Regulatory AlertsSBD Opinion No. 89-1 Bank Trust Department Investment in Repurchase-Reverse Agreements of U.S. Government Securities
The Alabama State Banking Department issued Opinion No. 89-1 to authorize state-chartered bank trust departments to invest in repurchase and reverse repurchase agreements involving U.S. government securities. This permission is granted provided that the agreements constitute bona fide purchases and sales where the purchaser obtains a perfected security interest and takes possession of identifiable securities. Additionally, the investment must be explicitly authorized by the governing fiduciary instrument if one exists.
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