California Code, Financial Code - FIN § 1511

Section 1510 shall not apply to investments made pursuant to this section.  A bank may invest in shares of an investment company (1) registered with the Securities and Exchange Commission pursuant to the federal Investment Company Act of 1940 ( 15 U.S.C. Sec. 80a-1 et seq. ) and for which the shares are registered under the federal Securities Act of 1933 ( 15 U.S.C. Sec. 77a et seq. ), and (2) the portfolio of which consists solely of the following:

(a) Debt obligations in which a bank is permitted to invest without limitation pursuant to subdivision (a) , (b) , (c) , or (d) of Section 1510 and repurchase agreements fully collateralized by those obligations.

(b) Loans of federal funds and similar loans of unsecured day(s) funds, maturing in six months or less to institutions insured by the Federal Deposit Insurance Corporation Federal Funds.  Loans under this subdivision are limited to transactions described in subsection (a) or (b) of Section 32.102 of Title 12 of the Code of Federal Regulations involving investment companies in which the entire beneficial interest is held exclusively by depository institutions, as permitted by Section 204.123 of Title 12 of the Code of Federal Regulations .

(c) Cash or its equivalent.

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