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Statutory Investment

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Statutory investment
An investment that a trustee is authorized to make under state law.

Statutory Investment
Investments allowed for institutional investors under the legal and regulatory rules of the country in which they are made. Institutional investors, notably banks, handle funds on behalf of clients, who may or may not be interested in investing themselves. As a result, many institutional investors are restricted from making certain high-risk investments. In the case of bonds, statutory investments are called investment-grade. One may also refer to statutory investments as legal investments.

statutory investment


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In addition to the CRA revision, passing the amendment to national banks' statutory investment authority would also give banks an important tool to help foreclosure-plagued urban and suburban middle-income areas.
This is important because most statutory investment guidelines are stated in NAIC ratings.
State authority over solvency, based on statutory investment and risk-based capital requirements and financial examinations every three years unless financial strength justifies a deferment to five years.
 
 
 
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