534.207 - COMMITMENT TO RESIDENTIAL LOANS.

        534.207  COMMITMENT TO RESIDENTIAL LOANS.         1.  Commitment.  As an annual average, based on monthly      computations, an association shall hold at least sixty percent of its      assets in the following types of assets:         a.  Loans secured by liens or claims on residential real      estate, participation interests in groups of loans secured by liens      or claims on residential real estate, securities that are secured by      groups of loans secured by liens or claims on residential real      estate, or property improvement loans for the making of improvements      upon residential real property, or a combination of these.         b.  Cash.         c.  Obligations of the United States or of a state or      political subdivision of a state, and stock or obligations of a      corporation which is an instrumentality of the United States or of a      state or political subdivision of a state, but not including      obligations the interest on which is excludable from gross income      under section 103 of the Internal Revenue Code.         d.  Certificates of deposit in, or obligations of, a      corporation organized under a state law which specifically authorizes      such corporation to insure the deposits or share accounts of member      associations.         e.  Loans secured by a deposit or share of a member.         f.  Property acquired through the liquidation of default      loans.         g.  Property used by the association in the conduct of its      business under this chapter.         For the purposes of this subsection, "residential real estate"      means real estate on which there is located, or within three years      will be located following the construction of improvements financed      by a real estate loan, a structure or structures designed or used      primarily to provide living accommodations for people, except      structures which are designed primarily to provide accommodations for      transients.         2.  Failure to meet commitment.  If, upon examination, the      superintendent of savings and loan associations determines that an      association has failed to meet the requirements of subsection 1 for      any two of its preceding five fiscal years, the association shall be      so notified in writing, with a copy of the notice to the      superintendent of banking, and the association shall within ninety      days following receipt of the notice do one of the following:         a.  Establish to the satisfaction of the superintendent that      at least sixty percent of the current amount of its assets are held      in the types of assets referred to in subsection 1.  If the      association subsequently fails to meet the requirements of subsection      1 during any one of the three fiscal years following the fiscal year      in which the second violation in five years occurred, then the      association shall within ninety days following receipt of a notice of      this violation take one of the actions specified in paragraph "b",      "c", "d", or "e".         b.  File a plan of merger to merge with another state      association whose assets are such that the two associations would      have met the requirements of subsection 1 on a consolidated basis      during at least four of the five preceding years.         c.  File a plan of merger with a federal association or a bank      under which the resulting organization is not a state association.         d.  File a plan of conversion to become a federal association      or a bank.         e.  File a plan of conversion that provides both for      conversion to a stock association and for the immediate conversion of      the resulting stock association to a bank.         3.  Failure to resolve problem.  If an association fails to      take one of the actions required by subsection 2, or fails to      complete the plan of merger or conversion within nine months after      receiving the notice specified in subsection 2, the superintendent      shall appoint a conservator to operate the association in conformance      with subsection 1 or a receiver to liquidate the association.  
         Section History: Early Form
         [C73, § 1185, 1186; C97, § 1898, 1899; S13, § 1898, 1899-a; C24,      27, 31, § 9329, 9340, 9341; C35, § 9329, 9330-e1, 9340, 9340-b1,      9341; C39, § 9329, 9330.1, 9340.01, 9340.04--9340.06, 9340.08,      9340.09, 9340.14; C46, 50, 54, 58, § 534.19, 534.21, 534.22,      534.25, 534.28--534.30, 534.32, 534.33, 534.38; C62, 66, 71, 73, 75,      77, 79, § 534.19, 534.21; S79, § 534.21; C81, § 534.19, 534.21; 82      Acts, ch 1253, § 21] 
         Section History: Recent Form
         C83, § 534.77         C85, § 534.207         87 Acts, ch 171, §33; 90 Acts, ch 1208, § 6