Permissible Investments for Federal and State Savings Associations: Corporate Debt Securities (FDIC - Fed. Reg. Version)

This final rule amends FDIC regulations to prohibit any insured savings association from acquiring or retaining a corporate debt security unless it determines, prior to acquiring such security and periodically thereafter, that the issuer has adequate capacity to meet all financial commitments under the security for the projected life of the investment. The clarifying revision addresses ambiguities in the proposed rule and harmonizes the final rule with the final rule adopted by the OCC regarding permissible investments for national banks.

Effective Date: July 21, 2012

Cross-Reference(s): Federal Deposit Insurance Act Section 28(d); Dodd-Frank Act Sections 313 and 939(a).

View rule release in full here (links externally to GPO website).