Corporate Debt Securities not of Investment Grade Law and Legal Definition

According to 12 CFR 362.10 [Title 12 -- Banks and Banking; Chapter III -- Federal Deposit Insurance Corporation; Subchapter B -- Regulations and Statements of General Policy; Part 362 -- Activities of Insured State Banks and Insured Savings Associations; Subpart C -- Activities of Insured State Savings Associations], corporate debt securities not of investment grade means “any corporate debt security that when acquired was not rated among the four highest rating categories by at least one nationally recognized statistical rating organization. The term shall not include any obligation issued or guaranteed by a corporation that may be held by a federal savings association without limitation as to percentage of assets under subparagraphs (D), (E), or (F) of section 5(c)(1) of Home Owners Loan Act (12 U.S.C. 1464(c)(1) (D), (E), (F)).”