Purchase of speculative securities or securities not rated by a generally recognized security rating service

Ind. Code § 28-14-5-6.5
in effect
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Sec. 6.5. (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.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/28Fetched: 10/17/2026