(1) As a rule, the investment of money held in trust for a ward laid down in section 1806 is to occur only
1. in debts for which there is a secure mortgage of a plot of land within the territory of Germany, or in secure land charges or annuity land charges on plots of land within the territory of Germany;
2. in securitised debts of the Federal Government or a Land and in debts that are entered in the Federal Debt Register or Land Debt Register of a Land;
3. in securitised debts whose interest is guaranteed by the Federal Government or by a Land;
4. in securities, in particular debenture bonds, and in securitised debts of all kinds of a domestic municipal corporation or the credit institution of such a corporation, to the extent that the securities or the debt have been declared by the Federal Government with the approval of the Bundesrat to be suitable for the investment of money held in trust for a ward;
5. with a domestic public savings bank if it has been declared by the competent public authority of the Land in which it has its seat suitable for the investment of money held in trust for a ward, or with another credit institution which belongs to an institution furnishing security that is sufficient for the investment.
(2) The Land legislation may lay down, for the plots of land situated within its territorial extent, the basic principles under which the security of a mortgage, a land charge or an annuity land charge is to be determined.