(a) A corporate fiduciary may not purchase for its own account any bond, note, or other evidence of indebtedness that is commonly designated as a security that is speculative in character or that has speculative characteristics. For the purposes of this subsection, a security is speculative or has speculative characteristics if at the time of purchase the security:(1) is rated below the first four (4) rating classes by a generally recognized security rating service;(2) is in default; or(3) is otherwise considered speculative by the director.(b) A corporate fiduciary may purchase for its own account a security that is not rated by a generally recognized security rating service if:(1) the corporate fiduciary at the time of purchase obtains financial information that is adequate to document the investment quality of the security; and(2) the security is not otherwise considered speculative by the director.As added by P.L.176-1996, SEC.32. Amended by P.L.89-2011, SEC.72.
Indiana Legal Code