State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-45

§53‑45.  Banks, fiduciaries, etc., authorized to invest in securitiesapproved by the Secretary of Housing and Urban Development, Federal HousingAdministration, Veterans Administration, etc.

(a)        Insured Mortgagesand Obligation of National Mortgage Associations and Federal Home Loan Banks. –It shall be lawful for all commercial and industrial banks, trust companies,building and loan associations, savings and loan associations, insurancecompanies, mortgagees and loan correspondents approved by the Secretary ofHousing and Urban Development or Federal Housing Administration, and otherfinancial institutions engaged in business in this State, and for guardians,executors, administrators, trustees or others acting in a fiduciary capacity inthis State to invest, to the same extent that  such funds may be invested ininterest‑bearing obligations of the United States, their funds or moneysin their custody or possession which are eligible for investment, in bonds ornotes secured by a mortgage or deed of trust insured or guaranteed by theFederal Housing Administration, Secretary of Housing and Urban Development orthe Veterans Administration, or in mortgages or deeds of trust on real estatewhich have been accepted for insurance or guarantee by the Federal HousingAdministration, Secretary of Housing and Urban Development or VeteransAdministration, and in obligations of a national mortgage association whichobligations are insured or guaranteed by the United States Government, orbonds, debentures, consolidated bonds, or other obligations of any federal homeloan bank or banks.

(b)        Insured orGuaranteed Loans; Loans Purchased by National Mortgage Associations and FederalHome Loan Banks. – All such banks, trust companies, building and loanassociations, savings and loan associations, insurance companies, mortgageesand loan correspondents approved by the Secretary of Housing and UrbanDevelopment, or Federal Housing Administration, and other financialinstitutions, and also all such guardians, executors, administrators, trusteesor others acting in a fiduciary capacity in this State, may make such loans,secured by real estate, as the Secretary of Housing and Urban Development, theFederal Housing Administration, a national mortgage association, or theVeterans Administration has insured or guaranteed, or has made a commitment toinsure or guarantee, and may obtain such insurance or guarantee; provided,further, that the above designated financial institutions, may make loans,secured by real estate, that are eligible and committed for sale to a nationalmortgage association, federal home loan bank, federal home loan mortgagecorporation or other agency or instrumentality of the United States.

(c)        Eligibility forCredit Insurance. – All banks, trust companies, building and loan associations,savings and loan associations, insurance companies, mortgagees and loancorrespondents approved by the Secretary of Housing and Urban Development, orFederal Housing Administration and other financial institutions, on being approvedas eligible for credit insurance by the Secretary of Housing and UrbanDevelopment, the Federal Housing Administration, or the VeteransAdministration, may make such loans as are insured by the Secretary of Housingand Urban Development or Federal Housing Administration or insured orguaranteed by the Veterans Administration.

(d)        Certain SecuritiesMade Eligible for Collaterals, etc. – Whenever by statute of this State,collateral is required as security for the deposit of public or other funds; ordeposits are required to be made with any public official or department; or aninvestment of capital or surplus, or a reserve or other fund is required to bemaintained, consisting of designated securities, bonds, and notes secured by amortgage or deed of trust insured or guaranteed by the Secretary of Housing andUrban Development, Federal Housing Administration, or Veterans Administration,debentures issued by the Secretary of Housing and Urban Development or theFederal Housing Administration and obligations of a national mortgageassociation shall be eligible for such purposes.

(e)        General Laws notApplicable. – No law of this State prescribing the nature, amount or form ofsecurity or requiring security upon which loans or investments may be made, orprescribing or limiting the rates or time of payment of the interest anyobligation may bear, or prescribing or limiting the period for which loans orinvestments may be made, shall be deemed to apply to loans or investments madepursuant to the foregoing paragraphs. (1935, cc. 71, 378; 1937, c.333; 1959, c. 364, s. 1; 1961, c. 291; 1971, c. 888.)