HARRY HUGHES, Governor

483

In item (11) of this section, the term "security"
is substituted for "stock"; the present term
"participations" is deleted as included in the
phrase "any security, obligation, or other
instrument"; and the present phrase "issued by"
is deleted as included in "of".

In item (12) of this section, the term "security"
is added for clarity.

"Board of Commissioners", "Division Director",
and "savings and loan association" are defined in
§ 9-101 of this title.

"Any state", "mortgage", "political subdivision",
and "real property" are defined in § 1—101 of
this article.

9-420. INVESTMENTS BOARD MAY AUTHORIZE.

THE BOARD OF COMMISSIONERS BY REGULATION MAY AUTHORIZE
SAVINGS AND LOAN ASSOCIATIONS TO INVEST IN ANY OF THE
FOLLOWING TYPES OF INVESTMENTS, SUBJECT TO ITS CONDITIONS.
RULES, AND REGULATIONS;

(1)       ANY PARTICIPATION INTEREST IN A LOAN WITH A
SAVINGS AND LOAN ASSOCIATION LOCATED IN ANY STATE OR WITH AN
AGENCY OR INSTRUMENTALITY OF THE FEDERAL GOVERNMENT IF:

(I)       THE LOAN IS SECURED BY A FIRST LIEN ON
REAL PROPERTY LOCATED IN ANY STATE; AND

(II)      THE PARTICIPATION IS NOT MORE THAN 50
PERCENT OF THE TOTAL AMOUNT OF THE LOAN;

(2)       ANY PARTICIPATION INTEREST WITH A SAVINGS
AND LOAN ASSOCIATION, WHEREVER LOCATED, IF:

(I)       THE LOAN IS SECURED BY A FIRST LIEN ON
REAL PROPERTY WHEREVER LOCATED;

(II)       THE LOAN IS INSURED OR GUARANTEED BY
THE FEDERAL GOVERNMENT OR ANY OF ITS AGENCIES OR
INSTRUMENTALITIES; AND

(III)       THE PARTICIPATION IS NOT MORE THAN
50 PERCENT OF THE TOTAL AMOUNT OF THE LOAN;

(3)       STOCK OR OBLIGATIONS OF A CORPORATION IF:

(I)       ONE OR MORE FINANCIAL INSTITUTIONS OWN
ALL OF THE CORPORATION'S STOCK; AND

(II)       THE CORPORATION'S ACTIVITIES
SUBSTANTIALLY ARE:

1. ORIGINATING, BUYING, SELLING, OR