§ 380. Power to make loans. 1. A savings and loan association may make\na loan upon the security of a mortgage of the type authorized to be made\nby a savings bank by subdivisions five-a and six of section two hundred\nthirty-five of this chapter, subject to such regulations as the\nsuperintendent of financial services may prescribe.\n 1-b. A savings and loan association may also lend its funds to\nborrowers therefrom upon their promissory notes payable to the\nassociation which are:\n (a) secured by one or more mortgages in which a savings and loan\nassociation may invest; provided however, that the amount loaned is not\nin excess of ninety per centum of the principal sum secured by such\nmortgage or mortgages. The assignment of every mortgage taken as\nsecurity for any such note shall be recorded or registered in the office\nof the proper recording officer of the county in which the real property\ndescribed in such mortgage is located, unless such mortgage or mortgages\nhave been so assigned by a savings and loan association;\n (b) secured by any of the stocks and bonds in which a savings and loan\nassociation may invest, except stocks eligible for investment pursuant\nto the provisions of subdivision twenty-six of section two hundred\nthirty-five of this chapter; provided however, that the amount of the\nloan is not in excess of ninety per centum of the market value of such\nstocks and bonds;\n (c) made by a savings bank which has been incorporated three years or\nmore.\n (d) secured by any of the stocks eligible for investment by a savings\nand loan association pursuant to the provisions of subdivision\ntwenty-six of section two hundred thirty-five of this chapter; provided\nhowever, that (1) the amount of the loan is not in excess of the lesser\nof (i) eighty-five per centum of the market value of such stocks, or\n(ii) the maximum loan value of such stocks determined in accordance with\nFederal Reserve Regulation U and the supplement thereto of the board of\ngovernors of the federal reserve system and as if the savings and loan\nassociation were a member bank of such system extending credit secured\nby such stocks for their purchase as margin stock, and (2) the amount of\nsuch loan, together with the aggregate amount outstanding of all loans\nmade pursuant to this paragraph and the aggregate amount of investments\nin stock eligible for investment by a savings and loan association\npursuant to the provisions of subdivision twenty-six of section two\nhundred thirty-five of this chapter, shall not exceed the aggregate\nlimitations set forth in subdivision twenty-six of section two hundred\nthirty-five of this chapter;\n 2. A savings and loan association may lend its funds to its members\nupon their notes as follows: (a) secured by the transfer and pledge to\nthe association of shares of any savings and loan association or by the\nassignment to the association of a time deposit in any savings and loan\nassociation, the withdrawal value of which, in either case, shall not be\nless than the amount of any such loan.\n (b) Representing loans and advances of credit for the purpose of\nfinancing alterations, repairs and improvements upon or in connection\nwith, or as the superintendent may authorize the equipping of existing\nstructures, and the building of new structures, upon urban, suburban, or\nrural real property (including the restoration, rehabilitation,\nrebuilding, and replacement of such improvements which have been damaged\nor destroyed by earthquake, conflagration, tornado, hurricane, cyclone,\nflood, or other catastrophe), by the owners thereof or by lessees of\nsuch real property under a lease expiring not less than six months after\nthe maturity of the loan or advance of credit or by lessees under\nproprietary leases from a corporation or partnership formed for the\npurpose of the cooperative ownership of real estate, provided: (1) the\namount of such loan, advance of credit, or purchase made for the purpose\n
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