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This entry was published on 2014-09-22
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SECTION 6
Investment in obligations of housing corporations indirectly guaranteed pursuant to the "Servicemen's Readjustment Act of 1944"
Banking (BNK) CHAPTER 2, ARTICLE 1
§ 6. Investment in obligations of housing corporations indirectly
guaranteed pursuant to the "Servicemen's Readjustment Act of 1944".
Subject to such regulations and restrictions as the superintendent of
financial services finds to be necessary and proper, any bank, trust
company or savings bank may invest in obligations of any corporation
organized under any law of this state for the purpose of acquiring,
constructing, owning, maintaining, operating, selling or conveying a
housing project or projects (not including hotels but including
accommodations for retail stores, shops, offices and other community
services reasonably incident to such projects) located within this
state, which obligations are (a) secured by a first mortgage lien on
such project, or such part thereof, as was or is to be constructed or
acquired out of the proceeds of such obligations, either directly or by
issue under an indenture of mortgage from such corporation to a
corporate trustee having its principal office in this state, and (b)
guaranteed indirectly through the pledge as security therefor of
obligations directly guaranteed under title three of an act of congress
entitled the "Servicemen's Readjustment Act of 1944", in an aggregate
amount equal to at least thirty per centum of the principal amount of
all sums advanced to such corporation under the loan instrument or
indenture during the period of construction and, upon completion, to the
extent of at least forty per centum of the principal amount of such
obligations.