SPIRO T. AGNEW, Governor                        1509

(11)    in loans to members of cooperative housing projects secured
by the assignment of their interest or equity in a unit of such proj-
ect, notwithstanding the fact that such project as a whole may be
subject to a prior lien, and notwithstanding any other provisions of
this Article;

(12)    in deposits with or obligations of banks insured by the
Federal Deposit Insurance Corporation or with banks chartered by
the State of Maryland which are approved as depositories by the
Director with the advice and consent of the Board, and which have
been actively engaged in the banking business for a period of at
least ten years and have a paid in capital of at least five million dollars.

(b) The Board, by regulation, may authorize associations to in-
vest in the following types of investments subject to such conditions
and restrictions as the Board may from time to time impose:

(1)    in participation interests (not exceeding fifty per cent of
the total amount of the loan) with savings and loan associations
located in other States and the District of Columbia or with an
agency or instrumentality of the United States in loans secured by
first liens on real estate located in other States or the District of
Columbia. Whenever a loan is insured or guaranteed by the United
States or an agency or instrumentality of the United States, an
association may participate with savings and loan associations wher-
ever located in loans secured by first liens on real estate wherever
located;

(2)    in the capital stock, obligations or other securities of an
organization, A CORPORATION, ALL OF THE CAPITAL STOCK
OF WHICH IS OWNED BY FINANCIAL INSTITUTIONS AND

substantially all the activities which consist of originating, purchas-
ing, selling, and servicing loans upon real restate and participating
interests therein, or clerical, bookkeeping, accounting, statistical, or
other similar functions performed primarily for financial institutions,
plus such other activities as the Director BOARD may approve;

(3)    in bonds, notes, or other evidences of indebtedness, WHICH
THE BOARD SHALL APPROVE AND which are general obligations
of, or guaranteed as to principal and interest by, any other State or
the District of Columbia PROVIDED HOWEVER, NO AUTHORI-
ZATION SHALL BE ISSUED FOR AN INVESTMENT IN EX-
CESS OF FIVE PER CENT (5%) OF THE TOTAL AGGREGATE
WITHDRAWAL VALUE OF FREE SHARE ACCOUNTS;

(4) in other stocks, securities, and obligations which the Direc-
tor shall approve and place on a list to be published and distributed

to every association from time to time;

(5) (4) in loans for educational purposes or in home improvement
loans either of which may be secured or unsecured and may be
second liens on real estate whether or not the first lien on the real
estate is held by the association.

(c)    Title to real estate.—Title to all real estate shall be taken in
the name of the association.

(d)    Association not required to dispose of investments.—Any
association holding investments which have been allowed by rule
or regulation of the Board or which are on the list published by the