Page:United States Statutes at Large Volume 92 Part 3.djvu/1086

 92 STAT. 3718

PUBLIC LAW 95-630—NOV. 10, 1978 extended, or of any commitment or agreement for any such guaranty. Investments under clause (i) of this subparagraph shall not be included in any percentage of assets or other percentage referred to in this section. Investments under clause (ii) of this subparagraph shall not exceed, in the case of any association, 1 p e r centum of the assets of such association. " (D) STATE AND LOCAL GOVERNMENT OBLIGATIONS.—An asso-

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ciation 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 obligations which constitute prudent investments, as defined by the Board, of its home State and political subdivisions thereof (including any agency, corporation, or instrumentality): Provided, That the proceeds of such obligations are to be used for rehabilitation, financing, or the construction of residential real estate: Arid -provided further, That the aggregate amount of all investments under this subparagraph shall not exceed the amount of the association's general reserves, surplus and undivided profits. " (5) CONVERTED STATE-CHARTERED ASSOCIATIONS.—Any associa-

"Residential mortgage.'

tion which is converted from a State-chartered institution may continue to make loans in the territory in which i t made loans while operating under State charter. " (6) DEFINITIONS.—As used in this section— " (A) the terms 'residential real property' or 'residential real estate' include leaseholds and mean homes (including condominiums and cooperatives except that in connection with loans on individual cooperative units, the first lien requirement shall not apply but such loans shall be adequately secured as defined by the B o a r d), combinations of homes and business property, other dwelling units, or combinations of dwelling units including homes and business property involving only minor or incidental business use; ' ' (B) the term 'loans' includes obligations and extensions or advances of credit; and any reference to a loan or investment includes an interest in such a loan or investment; and " (C) the term 'State' means any State of the United States, the District of Columbia, the Commonwealth of P u e r to Eico, the Virgin Islands, the Canal Zone, Guam, American Samoa, and any territory or possession of the United States.", (b) Undesignated paragraph 15 of such section 5(c) is transferred to the end of section 5 of the H o m e Owners' Loan Act of 1933 (12 U.S.C. 1464) and redesignated as subsection (m) of that section, undesignated paragraph 17 of such section 5(c) is transferred to the end of section 5 of the Home Owners' Loan Act of 1933 and redesignated as subsection (1) of that section, and undesignated paragraph 23 of such section 5(c) is transferred to the end of section 5(b) of the Home Owners' Loan Act of 1933 and redesignated as section 5(b)(3). SEC. 1702. Section 302(h) of the Federal H o m e Loan Mortgage Corporation Act (12 U.S.C. 1451 (h)) is amended by adding the following at the end thereof: " The term 'residential mortgage' is also deemed to include a secured loan or advance of credit the proceeds of which are intended to finance the rehabilitation, renovation, modernization, refurbishment, or improvement of properties as to which the Corporation may purchase a 'residential mortgage' as defined under the first

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