Pennsylvania Statutes Title 7 P.S. Banks and Banking § 6020-162. Securities and obligations

(a) In bonds or other interest-bearing obligations of the United States, or those for the payment of the principal and interest on which the faith and credit of the United States is pledged,

(b) In bonds, debentures and other obligations of the Federal Home Loan Banks issued under the provisions of the Federal Home Loan Bank Act,  1

(c) In bonds or interest-bearing debentures issued by the Federal Savings and Loan Insurance Corporation under the provisions of Title IV of the National Housing Act,  2

(d) In bonds or other interest-bearing obligations of the Commonwealth of Pennsylvania, or those for the payment of principal and interest on which the faith and credit of this Commonwealth is pledged,

(e) In obligations issued by the Federal National Mortgage Association under the provisions of the National Housing Act, its amendments and supplements, but the aggregate amount of all such investments held by an association at any one time shall not exceed five percent of its savings accounts,

(f) In stock of the Federal National Mortgage Association acquired by an association through making nonrefundable capital contributions in connection with the sale of mortgages to the Federal National Mortgage Association,

(g) In demand, time, or savings deposits, shares or accounts or other obligations of any financial institution, the accounts of which are insured by a Federal agency,

(h) In shares, bonds or notes of any State or regional business development credit corporation formed under the laws of this Commonwealth, or in bonds, notes or any other obligation authorized or permitted by the act of August 23, 1967 (P.L. 251),  3 known as the “Industrial Development Authority Law,”

(i) In bonds and notes of the Pennsylvania Housing Agency created by the “Housing Agency Law,”  4

(j) An insured association may invest in obligations in the form of a bond or other instruments secured by a first lien on improved real property located within the regular lending area of the association and within an urban renewal area as defined in subsection (a) of section 110 of the Housing Act of 1949 as amended.  5 No such investment shall be made if the total amount of all obligations issued on the security of the said first lien exceeds eighty percent of the fair market value of the security property, or if the obligations do not require repayment of the entire principal debt, together with interest, in substantially equal payments, at least annually, over a term of not more than thirty years. No investment shall be made under this subsection if the amount of such investment, plus all amounts outstanding in investments made in accordance with this subsection and in mortgages made under section 910 of this act  6 and investments in real estate made under section 923(c) of this act,  7 would aggregate a total in excess of five percent of the association's assets,

(k) In obligations of any county, city, borough, town, township, school district, institution district or other political subdivision of the Commonwealth of Pennsylvania having the power to levy taxes: Provided, That the faith and credit of such political subdivision is pledged for the payment of said obligations: And provided further, That at the date of the investment in such obligations such political subdivision is not in default in the payment of any part of the principal or interest owing by it upon any part of its funded indebtedness,

(l) In obligations of a Pennsylvania municipality authority issued in accordance with applicable law, provided, however,

(m) In bonds or other interest-bearing obligations of The General State Authority,

(n) In capital stock obligations or other securities of any service corporation if the entire capital stock of such corporation is available for purchase only by savings associations and savings banks organized and existing under the laws of the Commonwealth of Pennsylvania, by Federal savings and loan associations having their home offices in the Commonwealth of Pennsylvania, by regional thrift institutions, as that term is defined in section 114,  8 and by foreign thrift institutions, as that term is defined in section 114. The department shall have the right to define service corporations and the activities thereof. An association may make investments in service corporations up to three percent of its assets plus such additional percentage of assets as the department may by regulation authorize,

(o) In obligations issued or guaranteed by the International Bank for Reconstruction and Development or by the Inter-American Development Bank, or in loans in Latin American countries guaranteed by the United States (acting through AID) under subsection 224  9 of the Foreign Assistance Act of 1961, as amended,

(p) In bankers' acceptances and bills of exchange eligible for purchase in the open market by a Federal Reserve Bank which have been accepted by a member of a Federal Reserve Bank subject to a limit for all acceptances by one acceptor held at any time of twenty-five percent of the capital and surplus of such acceptor and to a limit to the aggregate of all such acceptances held at any time of five percent of the assets of the association,

(q) In such obligations of any corporation organized or caused to be organized by the United States of America or the Commonwealth of Pennsylvania as the department may by regulation authorize,

(r) An association may invest its assets in time deposits of the Bank for Savings and Loan Associations, Chicago, Illinois.

(s) With the prior approval of the department, in up to one hundred percent of the stock of a bank, a bank and trust company, a trust company, a bank holding company, a savings bank, a regional thrift institution, a regional thrift institution holding company or a foreign thrift institution or a foreign thrift institution holding company, as those terms are defined in the Banking Code of 1965 and in section 114.