in stock of the Federal National Mortgage Association referred to in said section forty-two, or obligations of the Government National Mortgage Association, or federal funds and repurchase agreements secured by the United States treasury obligations and federal agency obligations which have unexpired terms of five years or less with a banking corporation in the common stock of which a cooperative bank may invest pursuant to paragraph 1 of section forty-seven of said chapter one hundred and sixty-eight in effect on June thirtieth, nineteen hundred and eighty-three, and included on the list of investments pursuant to section fifteen A of chapter one hundred and sixty-seven of the General Laws; provided, however, that such banking corporation has a combined total of capital stock, surplus, undivided profits and reserves for contingencies equal to at least fifteen million dollars and total assets of one hundred and fifty million dollars and also equal to at least six percent of its aggregate deposit liability at the end of the calendar year immediately preceding the date of investment.