Page:United States Statutes at Large Volume 88 Part 1.djvu/760

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PUBLIC LAW 93-383-AUG. 22, 1974 ADVANCES FROM A STATE CHARTERED CENTRAL RESERVE I N C L U D I N G MORTGAGE F I N A N C E AGENCIES

Ante,

p. 715.

[88 STAT. INSTITUTION

SEC. 706. Section 5(c) of the Home Owners' Loan Act of 1933 (12 U.S.C. 1464(c)), as amended by sections 702 and 704 of this Act, is amended by adding at the end thereof the following new paragraph: "Subject to regulation by the Board but without regard to any other provision of this subsection, any such association whose general reserves, surplus, and undivided profits aggregate a sum in excess of 5 per centum of its withdrawable accounts is authorized to borrow funds from a State mortgage finance agency of the State in which the head ofSce of such association is situated to the same extent as State law authorizes a savings and loan association organized under the laws of such State to borrow from the State mortgage finance agency, except that such an association may not make any loan of such funds at an interest rate which exceeds by more than 1% per centum per annum the interest rate paid to the State mortgage finance agency on the obligations issued to obtain the funds so borrowed." PART B — N A T I O N A L BANKS REAL E S T A T E LOANS BY N A T I O N A L B A N K S

S E C 711. Section 24 of the Federal Reserve Act (12 U.S.C. 371) is amended to read as follows: "REAL ESTATE LOANS BY NATIONAL BANKS

"SEC. 24 (a)(1) Any national banking association may make real estate loans, secured by liens upon unimproved real estate, upon improved real estate, including improved farmland and improved business and residential properties, and upon real estate to be improved by a building or buildings to be constructed or in the process of construction, in an amount which when added to the amount unpaid upon prior mortgages, liens, encumbrances, if any, upon such real estate does not exceed the respective proportions of appraised value as provided in this section. A loan secured by real estate within the meaning of this section shall be in the form of an obligation or obligations secured by a mortgage, trust deed, or other instrument, which shall constitute a lien on real estate in fee or, under such rules and regulations as may be prescribed by the Comptroller of the Currency, on a leasehold under a lease which does not expire for at least ten years beyond the maturity date of the loan, and any national banking association may purchase or sell any obligations so secured in whole or in part. The amount of any such loan hereafter made shall not exceed 66% per centum of the appraised value if such real estate is unimproved, 75 per centum of the appraised value if such real estate is improved by offsite improvements such as streets, water, sewers, or other utilities, 75 per centum of the appraised value if such real estate is in the process of being improved by a building or buildings to be constructed or in the process of construction, or 90 per centum of the appraised value if such real estate is improved by a building or buildings. If any such loan exceeds 75 per centum of the appraised value of the real estate or if the real estate is improved with a one- to fourfamily dwelling, installment payments shall be required which are sufficient to amortize the entire principal of the loan within a period of not more than thirty years. "(2) The limitations and restrictions set forth in paragraph (1) shall not prevent the renewal or extension of loans heretofore made and shall not apply to real estate loans (A) which are insured under

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