Page:United States Statutes at Large Volume 92 Part 3.djvu/1085

 PUBLIC LAW 95-630—NOV. 10, 1978

92 STAT. 3717

" (F) CONSTRUCTION LOANS, W I T H OR WITHOUT SECURITY.—

Subject to the area restriction of subparagraph (1)(B), investments not exceeding the greater of (A) the sum of its surplus, undivided profits, and reserves or (B) 5 p e r centum of the assets of the association, in loans the principal purpose of which is to provide financing with respect to what is or is expected to become primarily residential real estate where (i) the association relies substantially for repayment on the borrower's general credit standing and forecast of income, with or without other security, o r (ii) the association relies on other assurances for repayment, including but not limited to a g u a r a n t y or similar obligation of a t h i r d party, and, in either case described in clause (i) or ( i i), regardless of whether or not the association takes security; and investments under this subsection shall not be included in any percentage of assets or other percentage referred to in this subsection. "(4)

OTHER LOANS AND IN^^ESTMENTS.—The following



addi-

tional loans and other investments to the extent authorized below: "(A)

B U S I N E S S DEVELOPMENT CREDIT CORPORATIONS.—An

association whose general reserves, surplus and undivided profits aggregate a sum in excess of 5 per centum of its withdrawable accounts is authorized to 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 and loan associations chartered by such State are authorized, b u t the aggregate amount of such investments, loans, and commitments of any such association shall not exceed one-half of 1 p e r centum of the total outstanding loans of the association or $250,000, whichever is less. "(B)

SERVICE CORPORATIONS.—Investments in the capital

stock, obligations, or other securities of any corporation organized under the laws of the State in which the home office of the association is located, if the entire capital stock of such corporation is available for purchase only by savings and loan associations of that State and by Federal associations having their home offices therein, b u t no association may make any investment under this subparagraph if its aggregate outstanding investment under this subparagraph would exceed 1 p e r centum of the assets of the association. "(C)

FOREIGN ASSISTANCE, CERTAIN GUARANTEED LOANS.—

(i) Loans secured by mortgages as to which the association has the benefit of insurance under title X of the National Housing Act or of a commitment or agreement for such insurance, or (ii) acquire and hold investments in housing project loans having the benefit of any guaranty under section 221 of the Foreign Assistance Act of 1961 or loans having the bene- 22 USC 2181. fit of any guaranty under section 224 of such Act, or any 22 USC 2184. commitment or agreement with respect to such loans made pursuant to either of such sections and in the share capital and capital reserve of the Inter-American Savings and Loan Bank. T h i s authority extends to the acquisition, holding, and disposition of loans having the benefit of any guaranty under section 221 or 222 of such Act as hereafter amended or 22 USC 2181, 2182.

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