7-7-30. Investment in property used in conduct of business -- Investment in
manner not prohibited by law.
(1) An association may invest in such real property or interest therein as the directors may
deem necessary or convenient for the conduct of the business of the association, which for the
purposes of this chapter may include the stock of a wholly owned subsidiary corporation having
as its exclusive activity the ownership and management of such property or interests, but the
amount so invested shall not exceed 10% of the assets of the association, except that the
commissioner may authorize a greater amount to be so invested if he finds that the investments
promote the viability and stability of the associations of this state. An association may invest a
reasonable amount in property such as furniture, fixtures, and equipment for use in carrying on its
own business.
(2) Every association may invest its assets in a manner not expressly prohibited by law if
the investments are made in the exercise of the judgment and care under the circumstances then
prevailing which men of prudence, discretion, and intelligence exercise in the management of
their own affairs not in regard to speculation but in regard to the permanent disposition of their
funds, considering the probable income as well as the probable safety of their capital. The
aggregate of investments held under this subsection and not permitted by any other section of this
chapter may not exceed 5% of the assets of the association.
Amended by Chapter 8, 1983 General Session
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Last revised: Thursday, May 28, 2009