HARRY HUGHES, Governor                                           1091

OR A RELATED ENTITY IS NOT PROHIBITED TO ANY CONTROLLING PERSON.
DIRECTOR. OFFICER. OR EMPLOYEE OF AN ASSOCIATION OR A MEMBER OF
ANY OF THEIR IMMEDIATE FAMILIES IF THE LOAN IS:

(I) SECURED BY THE BORROWER'S PRINCIPAL
RESIDENCE;

(II) SECURED BY THE BORROWER'S SAVINGS ACCOUNT
IN THE ASSOCIATION; SUBJECT TO THE REQUIREMENT THAT THE LOAN
SECURED BY A SAVINGS ACCOUNT DOES NOT EXCEED THE WITHDRAWAL VALUE
OF THE ACCOUNT; OR

(III) A LOAN THAT IS SECURED BY THE BORROWER'S
PRINCIPAL RESIDENCE THAT IS FOR CONSTRUCTING, ADDING TO,
IMPROVING, ALTERING, REPAIRING, EQUIPPING, OR FURNISHING THE
PRINCIPAL RESIDENCE OF THE BORROWER.

(2) SUBJECT TO THE PROVISIONS OF PARAGRAPH (4) OF

THIS SUBSECTION, A CONSUMER LOAN BY A SAVINGS AND LOAN
ASSOCIATION OR RELATED ENTITY IS NOT PROHIBITED TO ANY EMPLOYEE
OF AN ASSOCIATION OR A MEMBER OF THEIR IMMEDIATE FAMILIES.

(3) WITH RESPECT TO LOANS PERMITTED UNDER PARAGRAPH
(1)(I) AND (IV) OF THIS SUBSECTION, THE LOAN:

(I) MAY NOT EXCEED 80 PERCENT OF THE APPRAISED
VALUE OF THE BORROWER'S PRINCIPAL RESIDENCE;

(II) MAY EXCEED 80 PERCENT OF THE APPRAISED
VALUE IF:

1. THE DIFFERENCE BETWEEN THAT PERCENTAGE
AND THE TOTAL AMOUNT OF THE LOAN DOES NOT EXCEED 15 PERCENT; AND

2. THE DIFFERENCE IS INSURED BY AN AGENCY
OF THE FEDERAL GOVERNMENT OR A PRIVATE MORTGAGE INSURANCE

COMPANY.

(I) SECURED BY THE BORROWER'S PRINCIPAL
RESIDENCE. INCLUDING A PRINCIPAL RESIDENCE UNDER CONSTRUCTION; OR

(II) SECURED BY THE BORROWER'S SAVINGS ACCOUNT
IN THE ASSOCIATION, SUBJECT TO THE REQUIREMENT THAT THE LOAN
SECURED BY A SAVINGS ACCOUNT DOES NOT EXCEED THE WITHDRAWAL VALUE
OF THE ACCOUNT.

(2) SUBJECT TO THE PROVISIONS OF PARAGRAPH 14) OF
THIS SUBSECTION, A CONSUMER LOAN BY A SAVINGS AND LOAN
ASSOCIATION OR RELATED ENTITY IS NOT PROHIBITED TO ANY EMPLOYEE
OF AN ASSOCIATION OR A MEMBER OF THE EMPLOYEE'S IMMEDIATE FAMILY.

(3) WITH RESPECT TO LOANS PERMITTED UNDER PARAGRAPH
(1)(I) OF THIS SUBSECTION. THE LOAN OR LOANS IN THE AGGREGATE: