1308                            LAWS OF MARYLAND                       CH. 650

in place of the sections so repealed AND to provide for the various
types of investments permitted for associations.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 150 and 161Z of Article 23 of the Annotated Code of
Maryland (1966 Replacement Volume and 1967 Supplement), title
"Corporations," subtitle "III. Particular Classes of Corporations,"
subheading "Building or Homestead Associations," be and they are
hereby repealed and a new Section 161Z be and is hereby enacted in
lieu thereof, to stand in place of the sections so repealed, and to read
as follows:

161Z. Investments of Associations; Power of Board to Authorize
Additional Investments; Title to Real Estate; Membership in Fed-
eral Home Loan Bank or Maryland Savings-Share Insurance Cor-
poration; Benefits of National Housing Act.

(a) Authorized investments.—Subject to such conditions and
restrictions as the Board, by regulation, may from time to time
impose, every association shall have the power to invest:

(1)    in loans secured by its free share accounts to the extent of
the withdrawal value thereof;

(2)    in mortgages on real or leasehold estate situated in this State
or outside of this State if within a fifty-mile radius of the principal
Maryland office of the association, or wheresoever situated if insured
or guaranteed by the United States or an agency or instrumentality
of the United States. Any mortgage held by an association shall be
a first lien upon such real or leasehold property, except that any
mortgage may be a second lien if the first lien on said property is
held by the association;

(3) in ground rents issuing from real estate located in this State;

(4) in bonds, notes, or other evidences of indebtness which are
general obligations of, or guaranteed as to principal and interest by,
this State, any county of this State or Baltimore City, the United
States, or any agency or instrumentality of the United States;

(5)    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;

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

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

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

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

(10)    in chattels and equipment necessary to conduct its busi-
ness;