§ 54C-121. Loans.
Article 7.
Loans and Investments.
§ 54C‑121. Loans.
(a) A savings bank mayloan funds as follows:
(1) On the security ofdeposit accounts, but no loan shall exceed the withdrawal value of the pledgeddeposit account.
(2) On the security ofreal property:
a. Of a value,determined in accordance with this Chapter and any appraisal rules as theCommissioner of Banks may adopt sufficient to provide good and ample securityfor the loan;
b. With a fee simpletitle or a leasehold title of no less duration than 10 years beyond thematurity of the loan;
c. With the titleestablished by any evidence of title as is consistent with sound lendingpractices; and
d. With the securityinterest in such real estate evidenced by an appropriate written instrument andthe loan evidenced by a note, bond, or similar written instrument. A loan onthe security of the whole of the beneficial interest in a land trust satisfiesthe requirements of this sub‑subdivision if the title to the land is heldby a corporate trustee and if the real estate held in the land trust meets theother requirements of this subdivision.
(3) For the purpose ofrepair, improvement, rehabilitation, furnishing, or equipment of real estate.
(4) For the purpose offinancing or refinancing an existing ownership interest, in certificates ofstock, certificates of beneficial interest, or other evidence of an ownershipinterest in, and a proprietary lease from, a corporation, trust or partnershipformed for the purpose of the cooperative ownership of real estate, secured bythe assignment or transfer of the certificates or other evidence of ownershipof the borrower.
(5) For the purchase ofloans that, at the time of purchase, the savings bank could make in accordancewith this Chapter.
(6) For the purchase ofinstallment contracts for the sale of real estate, and title thereto that issubject to the contract, but in each instance only if the savings bank, at thetime of purchase, could make a mortgage loan of the same amount and for thesame length of time on the security of the real estate.
(7) For the purchase ofloans guaranteed or insured, wholly or in part, by the United States or any ofits instrumentalities.
(8) For secured orunsecured financing for business, corporate, personal, family, or householdpurposes, or for secured or unsecured loans for agricultural or commercialpurposes, subject to any rules as the Commissioner of Banks may adopt.
(9) For the purpose ofmobile home financing.
(10) For loans secured byno more that ninety percent (90%) of the cash surrender value of any lifeinsurance policy.
(11) For loans on anycollateral that would be a legal investment if made by the savings bank underthis Chapter.
(b) Notwithstanding anyprovision of this Chapter to the contrary, a savings bank may make any loanthat the savings bank could make if it were incorporated and operating as afederal association or as a State or national bank. (1991, c. 680, s. 1; 2001‑193,s. 16.)