§ 23-38-210 - Loans and investments generally.
23-38-210. Loans and investments generally.
(a) (1) Loans made by a building and loan association operating under this act shall be made to its members or certificate holders, accompanied by a transfer and pledge of shares or units issued by the association or secured by a mortgage or deed of trust on improved real estate which is unencumbered, except for prior liens owned by the association and taxes and assessment liens for improvements not yet due.
(2) The association shall be empowered to make such other loans as are authorized by the Federal Home Loan Bank or by the Federal Savings and Loan Insurance Corporation.
(3) Loans may also be made to members or certificate holders upon pledge, assignment, and delivery to the association, but the loan shall not exceed the withdrawal value of the shares, stock, or certificate so pledged.
(b) (1) The board of directors of any association may invest funds in the treasury, in excess of the demands of members or certificate holders, in the securities of other Arkansas building and loan associations or in the obligations of the State of Arkansas or of the federal government or in loans to nonmembers on securities which the board of directors may approve. Loans to nonmembers shall not at any time exceed fifteen percent (15%) of the assets of the association.
(2) The board of directors of any association may invest excess funds in loans and advances of credit insured pursuant to the provisions of Title I of the National Housing Act and the amendments thereto.