2.59.1601    U.S. TREASURY AND U.S. GOVERNMENT AGENCY ISSUES

(1) There is no dollar limit on a bank's investment in the following U.S. treasury securities:

(a) bonds;

(b) notes; or

(c) bills.

(2) There is no dollar limit on a bank's investment in U.S. treasury bonds and notes in the form of separate trading of registered interest and principal of securities (STRIPS) .

(3) There is no dollar limit on a bank's investment in the following U.S. government agency ordinary debt issues:

(a) farm credit system (FCS) :

(i) consolidated FCS bonds;

(ii) federal land bank bonds (FLB) ;

(iii) federal intermediate credit bank bonds (FICB) ;

(iv) banks for cooperatives bonds (BC) ; and

(v) federal agricultural mortgage corporation (FAMC) ;

(b) farmers home administration (FmHA) ;

(c) federal housing administration (FHA) ;

(d) federal home loan banks (FHLB) ;

(e) federal home loan mortgage corporation (FHLMC) ;

(f) federal national mortgage association (FNMA) ;

(g) student loan marketing association (SLMA) ; and

(h) United States postal service (USPS) .

(4) There is no dollar limit on a bank's investment in the following U.S. government agency mortgage-backed securities (MBS) , collateralized mortgage obligations (CMOs) and real estate mortgage investment conduits (REMICs) :

(a) instruments issued by the federal home loan mortgage association (FHLMC) ;

(b) instruments issued by the federal national mortgage association (FNMA) ;

(c) instruments issued by the government national mortgage association (GNMA) ;

(d) instruments issued by the federal agricultural mortgage corporation (FAMC) ;

(e) FHLMC MBS pass through securities (PCs) ;

(f) GNMA I, single issuer pass through PCs; and

(g) GNMA II, single and multiple issuer pass through PCs.

History: Sec. 32-1-433, MCA; IMP, Sec. 32-1-424, 32-1-433, MCA; NEW, 2002 MAR p. 166, Eff. 2/1/02.