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SECTION 436
Restrictions on powers
Banking (BNK) CHAPTER 2, ARTICLE 10-B
§ 436. Restrictions on powers. The savings and loan bank shall not: 1.
Do a general deposit business except with its members.

2. Invest more than twenty-five per centum of its surplus account in
real estate occupied, or to be occupied, by it as a place of business,
without the written approval of the superintendent.

3. Incur any indebtedness, except for the purpose of making loans to
its members or purchasing from its members those investments made by
them under article ten of this chapter, upon any bonds or notes, secured
or unsecured, with a maturity exceeding three years or in an aggregate
amount exceeding five times its capital.

4. Incur any indebtedness upon bonds or notes, secured or unsecured,
for the purpose of making loans to its members unless the amount of any
such bonds or notes which are secured shall not be in excess of eighty
per centum of the value of the collateral security pledged therefor to
such savings and loan bank; and any such bonds or notes which are
unsecured shall not have a maturity in excess of three years.

5. Purchase from its members mortgage loans which were originated less
than five years prior to date of such purchase, nor incur indebtedness
for the purchase from its members of mortgage loans which were
originated five years or more prior to the date of such purchase by the
issuance of bonds or notes, secured or unsecured, with a maturity
exceeding five years.