§ 436 — Restrictions on powers

§ 436. Restrictions on powers. The savings and loan bank shall not: 1.\nDo a general deposit business except with its members.\n 2. Invest more than twenty-five per centum of its surplus account in\nreal estate occupied, or to be occupied, by it as a place of business,\nwithout the written approval of the superintendent.\n 3. Incur any indebtedness, except for the purpose of making loans to\nits members or purchasing from its members those investments made by\nthem under article ten of this chapter, upon any bonds or notes, secured\nor unsecured, with a maturity exceeding three years or in an aggregate\namount exceeding five times its capital.\n 4. Incur any indebtedness upon bonds or notes, secured or unsecured,\nfor the purpose of making loans to its members unless the amount of any\nsuch bonds or notes which are secured shall not be in excess of eighty\nper centum of the value of the collateral security pledged therefor to\nsuch savings and loan bank; and any such bonds or notes which are\nunsecured shall not have a maturity in excess of three years.\n 5. Purchase from its members mortgage loans which were originated less\nthan five years prior to date of such purchase, nor incur indebtedness\nfor the purchase from its members of mortgage loans which were\noriginated five years or more prior to the date of such purchase by the\nissuance of bonds or notes, secured or unsecured, with a maturity\nexceeding five years.\n