Section 58-10-38 - Participation with others in real estate loans.
58-10-38. Participation with others in real estate loans.
A. Subject to the requirements of any regulations of the supervisor, every association may:
(1) participate with other lenders in real estate loans of any type that the association could originate;
(2) sell, but only without recourse, any real estate loan it holds or any participating interest therein; and
(3) service any real estate loans sold by it.
B. No association shall participate in the making of a loan pursuant to the approval granted in this section or purchase a participation in a loan beyond the association's regular lending area pursuant to this approval if the resulting aggregate amount of the institution's investments made pursuant to this approval would exceed forty percent of the association's assets. As used in this subsection, "loan" and "investments" do not include or apply to any loan as to which the institution has, with respect to such loan or its participation therein, the benefit of any insurance or guaranty or commitment for insurance or guaranty under any law of the United States.