1Investments by a state-chartered bank, association, savings bank or international agency in subsidiary corporations that do not conduct active operations directly with the public and that only hold assets the institution may acquire or invest in directly, except for other subsidiary organizations, shall not be limited. However, individual investments, loans or assets owned by such a subsidiary corporation, when combined with other investments, loans and assets of the same issuer, obligor, entity, person or source owned by the institution and its other subsidiary corporations, shall not exceed the applicable limitations of law on investments in or loans to the same issuer, obligor, entity, person or asset. To be eligible for the exemption of this rule, any such subsidiary corporation must be wholly owned by the state financial institution, except in the case of a subsidiary that qualifies as a real estate investment trust under the Internal Revenue Code of the United States of America, in which case the subsidiary may have such additional shareholders as are needed to qualify for such status, provided none of the additional shareholders has control of the subsidiary.
