Sec. 1.4. Investments in the National Corporation for Housing Partnerships and the National Housing Partnership

A State bank inquired whether it would be permitted to invest in:

(a) the common stock of the National Corporation for Housing Partnerships (the corporation) and (b) a limited partnership interest in the National Housing Partnership (the partnership)—both the corporation and the partnership to be formed pursuant to the Federal “Housing and Urban Development Act of 1968”. The bank also asked what procedures it need follow in order to make such investments.

The department responded that each such investment was permissible provided that the bank first obtain Banking Board approval. It was noted that approval for investment in the common stock of the corporation is required by section 97(5) of the Banking Law and that approval for investment in real estate through the partnership vehicle is required by section 98(1)(d).

The State bank was further advised that a single letter application would suffice and that it would be unnecessary for the applicant to do more than forward a copy of the prospectus and recite the dollar amount which it intended to invest in each entity.

DATED: March 27, 1970