Page:United States Statutes at Large Volume 103 Part 1.djvu/315

 PUBLIC LAW 101-73—AUG. 9, 1989 103 STAT. 287 "(C) INVESTMENTS IN PERSONAL PROPERTY.—Investments in tangible personal property, including, vehicles, manufac- tured homes, machmery, equipment, or furniture, for rental or sale. Investments under this subparagraph may not exceed 10 percent of the assets of the Federal savings association. -^ ni» "(D) (DoNSUMER LOANS AND CERTAIN SECURITIES. — A Fed- eral savings association may make loans for personal, family, or household purposes, including loans reasonably incident to providing such credit, and may invest in, sell, or hold commercial paper and corporate debt securities, as defined and approved by the Director. Loans and other, investments under this subparagraph may not exceed 30 percent of the assets of the Federal savings association. "(3) LOANS OR INVESTMENTS LIMITED TO 5 PERCENT OF ASSETS. — The following loans or investments are permitted, but not to exceed 5 percent of assets of a Federal savings association for each subparagraph: "(A) EDUCATION LOANS.— Loans made for the payment of educational expenses. "(B) COMMUNITY DEVELOPMENT INVESTMENTS. —Invest- Real property. S ments in real property and obligations secured by liens on real property located within a geographic area or neighbor- hood receiving concentrated development assistance by a local government under title I of the Housing and (Commu- nity Development Act of 1974. No investment under this subparagraph in such real property may exceed an aggre- gate of 2 percent of the assets of the Federal savings association. "(C) NONCONFORMING LOANS.— Loans upon the security of Real property. or respecting real property or interests therein used for primarily residential or farm purposes that do not comply with the limitations of this subsection. " (D) CONSTRUCTION LOANS WITHOUT SECURITY. — Loans— "(i) the principal purpose of which is to provide financing with respect to what is or is expected to become primarily residential real estate; and "(ii) with respect to which the association— "(I) relies substantially on the borrower's general credit standing and projected future income for repayment, without other security; or '(II) relies on other assurances for repayment, including a guarantee or similar obligation of a third party. The aggregate amount of such investments shall not exceed the greater of the Federal savings association's capital or 5 percent of its assets. "(4) OTHER LOANS AND INVESTMENTS. — The following addi- tional loans and other investments to the extent authorized below: " (A) BUSINESS DEVELOPMENT CREDIT CORPORATIONS.—A Federal savings association that is in compliance with the capital standards prescribed under subsection (t) may invest in, lend to, or to commit itself to lend to, any business development credit corporation incorporated in the State in which the home office of the association is located in the same manner and to the same extent as savings associa-

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