J. MILLARD TAWES, GOVERNOR                            219

itself to do so. All notices with respect to an application for with-
drawal as aforesaid shall be sent to the applicant by mail at his last
address. Unless the applicant shall apply in person or by writing
for such withdrawal within thirty (30) days from the date of such
notice, no payment on account of such application shall be made,
and such application shall be cancelled. Such withdrawing members
shall not at any time be deemed creditors of said association, either
before or after the notice to withdraw, and said withdrawing mem-
bers shall have no right of action at law or in equity against said
association for the repayment of any amount sought to be withdrawn
unless and until a default shall occur in said payments as provided
for above, and then only at law, and to the extent of the secured
payments due as above provided.

161Y. DEFINITE RATE SECURITIES FORBIDDEN.

No association shall issue, sell, negotiate, or advertise for sale
either to members or the public any type of investment security
other than free share accounts, GUARANTY STOCK "Christmas"
and/or "vacation club" funds in account with it. No association shall
agree to pay, on any free share account, a rate or amount, in dividends
or other distributions, which is fixed. This Section shall not be con-
strued, however, to exclude the power of an association to borrow
money from banks, or other similar borrowings.

161Z. INVESTMENTS OF ASSOCIATIONS.

(a) Power to invest. In addition to the investments permitted to
be made by associations organized under the laws of this State, pur-
suant to Section 150 of this Article, every association shall have
power to invest:

(1)  in such real estate as may be or reasonably anticipated to be
necessary or convenient for the transaction of its business, and this
shall include the power to derive revenue, by rental or otherwise,
from any portion of such real estate;

(2)  in real estate purchased at auction sale, public or private,
judicial or otherwise, upon which the association has lien or claim,
legal or equitable;

(3) in real estate accepted by the association in satisfaction of any
obligation;

(A) in real estate acquired by the association in exchange for real
estate owned by the association;

(5)  in real estate acquired by the association in connection with
salvaging the value of property owned by the association;

(6)  in chattels and equipment necessary to conduct its business.

(7)  BY MAKING LOANS TO MEMBERS OF COOPERATIVE
HOUSING PROJECTS SECURED BY THE ASSIGNMENT OF
THEIR INTEREST OR EQUITY IN A UNIT OF SUCH PROJECT,
NOTWITHSTANDING THE FACT THAT SUCH PROJECT AS A
WHOLE MAY BE SUBJECT TO A PRIOR LIEN, AND NOTWITH-
STANDING ANY OTHER PROVISIONS OF THIS ACT.

(8)  WITH BANKS INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION.