Effective 28 Aug 1978

371.250. Corporations and banks may own stock or securities of company, securities exempt. — Notwithstanding any rule at common law or any provision of any law or any provision in their respective charters, agreements of association, articles of organization, certificates of incorporation, or trust indentures:

(1) All domestic corporations organized for the purpose of carrying on business within this state, including, without implied limitation, any railroad or transportation corporation, and all trusts, are authorized to acquire, purchase, hold, sell, assign, transfer, mortgage, pledge or otherwise dispose of any bonds, securities, or other evidences of indebtedness created by, or the shares of the capital stock of any corporation established by this chapter and, while owners of said stock, to exercise all the rights, powers and privileges of ownership, including the right to vote thereon, all without the approval of any regulatory authority of this state;

(2) All banking organizations are hereby authorized to become members of any corporation established by this chapter and to make loans to any such corporation as provided herein;

(3) A banking organization which does not become a member of a corporation established by this chapter shall not acquire any shares of the capital stock of such corporation;

(4) Each banking organization which becomes a member of a corporation established by this chapter is authorized to acquire, purchase, hold, sell, assign, transfer, mortgage, pledge, or otherwise dispose of any bonds, securities or other evidences of indebtedness issued by such corporation or the shares of its capital stock and while owners of said stock to exercise all the rights, powers and privileges of ownership, including the right to vote thereon, all without the approval of any regulatory authority of this state; except that the amount of capital stock of such corporation which may be acquired by any member pursuant to the authority granted herein shall not exceed ten percent of the loan limit of such member as provided by law. The amount of capital stock of such corporation which any member is authorized to acquire pursuant to the authority granted herein shall be in addition to the amount of capital stock in corporations which such member may otherwise be authorized to acquire;

(5) The bonds, securities or other evidences of indebtedness, and shares of capital stock of a corporation established pursuant to this chapter shall be exempt from the provisions of chapter 409 and all rules promulgated thereunder.

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(L. 1961 p. 157 § 24, A.L. 1963 p. 478, A.L. 1978 S.B. 657)