(1)Any savings and loan
association organized and incorporated under the laws of this state as a savings
and loan association that is eligible to become a member of the federal home loan
bank, in accordance with the Federal Home Loan Bank Act, 12 U.S.C. sec. 1421 et
seq., as amended, is authorized to subscribe for stock of the federal home loan bank
for the district in which it is located and to invest its funds in such stock for the
purpose and to the extent required and permitted by the Federal Home Loan Bank
Act, 12 U.S.C. sec. 1421 et seq., as amended, and is further authorized to furnish to
the federal home loan bank reports of examinations of associations made by the
commissioner, and is further authorized to consent to an examination to be made by
the federal home loan ba
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(1) Any savings and loan
association organized and incorporated under the laws of this state as a savings
and loan association that is eligible to become a member of the federal home loan
bank, in accordance with the Federal Home Loan Bank Act, 12 U.S.C. sec. 1421 et
seq., as amended, is authorized to subscribe for stock of the federal home loan bank
for the district in which it is located and to invest its funds in such stock for the
purpose and to the extent required and permitted by the Federal Home Loan Bank
Act, 12 U.S.C. sec. 1421 et seq., as amended, and is further authorized to furnish to
the federal home loan bank reports of examinations of associations made by the
commissioner, and is further authorized to consent to an examination to be made by
the federal home loan bank, and is further authorized to do all other things as may
be required by the Federal Home Loan Bank Act, 12 U.S.C. sec. 1421 et seq., as
amended, necessary to obtain and to continue membership in the federal home loan
bank and to obtain advances from the federal home loan bank or that may be
incidental to acquiring or holding membership and to obtaining advances from the
federal home loan bank, and is authorized to assume all the duties, obligations,
responsibilities, and liabilities and become entitled to all the benefits provided in
the Federal Home Loan Bank Act, 12 U.S.C. sec. 1421 et seq., as amended.
(2) Any savings and loan association has the power to borrow money from
the federal home loan bank, when authorized by resolution of its board of directors,
upon such terms and rates of interest as may be agreed upon and is authorized to
assign and pledge its notes, bonds, mortgages, or other property and to repledge
the shares of stock pledged to it as collateral security without securing the consent
of the owner thereto as security for the repayment of its indebtedness for money
borrowed.
(3) Such pledgee of any note or other evidence of indebtedness due to an
association has the right to enforce in its own name or in the name of the
association all appropriate remedies to enforce collection, whether or not the
shares described in connection with said note are held by such pledgee. Any
obligation incurred by or loan made to an association shall constitute a claim
against the association's assets and shall be payable in advance of and by
preference over all claims or rights of the shareholders or stockholders of such
association and shall be prior to and outrank any demand or application for
withdrawal or cancellation of all classes of shares or stock or units or certificates in
said association including prepaid and matured shares. The existence of a
withdrawal list consisting of members desiring to withdraw from the association
shall not prevent the board of directors of such association, in its discretion, from
borrowing money from the federal home loan bank, to be used for the purpose of
making mortgage loans to the members of the association or retiring bank loans, in
which event all such amount of borrowed money may be exclusively used for the
purpose borrowed or for other purposes, subject to the approval of the
commissioner; but no savings and loan association shall at any time borrow money
from the federal home loan bank in an amount exceeding any limit fixed by the laws
of this state.
(4) Any savings and loan association having funds in its treasury for
investment, which funds are deemed by it to be in excess of the amount needed for
loans to its members and for the payment of matured shares and withdrawals, has
the power to invest such portion of these excess funds in the obligations, bonds,
debentures, and other securities of the federal home loan bank; but such
investments may not be made in an amount in excess of the limit, if any, provided by
the laws of this state for investment of funds in classes of investment other than in
mortgage loans to members of the association.
(5) Any officer, director, trustee, attorney, or agent of a savings and loan
association, or other borrower, acting as agent for a federal home loan bank in the
collection of interest, amortization, or installment payments on collateral deposited
with said bank, who applies the proceeds of such collections otherwise than as
provided in the agreement with the bank is guilty of theft and shall be subject to
the punishment provided by the laws of this state for that offense.