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This entry was published on 2014-09-22
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SECTION 174
Restrictions on purchases of, and loans on real estate
Banking (BNK) CHAPTER 2, ARTICLE 4
§ 174. Restrictions on purchases of, and loans on real estate. 1. No
private banker shall purchase with funds held by him as private banker
any real estate except a plot upon which there is or may be erected a
building suitable for the convenient transaction of his business; nor
make a loan of such funds upon the security of real estate, if such real
estate is unimproved, in excess of two-thirds, and if such real estate
is improved by a building or buildings or is to be improved by a
building or buildings in the process of construction, the major portion
of which building or buildings is used, or in the case of a building
under construction is to be used, for residential, business,
manufacturing or agricultural purposes, in excess of three-fourths, of
the appraised value of such real estate, or in an amount which when
added to the amount unpaid upon prior mortgages, liens and encumbrances
upon such real estate exceeds the foregoing respective proportions of
such appraised value, or if such real estate is subject to a prior
mortgage, lien or encumbrance and the amount unpaid upon such prior
mortgage, lien or encumbrance or the aggregate amount unpaid upon all
prior mortgages, liens and encumbrances exceeds ten per centum of the
permanent capital of such private banker.

2. All real estate acquired by a private banker in satisfaction or
reduction of loans of funds held by him as a private banker, shall be
sold within five years from the date of its acquisition, unless the
superintendent upon application shall extend the time within which such
sale shall be made.