(A) A state savings bank may lend funds:
(1) on the security of deposit accounts, but no loan shall exceed the withdrawal value of the pledged deposit account;
(2) on the security of real property:
(a) of a value, determined in accordance with this chapter and appraisal rules or regulations as the board may adopt sufficient to provide good and ample security for the loan;
(b) with a fee simple title or a leasehold title of no less duration than ten years beyond the maturity of the loan;
(c) with the security interest in the real estate evidenced by an appropriate written instrument and the loan evidenced by a note, bond, or similar written instrument. A loan on the security of the whole of the beneficial interest in a land trust satisfies the requirements of this subitem if the title to the land is held by a corporate trustee and if the real estate held in the land trust meets the other requirements of this item;
(3) for the purpose of repair, improvement, rehabilitation, furnishing, or equipment of real estate;
(4) the purpose of financing or refinancing an existing ownership interest, in certificates of stock, certificates of beneficial interest, or other evidence of an ownership interest in, and a proprietary lease from, a corporation, trust, or partnership formed for the purpose of the cooperative ownership of real estate, secured by the assignment or transfer of the certificates or other evidence of ownership of the borrower;
(5) for the purchase of loans that, at the time of purchase, the state savings bank is authorized to make in accordance with this chapter;
(6) for the purchase of installment contracts for the sale of real estate, and title to it that is subject to the contract, but in each instance only if the state savings bank, at the time of purchase, is authorized to make a mortgage loan of the same amount and for the same length of time on the security of the real estate;
(7) for the purchase of loans guaranteed or insured, wholly or in part, by the United States or any of its instrumentalities;
(8) for secured or unsecured financing for business, corporate, personal, family, or household purposes, or for secured or unsecured loans for agricultural or commercial purposes, subject to rules or regulations as the board adopts;
(9) for the purpose of mobile home financing;
(10) for a loan secured by not more than ninety percent of the cash surrender value of a life insurance policy;
(11) for a loan on collateral that is a legal investment if made by the state savings bank under this chapter.
(B) Notwithstanding any provision of this chapter to the contrary, a state savings bank may make any loans within the lending limits prescribed that the state savings bank could make if it were incorporated and operating as a federal association or federal savings bank or as a state or national bank.
HISTORY: 1997 Act No. 90, Section 1, eff June 10, 1997.