Ga. Comp. R. & Regs. R. 80-1-4-.02 - Securities Underwriting
(1) A bank with statutory capital base of
less than $20,000,000:
(a) Shall not
underwrite or otherwise participate as principal in the marketing of securities
except to the extent authorized by law or regulation and except for the account
of and upon specific instructions from its customer.
(b) Such bank may, with the permission of the
department, underwrite or otherwise participate in the marketing of obligations
(including limited obligation bonds, revenue bonds, and obligations that
satisfy the requirements of Section
142(b)(1) of the Internal
Revenue Code of 1986) issued by or on behalf of any state or political
subdivision of a state, including any municipal corporate instrumentality of
one or more states, or any public agency or authority of any state or political
subdivision of a state ("certain municipal bonds").
(2) A bank with a statutory capital based of
$20,000,000 or greater:
(a) May underwrite or
otherwise participate in the marketing of any securities which such banks could
purchase for their own account, in addition to the certain municipal bonds
described in subsection (1)(b); but
(b) May not underwrite open-end funds
described in section (3) of Rule
80-1-4-.01.
(3) All underwriting or marketing of
securities shall be subject to the following conditions:
(a) Accounting and other records of trading
in such securities are maintained separate and apart from accounting and other
records relating to purchases of securities for the bank's own
account;
(b) The board of directors
of the bank must adopt operating policies which are reviewed at least anually
regarding the types and quality of securities to be traded, holding periods for
securities in inventory, limitations on the amount of securities to be carried
in the name of any single obligor, and guidelines relative to disposition of
securities subject to adverse market changes; and
(c) Credit memoranda or prospectuses and
independent audit reports covering the three (3) years immediately preceding
the date of the most recent underwriting are maintained.
(4) Underwriting and marketing of securities
are activities also subject to federal law and regulation.
Notes
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