SECTION 3. Investments; classes of stocks

Notwithstanding any provision of this chapter or any other provision of law, any bank may invest in the following classes of stocks in accordance with the conditions, limitations and requirements prescribed herein:

1. Insurance Company Stocks—In the capital stock of any insurance company authorized to conduct fire and casualty business in the commonwealth subject to the following conditions.

No insurance stock shall be purchased if the cost thereof added to the cost of insurance stocks and bank stocks already owned exceeds 662/3 per cent of the total of the capital stock and surplus account for a stock corporation or the surplus account for a thrift institution.

2. Shares of Certain Bank Investment Funds—In the shares of beneficial interest of the Savings Bank Investment Fund and the Co-operative Bank Investment Fund; provided, however, that no such corporation shall invest in any such shares of any class representing a beneficial interest in any distinct investment fund consisting in whole or in part of equity securities (a) if the cost thereof added to the cost of such shares of an equity fund already owned shall exceed fifty per cent of the total of one capital stock and surplus account for a stock corporation or the surplus account for a thrift institution, or (b) if the cost thereof added to the amount already invested in such shares of such equity fund and in stocks shall exceed the total of such capital stock and surplus account for a stock corporation or surplus account for a thrift institution; and provided, further, that a corporation may invest in any such shares of any class representing a beneficial interest in any distinct investment fund which is not an equity fund to an amount in excess of one hundred per cent of the capital stock and surplus account of a stock corporation or to an amount in excess of one hundred per cent of the surplus account of a thrift institution except insofar as the commissioner may by regulation set limits and conditions on the amount which may be invested in such shares.

3. Utility Company Stocks—In the preferred and common stock of any company which, at the time of such investment, is incorporated under the laws of the United States or any state thereof, or the District of Columbia, and authorized to engage, and engaging, in the business of furnishing telephone service in the United States, or any gas, electric light or water company incorporated or doing business in the commonwealth and subject to the control and supervision thereof.

No such corporation shall invest in such preferred or common stocks if the cost thereof added to the cost of such preferred or common stocks already owned exceeds 35 per cent of the total of the capital stock and surplus account for a stock corporation or the surplus account of a thrift institution. No corporation shall invest more than.5 of 1 per cent of its deposits in the stock of any 1 such company.

4. Preferred and Common Corporate Stock—In the preferred and common stock of any corporation organized under the laws of the United States or any state and any association defined herein to mean an association the business of which is conducted or transacted by trustees under a written instrument or declaration of trust; provided, however, not more than four per cent of its deposits shall be invested in the stocks so authorized and provided, further, that in addition to such four per cent, an amount equivalent to one per cent of its deposits may be invested in stocks of Massachusetts corporations or companies with substantial employment in the commonwealth which have pledged to the commissioner that such monies will be used for further development within the commonwealth. No bank shall make an investment pursuant to this paragraph in any such corporation or association controlled by said bank. For the purposes of this paragraph a bank shall be deemed to control a corporation or association if: (1) the bank owns or controls twenty-five per cent or more of the voting stock of any such corporation or association; or (2) the bank, in any manner controls the election of a majority of the directors of any such corporation or association; or (3) twenty-five per cent or more of the vote or voting stock of any such corporation or association is held by trustees for the benefit of said bank.

5. Prudent Investments—In the shares of stock registered on a national securities exchange as provided in the Securities Exchange Act of 1934, 15 USC 78a or for which quotations are available through the National Association of Securities Dealers Automated Quotations System, or any comparable service designated by the commissioner; provided that not more than fifteen per cent of the assets of such corporation shall be invested pursuant to the provisions of this paragraph, and such investment shall be made in the exercise of the judgment and care consistent with the prudent man rule, so-called.