§ 13-7-402 — Borrowing from federal home loan bank

(a) Any state savings and loan association may borrow
money from the federal home loan bank, when authorized by
resolution of its board of directors, upon terms and rates of
interest as may be agreed upon. It may assign and pledge its
notes, bonds, mortgages or other property and repledge the
shares of stock or savings certificates pledged to it as
collateral security without securing the consent of the owner as
security for the repayment of its indebtedness. Any lawful
holder of any evidence of indebtedness due to an association may
enforce, in his own name or in the name of the association, all
appropriate remedies to enforce collection, whether or not the
stock or savings certificate described in connection with the
note is held by the pledgee or holder.
(b) Any obligation incurred or loan made by an association
constitutes a claim against the corporate assets and is payable
in advance of, and by preference over, all claims or rights of
the shareholders or holders of savings certificates in any of
the assets of the association. These obligations are senior to
any demand for the withdrawal or cancellation of all classes of
shares or savings certificates in the association including
matured shares or savings certificates.
(c) The existence of a withdrawal list consisting of
members desiring to withdraw from the association does not
prevent the board of directors of the association from borrowing
money from the federal home loan bank to be used solely for the
purpose of making mortgage loans to the members of the
association, but all borrowed money shall be exclusively used
for the purpose borrowed. A savings and loan association shall
not at any time borrow money from the federal home loan bank in
an amount exceeding any limit fixed by the laws of this state.