§412:7-302  Requirements and limits for
certain loans.  (a)  Not less than sixty per cent of the amount of loans
and extensions of credit made by a savings and loan association shall be in
loans and extensions of credit secured by real estate.



(b)  The aggregate amount loaned by any savings
and loan association for the following types of loans, whether secured or
unsecured, shall not exceed the following limits:



(1)  Commercial loans:  twelve and one-half per cent
of the savings and loan association's total assets.  For purposes of this
section "commercial loan" means any loan primarily for business,
corporate, commercial, or agricultural purposes where the savings and loan
association substantially relies on the borrower's general credit standing for
repayment of the loan and, if the loan is secured by real property, does not
primarily rely on the value of or income or projected income from the security
for repayment of the loan;



(2)  Education loans:  five per cent of the savings
and loan association's total assets.  For purposes of this section,
"education loan" means any loan the proceeds of which are used to pay
for tuition, fees, books, and other expenses related to primary, secondary,
vocational and undergraduate and postgraduate college or university education;



(3)  Unsecured construction loans:  five per cent of
the savings and loan association's total assets.  For purposes of this section,
"unsecured construction loan" means any loan to provide financing for
what is expected to be residential real estate and where the savings and loan
association relies primarily on the borrower's general credit and projected
future income, if any, from such completed construction.



(c)  A savings and loan association may
reclassify or apportion a loan from one category to another in this section. [L
1993, c 350, pt of §1]