§ 11-41-118 — Loans - investment in notes or bonds

(1) Savings and loan
associations are authorized:

(a) To make such loans and advances of credit and purchases of obligations
representing loans and advances of credit as are eligible for insurance by the
federal housing administrator and to obtain such insurance;

(b) To make such loans, secured by real property or leasehold, as the federal
housing administrator insures or makes a commitment to insure and to obtain such
insurance.

(2) Associations may sell any loans authorized by this section, and each such
loan sold by an association shall be sold without recourse and, if under a contract to
service the same, on a basis which will reimburse the association adequately for the
cost of such servicing. All sale and servicing agreements shall be in writing and on
file in the association.

(3) It shall be lawful for savings and loan associations to invest their funds
and the moneys in their custody or possession which are eligible for investment in
notes or bonds secured by mortgage or trust deed insured by the federal housing
administrator, and in obligations of national mortgage associations or similar credit
institutions organized under Title III of the National Housing Act, and in
debentures issued by the federal housing administrator.

(4) No laws of this state requiring security upon which loans or investments
may be made, or prescribing the nature, amount, or form of such security, or
prescribing or limiting the period for which loans or investments may be made, or
affecting the negotiability of the loan instrument shall be deemed to apply to loans
or investments made pursuant to this section.

(5) An association may make loans for the purpose of mobile home financing,
subject to any limitation as to maximum loan amounts which may be prescribed
from time to time by the commissioner for all associations. For the purposes of this
subsection (5), mobile home means a mobile accommodation used or designed for
use as living quarters.

(6) An association may make loans for the repair, equipping, alteration, or
improvement of any real property, including mobile homes, subject to such
restrictions, limitations, prohibitions, conditions, and provisions as the commissioner
may from time to time, by rule or regulation duly adopted, prescribe.

(7) An association may make loans or invest in loans for the payment of
expenses for postsecondary school education, but the total aggregate principal
amount of an association's investment in such loans, exclusive of any investment
which is or which at the time of its making was otherwise authorized, shall not
exceed five percent of its invested capital.

(8) An association may issue letters of credit, subject to regulation by the
commissioner pursuant to section 11-44-103.

Legislative History

Source: L. 33: p. 242, � 14. CSA: C. 25, � 14(2). L. 43: p. 201, � 3. CRS 53: � 122-2-18. C.R.S. 1963: � 122-2-18. L. 69: p. 1015, � 7. L. 73: p. 237, � 16. L. 75: (5) and (6) amended, p. 1464, � 2, effective July 18. L. 76: (6) amended, p. 394, � 1, effective April 19. L. 79: (6) amended, p. 431, � 6, effective June 19. L. 83: (8) added, p. 499, � 1, effective July 1. L. 2025: (7) amended, (SB 25-275), ch. 377, p. 2039, � 50, effective August 6.