A subsidiary of a bank or a nonbank subsidiary of a holding company may:

1. 1. Deal in and underwrite all obligations issued or guaranteed by or on behalf of a state or a political subdivision of a state or an agency or instrumentality of either a state or political subdivision.
2. 2. Organize, sponsor, operate and control an investment company, as defined in section 3 of the investment company act of 1940 (15 United States Code section 80a-3), and underwrite, deal in, sell and distribute, as principal or agent, or both, the securities of such an investment company.

3. 3. Deal in and underwrite:

   1. (a) Promissory notes secured by real estate mortgages.
   2. (b) Credit obligations secured by real or personal property or manufactured housing.
   3. (c) Participation interests in such notes and credit obligations.
   4. (d) Mortgage related payment bonds secured by such notes or participation interests.
4. 4. Underwrite, deal in, sell and distribute, as principal or agent, or both, commercial paper issued by any entity.