Sec. 1.193

1.194

1.195

Los Angeles County-West Covina Civic
Center Authority, Citrus District
Courthouse Revenue Bonds.

City of Downey Community Hospital
Authority.

Cudahy Civic Center Authority Rev-
enue Bonds.

1.196 Campbell County Utilities and Service Authority.

1.197 Urban Redevelopment Authority of Pittsburgh, Residential Land Reserve Fund Bonds.

1.198 Visalia Area Hospital Authority Revenue Bonds (California).

1.199 Upland Civic Center Building Authority Revenue Bonds (California). 1.200 Parking Authority of the City of Upland (California) Parking Revenue Bonds.

1.201 Bergen County Sewer Authority (New Jersey).

Center Authority Courthouse Revenue Bonds (California).

1.245 City

of Long Beach-Los Angeles County Civic Center Authority. 1.246 Farmers Home Administration farm loan notes sold in blocks.

1.247 Southeastern Pennsylvania Transportation Authority, Transportation Bonds (Delaware County Agreement).

1.248 Los Angeles County-San Dimas Civic Center Authority, San Dimas Library Building, Revenue Bonds.

1.249 Los Angeles County North Valley Building Corporation Leasehold Mortgage Bonds.

1.250 Los Angeles County Coroner's Building Corporation Leasehold Mortgage Bonds.

1.251 Commonwealth of Pennsylvania Tax Anticipation Notes (General FundMotor License Fund).

1.252 Los Angeles County-La Mirada Public Facilities Authority.

Vehicle Highway Fund Bonds.

North Dakota.

Sec.

1.283 Visalia Public Building Authority (California).

1.284 New York State Urban Development Corporation.

1.285 City of Santa Fe Springs Public Improvements Corporation Leasehold Mortgage Bonds (California). 1.286 Vermont Municipal Bond Bank. 1.287 Memphis and Shelby County Industrial Development Board, Tennessee (Internal Revenue Service Regional Center).

AUTHORITY: The provisions of this Part 1 issued under R.S. 324 et seq., as amended, Paragraph Seventh of R.S. 5136 as amended; 12 U.S.C. 1 et seq., 24, unless otherwise noted. § 1.1 Authority.

This part is issued by the Comptroller of the Currency under the general authority of the national banking laws, 12 U.S.C. 1 et seq., and under specific authority contained in paragraph Seventh of 12 U.S.C. 24. The Comptroller of the Currency is charged by the national banking laws with the execution of all laws of the United States relating to the organization, operation, regulation and supervision of national banks and in particular with the execution of 12 U.S.C. 24 which sets forth the corporate powers of national banks. This part interprets and applies paragraph Seventh of 12 U.S.C. 24 to provide for its due execution and for the proper regulation and supervision of the operations of national banks. Paragraph Seventh of 12 U.S.C. 24 also specifically provides for the Comptroller of the Currency to prescribe by regulation (a) limitations and restrictions on the purchase of investment securities by a national bank for its own account and (b) further definition of the term "investment securities."

[28 F.R. 9916, Sept. 12, 1963]

§ 1.2 Scope and application.

This part applies to the purchase, sale, dealing in, underwriting, and holding of investment securities by national banks, banks located in the District of Columbia, and by state banks which are members of the Federal Reserve System. It may also apply to a limited extent to others engaged in the banking business. The Comptroller of the Currency is charged by various provisions contained in Chapter 1 of Title 26 of the District of Columbia Code with the supervision of banks located in the District of Colum

bia. State banks which are members of the Federal Reserve System are, under 12 U.S.C. 335, subject to the same limitations and conditions with respect to the purchasing, selling, underwriting, and holding of investment securities and stock as are applicable in the case of national banks under paragraph Seventh of 12 U.S.C. 24. Dealers in securities are prohibited by 12 U.S.C. 378 from engaging in banking business. Section 378 specifically provides, however, that it does not prohibit national banks or state banks or trust companies (whether or not members of the Federal Reserve System) or other financial institutions or private bankers from dealing in, underwriting, purchasing and selling investment securities to the extent permitted to national banking associations by the provisions of 12 U.S.C. 24.

[28 F.R. 9916, Sept. 12, 1963]

(a) The term "bank" includes national banks, banks located in the District of Columbia, and state banks which are members of the Federal Reserve System.

(b) The term "investment security" means a marketable obligation in the form of a bond, note or debenture which is commonly regarded as an investment security. It does not include investments which are predominantly speculative in nature.

(c) The term "public security" means an obligation described in 12 U.S.C. 24 as not subject to the limitations and restrictions contained therein "as to dealing in, underwriting and purchasing for its own account, investment securities". Public securities include:

(1) Obligations of the United States; (2) General obligations of any State of the United States or of any political subdivision thereof;

(3) Other obligations listed in paragraph Seventh of 12 U.S.C. 24.

(d) The term "political subdivision of any state" includes a county, city, town or other municipal corporation, a public authority, and generally any publicly owned entity which is an instrumentality of the State or of a municipal corporation.

(e) The phrase "general obligation of any State or of any political subdivision thereof" means an obligation supported