17-5808.   Associations may incidentally purchase loans.Every association shall primarily use its funds in making home loansoriginated by it rather than in purchasing loans, but may incidentallypurchase loans of any type which it is permitted to make: Provided,That no association may purchase bulk property in excess of ten percentof its assets or $50,000, whichever is greater, without the approval ofthe commissioner: Provided further, That no association maypurchase any real estate loan or other property from an affiliatedinstitution, or from an institution in liquidation, without the approvalof the commissioner. For the purposes of this section:

      (a)   An "affiliated institution" means: (1) An institution in whichthe purchasing association has a substantial investment; or (2) aninstitution which has a substantial investment in the purchasingassociation; or (3) an institution of which the majority of the board ofdirectors are the same persons who constitute a majority of the board ofdirectors of the purchasing association.

      (b)   An "institution in liquidation" means: (1) An institution whichhas been taken over for liquidation pursuant to law; or (2) aninstitution which, in conformity with law, has determined to dissolve.

      History:   L. 1943, ch. 133, § 211; July 1.