Subject to rules of the division, a savings bank may lend funds under any of the following conditions or for any of the following purposes: (1) On the security of deposit accounts, but such a loan may not exceed the withdrawal value of the pledged account and each deposit account loan shall be evidenced by a note and a pledge of the deposit account. (2) On the security of real estate if all of the following conditions exist: (a) The value of the real estate is sufficient to provide security for the loan. (b) Evidence of title is established. (c) The security interest in the real estate is evidenced by an appropriate written instrument and the loan is evidenced by a note, bond or similar written instrument. (d) The mortgage loan does not exceed 40 years. (3) For the purpose of repair, improvement, rehabilitation or furnishing of real estate. (4) For the purpose of financing or refinancing an existing ownership interest in certificates of stock, certificates of beneficial interest, other evidence of an ownership interest in, or a proprietary lease from a corporation, limited liability company, trust, or partnership formed for the purpose of the cooperative ownership of real estate, secured by the assignment or transfer of certificates or other evidence of ownership of the borrower. (5) Through the purchase in whole or in part of loans that, at the time of purchase, the savings bank could make under this chapter and its bylaws. (6) Through the purchase of an installment contract for the sale of real estate and title to the real estate that is subject to the contract if the savings bank, at the time of purchase, could make a mortgage loan of the same amount and for the same length of time on the security of the real estate. (7) Through loans guaranteed or insured, in whole or in part, by the United States or any of its instrumentalities. (8) Through secured or unsecured loans for business, corporate, commercial or agricultural purposes. Unless a greater amount is authorized in writing by the division, the total of all loans granted under this subsection may not exceed 20 percent of the savings bank’s total assets. (9) Through secured or unsecured loans for personal, family or household purposes if the total of all loans granted under this subsection does not exceed 20 percent of the savings bank’s total assets, unless the division grants written authorization for the savings bank to grant loans under this subsection in a greater amount. (10) For the purpose of mobile home or manufactured home financing. (11) For loans made through credit cards or credit card accounts. (12) Through issuance of letters of credit or other similar arrangements as provided for by rules of the division with regard to aggregate amounts permitted, take-out commitments for stand-by letters of credit, underlying documentation and underwriting, legal limitations on loans of the savings bank, control and subsidiary records and other procedures considered to be necessary by the division. (13) For the purpose of automobile financing. (14) For the purpose of financing educational expenses. (15) Through revolving lines of credit on the security of a first or junior lien on the borrower’s personal residence, or on other residential real estate based primarily on the borrower’s equity, the proceeds of which may be used for any purpose. (16) As secured or unsecured credit to cover the payment of checks, drafts or other funds transfer orders in excess of the available balance of an account on which they are drawn. (17) For any other purpose authorized by rule of the division.
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