(1) Banks may invest up to 20% of their capital and surplus, per issuer, in corporate bonds.

(2) These bonds must be investment grade, i.e., rated in one of the four highest grades by a recognized national investment rating organization.   Other rating services may be used if the graduations are equivalent to those above, and the rating services are identified by the bank's investment policy.   Corporate bonds should be reviewed as necessary to assure the bank's board of directors that bond quality has not fallen below investment grade.