INVESTMENTS 
With approval of the Act of February 25, 1925, the legal right of a 
national bank to engage in the business of buying and selling invest- 
ment securities, a right previously based on the original grant of 
authority to discount and negotiate “other evidences of debt” was 
confirmed, and the investments eligible for national bank operations 
were defined. The following excerpt from the act governs national 
bank dealings in investment securities: 
“***The business of buying and selling investment securities shall hereafter be 
limited to buying and selling without recourse marketable obligations 
evidencing indebtedness of any person, copartnership, association, or corpor- 
ation, in the form of bonds, notes and/or debentures, commonly known as 
investment securities,’ under such further definition of the term ‘in- 
vestment securities,” as may by regulation be prescribed by the Comp- 
troller of the Currency, and the total amount of such investment securities 
of any one obligor or maker held by such association shall at no time 
exceed 25 per centum of the amount of the capital stock of such association 
actually paid in and unimpaired and 25 per centum of its unimpaired 
surplus fund, but this limitation as to total amount shall not apply to 
obligations of the United States, or general obligations of any State or of any 
political subdivision thereof, or obligations issued under authority of the 
Federal Farm Loan Act.” 
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