(a) An association maylend funds on the sole security of pledged withdrawable accounts, but no loanso made shall exceed the withdrawal value of the pledged account. However, nosuch loan shall be made when an association has applications for withdrawals ormaturities which have not been paid.
(b) An association maylend funds on the security of real property:
(1) Of such value,determined in accordance with the provisions of this Chapter and the rules andregulations concerning appraisals, sufficient to provide good and amplesecurity for the loan; and
(2) Which has a feesimple title, totally free from encumbrances except as permitted within thisArticle; or
(3) Which has aleasehold title extending or renewable automatically or at the option of theholder or at the option of the association for a period of at least 10 yearsbeyond the maturity of the loan; and
(4) Which has a cleartitle established by such evidence of title as is consistent with sound lendingpractices; and
(5) Where the securityinterest in such real property is evidenced by an appropriate writteninstrument creating or constituting a first and prior lien on real property,and the loan is evidenced by a note, bond or similar written instrument; or
(6) Where the securityinterest in such real property is evidenced by an appropriate writteninstrument creating or constituting a second or junior lien on real propertywhich is subject only to a mortgage or deed of trust securing a commercial loanor a residential loan made by the association or another lender; and
(7) Where the securityproperty may be subject also to taxes and special assessments not yet due andpayable.
(c) An association maylend funds on the security of the whole of the beneficial interest in a trustin which the trust property consists of real property of the type upon which aloan would be permitted under G.S. 54B‑151(b).
(d) An association maylend funds on the security of bonds issued as general obligations of orguaranteed by the United States, bonds issued as general obligations of thisState, and bonds issued as general obligations of any county, city, town,village, school district, sanitation or park district, or other politicalsubdivision or municipal corporation of this State. The amount of such loanmade under the authority of this subsection shall not exceed ninety percent(90%) of the face value of the bonds which serve as security.
(e) An association mayinvest in construction loans, the proceeds of which, under the terms of a writtencontract between a lender and a borrower, are to be disbursed periodically assuch construction work progresses. Such loans may include advances for thepurchase price of the real property upon which such improvements are to beconstructed. Any construction loan may be converted into a loan with permanentfinancing, and the term of the permanent financing shall be considered to beginat the end of the term allowed for construction.
(f) An association maylend funds without requiring security. No unsecured loan shall exceed themaximum amount authorized by regulation by the Commissioner of Banks.
(g) An association mayinvest in loans secured by a lien on unimproved real property.
(h) An association mayinvest in loans secured by the cash surrender value of any life insurancepolicy on the life of the borrower. However, the amount of such loan shall inno event exceed ninety percent (90%) of the cash surrender value of such lifeinsurance policy.
(i) An association mayinvest in loans, obligations and advances of credit made for the payment ofexpenses of college or university education. Such loans may be secured, partlysecured or unsecured, and the association may require a comaker or comakers, aninsurance guarantee under a governmental student loan guarantee plan, or otherprotection against contingencies. The borrower shall certify to the associationthat the proceeds of the loan are to be used by a full‑time studentsolely for the payment of expenses of college or university education orcommunity college education.
(j) An association maylend funds on any collateral deemed sufficient by the board of directors toproperly secure loans. Loans made solely upon security of collateral consistingof stock or equity securities which are not listed on a national stock exchangeor regularly quoted and offered for trade on an over‑the‑countermarket, shall be considered loans without security.
(k) An association maylend funds on the security of a mobile home subject to such rules andregulations governing such loans as may be promulgated by the Commissioner ofBanks. (1981, c.282, s. 3; 1983, c. 144, s. 19; 1987, c. 564, s. 14; 2001‑193, s. 16.)
(a) An association maylend funds on the sole security of pledged withdrawable accounts, but no loanso made shall exceed the withdrawal value of the pledged account. However, nosuch loan shall be made when an association has applications for withdrawals ormaturities which have not been paid.
(b) An association maylend funds on the security of real property:
(1) Of such value,determined in accordance with the provisions of this Chapter and the rules andregulations concerning appraisals, sufficient to provide good and amplesecurity for the loan; and
(2) Which has a feesimple title, totally free from encumbrances except as permitted within thisArticle; or
(3) Which has aleasehold title extending or renewable automatically or at the option of theholder or at the option of the association for a period of at least 10 yearsbeyond the maturity of the loan; and
(4) Which has a cleartitle established by such evidence of title as is consistent with sound lendingpractices; and
(5) Where the securityinterest in such real property is evidenced by an appropriate writteninstrument creating or constituting a first and prior lien on real property,and the loan is evidenced by a note, bond or similar written instrument; or
(6) Where the securityinterest in such real property is evidenced by an appropriate writteninstrument creating or constituting a second or junior lien on real propertywhich is subject only to a mortgage or deed of trust securing a commercial loanor a residential loan made by the association or another lender; and
(7) Where the securityproperty may be subject also to taxes and special assessments not yet due andpayable.
(c) An association maylend funds on the security of the whole of the beneficial interest in a trustin which the trust property consists of real property of the type upon which aloan would be permitted under G.S. 54B‑151(b).
(d) An association maylend funds on the security of bonds issued as general obligations of orguaranteed by the United States, bonds issued as general obligations of thisState, and bonds issued as general obligations of any county, city, town,village, school district, sanitation or park district, or other politicalsubdivision or municipal corporation of this State. The amount of such loanmade under the authority of this subsection shall not exceed ninety percent(90%) of the face value of the bonds which serve as security.
(e) An association mayinvest in construction loans, the proceeds of which, under the terms of a writtencontract between a lender and a borrower, are to be disbursed periodically assuch construction work progresses. Such loans may include advances for thepurchase price of the real property upon which such improvements are to beconstructed. Any construction loan may be converted into a loan with permanentfinancing, and the term of the permanent financing shall be considered to beginat the end of the term allowed for construction.
(f) An association maylend funds without requiring security. No unsecured loan shall exceed themaximum amount authorized by regulation by the Commissioner of Banks.
(g) An association mayinvest in loans secured by a lien on unimproved real property.
(h) An association mayinvest in loans secured by the cash surrender value of any life insurancepolicy on the life of the borrower. However, the amount of such loan shall inno event exceed ninety percent (90%) of the cash surrender value of such lifeinsurance policy.
(i) An association mayinvest in loans, obligations and advances of credit made for the payment ofexpenses of college or university education. Such loans may be secured, partlysecured or unsecured, and the association may require a comaker or comakers, aninsurance guarantee under a governmental student loan guarantee plan, or otherprotection against contingencies. The borrower shall certify to the associationthat the proceeds of the loan are to be used by a full‑time studentsolely for the payment of expenses of college or university education orcommunity college education.
(j) An association maylend funds on any collateral deemed sufficient by the board of directors toproperly secure loans. Loans made solely upon security of collateral consistingof stock or equity securities which are not listed on a national stock exchangeor regularly quoted and offered for trade on an over‑the‑countermarket, shall be considered loans without security.
(k) An association maylend funds on the security of a mobile home subject to such rules andregulations governing such loans as may be promulgated by the Commissioner ofBanks. (1981, c.282, s. 3; 1983, c. 144, s. 19; 1987, c. 564, s. 14; 2001‑193, s. 16.)
(a) An association maylend funds on the sole security of pledged withdrawable accounts, but no loanso made shall exceed the withdrawal value of the pledged account. However, nosuch loan shall be made when an association has applications for withdrawals ormaturities which have not been paid.
(b) An association maylend funds on the security of real property:
(1) Of such value,determined in accordance with the provisions of this Chapter and the rules andregulations concerning appraisals, sufficient to provide good and amplesecurity for the loan; and
(2) Which has a feesimple title, totally free from encumbrances except as permitted within thisArticle; or
(3) Which has aleasehold title extending or renewable automatically or at the option of theholder or at the option of the association for a period of at least 10 yearsbeyond the maturity of the loan; and
(4) Which has a cleartitle established by such evidence of title as is consistent with sound lendingpractices; and
(5) Where the securityinterest in such real property is evidenced by an appropriate writteninstrument creating or constituting a first and prior lien on real property,and the loan is evidenced by a note, bond or similar written instrument; or
(6) Where the securityinterest in such real property is evidenced by an appropriate writteninstrument creating or constituting a second or junior lien on real propertywhich is subject only to a mortgage or deed of trust securing a commercial loanor a residential loan made by the association or another lender; and
(7) Where the securityproperty may be subject also to taxes and special assessments not yet due andpayable.
(c) An association maylend funds on the security of the whole of the beneficial interest in a trustin which the trust property consists of real property of the type upon which aloan would be permitted under G.S. 54B‑151(b).
(d) An association maylend funds on the security of bonds issued as general obligations of orguaranteed by the United States, bonds issued as general obligations of thisState, and bonds issued as general obligations of any county, city, town,village, school district, sanitation or park district, or other politicalsubdivision or municipal corporation of this State. The amount of such loanmade under the authority of this subsection shall not exceed ninety percent(90%) of the face value of the bonds which serve as security.
(e) An association mayinvest in construction loans, the proceeds of which, under the terms of a writtencontract between a lender and a borrower, are to be disbursed periodically assuch construction work progresses. Such loans may include advances for thepurchase price of the real property upon which such improvements are to beconstructed. Any construction loan may be converted into a loan with permanentfinancing, and the term of the permanent financing shall be considered to beginat the end of the term allowed for construction.
(f) An association maylend funds without requiring security. No unsecured loan shall exceed themaximum amount authorized by regulation by the Commissioner of Banks.
(g) An association mayinvest in loans secured by a lien on unimproved real property.
(h) An association mayinvest in loans secured by the cash surrender value of any life insurancepolicy on the life of the borrower. However, the amount of such loan shall inno event exceed ninety percent (90%) of the cash surrender value of such lifeinsurance policy.
(i) An association mayinvest in loans, obligations and advances of credit made for the payment ofexpenses of college or university education. Such loans may be secured, partlysecured or unsecured, and the association may require a comaker or comakers, aninsurance guarantee under a governmental student loan guarantee plan, or otherprotection against contingencies. The borrower shall certify to the associationthat the proceeds of the loan are to be used by a full‑time studentsolely for the payment of expenses of college or university education orcommunity college education.
(j) An association maylend funds on any collateral deemed sufficient by the board of directors toproperly secure loans. Loans made solely upon security of collateral consistingof stock or equity securities which are not listed on a national stock exchangeor regularly quoted and offered for trade on an over‑the‑countermarket, shall be considered loans without security.
(k) An association maylend funds on the security of a mobile home subject to such rules andregulations governing such loans as may be promulgated by the Commissioner ofBanks. (1981, c.282, s. 3; 1983, c. 144, s. 19; 1987, c. 564, s. 14; 2001‑193, s. 16.)
