17-5808. Associations may incidentally purchase loans.
17-5808
17-5808. Associations may incidentally purchase loans.
Every association shall primarily use its funds in making home loans
originated by it rather than in purchasing loans, but may incidentally
purchase loans of any type which it is permitted to make: Provided,
That no association may purchase bulk property in excess of ten percent
of its assets or $50,000, whichever is greater, without the approval of
the commissioner: Provided further, That no association may
purchase any real estate loan or other property from an affiliated
institution, or from an institution in liquidation, without the approval
of the commissioner. For the purposes of this section:
(a) An "affiliated institution" means: (1) An institution in which
the purchasing association has a substantial investment; or (2) an
institution which has a substantial investment in the purchasing
association; or (3) an institution of which the majority of the board of
directors are the same persons who constitute a majority of the board of
directors of the purchasing association.
(b) An "institution in liquidation" means: (1) An institution which
has been taken over for liquidation pursuant to law; or (2) an
institution which, in conformity with law, has determined to dissolve.
History: L. 1943, ch. 133, § 211; July 1.