(1) A savings and loan association may invest
any portion of its funds in any of the following:
(a) Loans to its members, secured by first lien trust deeds or mortgages
upon improved real estate, and upon such plans of repayment, as provided in
section 11-41-119, and in such other loans to its members as the commissioner may
approve;
(b) Bonds and other obligations of, or guaranteed as to interest and principal
by, the United States;
(c) Bonds or debentures issued by any federal home loan bank in accordance
with the provisions of the Federal Home Loan Bank Act;
(d) Consolidated federal home loan bank bonds or debentures issued by the
federal home loan bank administration in accordance with the provisions of the
Federal Home Loan Bank Act;
(e) Bonds or debentures issued by the federal deposit insurance corporation
or its successor in accordance with the provisions of Title IV of the National
Housing Act, and any amendments thereto;
(f) Insured shares of savings and loan associations to the extent that each
investment is insured by the federal deposit insurance corporation or its successor
and uninsured shares of savings and loan associations but not to exceed ten
thousand dollars in any one uninsured association, if such associations are
incorporated under the laws of this state or the federal government and are doing
business in this state and if such associations are functioning and operating without
any restrictions imposed by order of the commissioner or federal home loan bank
administration;
(g) Bonds and legal registered warrants as are a direct obligation of the
state of Colorado or of any county, city and county, school district, or incorporated
city or town therein which has continuously existed as a lawful corporation for a
period of at least fifteen years prior to the date thereof and whose bonds have not
been in default as to principal or interest for a period of five years prior to the
purchase of the same by any savings and loan association;
(h) Other investments, as approved by the commissioner, in which and to the
same extent that savings and loan associations, chartered in accordance with the
provisions of the Home Owners' Loan Act of 1933, as amended, may invest;
(i) (I) Capital stock, obligations, or other securities of any corporation, if such
corporation is engaged only in such businesses and activities as may be engaged in
by corporations whose capital stock is a lawful investment for federal savings and
loan associations under the laws, rules, and regulations applicable to all federal
savings and loan associations similarly situated. The maximum total investment by
any association in any such corporation or combination of corporations shall not
exceed the maximum investment which federal savings and loan associations are
permitted to maintain in capital stock, obligations, or other securities of similar
corporations.
(II) In addition to the maximum total investment provided in subparagraph (I)
of this paragraph (i), an association may invest an additional three percent of its
assets in such corporation or combination of corporations solely for residential real
estate development through joint ventures. Nothing in this subparagraph (II) shall
authorize participation in such joint ventures conditioned upon utilization of any real
property held, directly or indirectly, by such corporation. This subparagraph (II) shall
not be construed to authorize such corporation or combination of corporations to
invest in real property unless such investment is initiated through a joint venture.
(III) An association organized under the laws of this state shall not acquire
the capital stock, obligations, or other securities of any corporation described in
subsection (1)(i)(I) of this section until the corporation has filed in the office of the
commissioner a statement agreeing to permit and pay all costs of any examinations
or audits of the corporation by the commissioner that the commissioner deems
necessary in order to confirm compliance with this subsection (1)(i).
(j) Investments in real property and obligations secured by liens on real
property located within a geographic area or neighborhood receiving concentrated
development assistance by a local government under Title I of the Housing and
Community Development Act of 1974, as amended, but no investment in real
property may exceed an aggregate investment of two percent of the assets of the
association;
(k) Loans as to which the association has the benefit of any guaranty under
Title IV of the Housing and Urban Development Act of 1968, as amended, or under
part B of the National Urban Policy and New Community Development Act of
1970, as amended, or under section 802 of the Housing and Community
Development Act of 1974, as amended, or of a commitment or agreement therefor;
(l) Revenue obligations issued to provide, enlarge, or improve electric power,
gas, water, and sewer facilities by any city or town having a population of not less
than two thousand people at the time of the investment located in any state in the
United States and such investment shall be in accordance with the laws of this
state.
(2) In addition to the acceptance of deposit or share accounts, any
association may borrow money and negotiate for and receive such long-time or
short-time loans evidenced by notes, bonds, debentures, or other securities as may
be found necessary to advance the purposes of the association, subject to any
limitations as to the total aggregate amount of such borrowings contained in the
charter or articles of incorporation of the association or imposed by rules and
regulations duly adopted by the commissioner. Except as limited by the terms of its
charter or articles of incorporation or by duly adopted rules and regulations of the
commissioner, an association may secure such borrowings by the mortgage,
pledge, collateral assignment, or other hypothecation of its properties, including a
trust or pool or mortgages or other encumbrance held by it. Without limiting the
generality of the foregoing, an association may issue and sell securities guaranteed
pursuant to section 306 (g) of the National Housing Act, as amended, and may
secure such securities as permitted in this subsection (2) and may issue and sell any
other guaranteed or unguaranteed securities of a type or kind which may be issued
and sold by federal savings and loan associations and secure the same with the
property of the association to the same extent as permitted for federal savings and
loan associations.
(3) Any association may invest in real estate or interests therein, including
buildings and related parking facilities, for use in the conduct of the business of the
association or for the conduct of such business and for rental to others of excess
space; but no such investment may be made without the prior approval in writing of
the commissioner if the total amount of all of such investments made by the
association exceeds the aggregate amount of the association's general reserves,
undivided profits, and surplus. A permitted investment under the foregoing
provision shall be deemed to include the ownership of stock of a wholly-owned
subsidiary corporation having as its exclusive activity the ownership and
management of such property or interests.
(4) An association may loan an amount not exceeding three percent of the
association's assets in a manner not otherwise authorized by articles 40 to 47 of
this title, on condition that such loans are related to real estate or housing.
(5) An association may invest in real estate, real estate interests, and real
estate related enterprises for the purpose of producing income, for inventory and
sale, improvement, or rental by direct purchase or otherwise. The maximum total
investment by an association pursuant to this subsection (5) shall not exceed ten
percent of its assets reduced by the amount invested by the association in real
estate through service corporations pursuant to paragraph (i) of subsection (1) of
this section. In connection with such investment, the association may exercise all
rights of an owner.