A savings bank may loan funds as follows:

(1)  On the security of withdrawable accounts, but no such loan shall exceed the withdrawal value of the pledged account;

(2)  On the security of real estate:

(a)  Of a value, determined in accordance with this Chapter, sufficient to provide good and ample security for the loan;

(b)  With the title established by such evidence of title as is consistent with sound lending practices in the locality;

(c)  With the security interest in such real estate evidenced by an appropriate written instrument and the loan evidenced by a note, bond, or similar written instrument.  A loan on the security of the whole of the beneficial interest in a land trust satisfies the requirements of this Paragraph if the title to the land is held by a corporate trustee and if the real estate held in the land trust meets the other requirements of this Section; and

(d)  With a mortgage loan not to exceed thirty years;

(3)  For the purpose of repair, improvement, rehabilitation, furnishing, or equipment of real estate;

(4)  For the purpose of financing or refinancing an existing ownership interest in certificates of stock, certificates of beneficial interest, or other evidence of an ownership interest in, and a proprietary lease from, a corporation, trust, or partnership formed for the purpose of the cooperative ownership of real estate, secured by the assignment or transfer of such certificates or other evidence of ownership of the borrower;

(5)  Through the purchase of loans which at the time of purchase the savings bank could make in accordance with this Part and the bylaws;

(6)  Through the purchase of installment contracts for the sale of real estate, and title thereto which is subject to such contracts, but in each instance only if the savings bank at the time of purchase could make a mortgage loan of the same amount and for the same length of time on the security of such real estate;

(7)  Through loans guaranteed or insured, wholly or in part by the United States or any of its instrumentalities, and without regard to the limits in amount and terms otherwise imposed by this Part;

(8)  Subject to the limitations imposed by existing law, through secured or unsecured loans for business, corporate, commercial, or agricultural purposes;

(9)  For the purpose of mobile home financing, subject to the limitations imposed by existing law;

(10)  Through loans secured by the cash surrender value of any life insurance policy or any collateral which would be a legal investment if made by such savings bank pursuant to the terms of this Chapter;

(11)  Any provision of this Chapter to the contrary notwithstanding, and subject to the commissioner’s regulations, any savings bank may make any loan or investment or engage in any activity which it could make or engage in if it were organized under state law as a bank, savings and loan association, or other financial institution, or under the laws of the United States for national banks, federal savings and loan associations, or other financial institutions whose principal offices are located within this state.

(12)  A savings bank may issue letters of credit or other similar arrangements only as provided by this Chapter with regard to aggregate amounts permitted, underlying documentation and underwriting, legal limitations on loans of the savings bank, control and subsidiary records, and other procedures deemed necessary by the commissioner;

(13)  For the purpose of automobile financing, subject to the limitations imposed by existing law;

(14)  For the purpose of financing of primary, secondary, undergraduate, or post-graduate education; and

(15)  Through revolving lines of credit on the security of a first or second mortgage on the borrower’s personal residence, based primarily on the borrowers equity, the proceeds of which may be used for any purpose; such loans being commonly referred to as home equity loans.

Acts 1990, No. 816, §1, eff. Sept. 1, 1990.