HARRY HUGHES, Governor

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(II) THE TOTAL OF THESE LOANS AND INVESTMENTS
MAY NOT EXCEED 20 PERCENT OF THE ASSETS OF THE ASSOCIATION.

(2) LOANS TO DEALERS IN CONSUMER GOODS TO FINANCE
INVENTORY AND FLOOR PLANNING SHALL BE TREATED AS COMMERCIAL
LOANS.

(C)  COMMERCIAL LOANS.

AN ASSOCIATION MAY INVEST IN, SELL, PURCHASE, PARTICIPATE
IN, OR OTHERWISE DEAL IN LOANS FOR COMMERCIAL, CORPORATE,
BUSINESS, OR AGRICULTURAL PURPOSES, BUT ONLY IF AT ANY ONE TIME
THE TOTAL INVESTMENT MADE UNDER THIS SECTION DOES NOT EXCEED 10
PERCENT OF THE ASSOCIATION'S ASSETS.

(D)  RIGHT TO PARTICIPATE IN MORTGAGES.

(1)  AN ASSOCIATION MAY PARTICIPATE IN MORTGAGES AND
PARTICIPATE WITH OTHER LENDERS IN ORIGINATING AND MAKING ANY TYPE
OF MORTGAGE LOAN THAT THE ASSOCIATION IS AUTHORIZED TO MAKE UNDER
THE PROVISIONS OF § 9-419 OF THIS SUBTITLE.

(2)  THE AMOUNT THAT AN ASSOCIATION MAY HAVE INVESTED

IN PARTICIPATION LOANS PRIVATELY PLACED MORTGAGE BACKED

SECURITIES CANNOT EXCEED 10 PERCENT OF THE ASSOCIATION'S ASSETS.

(E)  ACQUISITION, DEVELOPMENT AND CONSTRUCTION LOANS.

(1)  EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
SUBSECTION, A LOAN MADE FOR THE PURPOSE OF ACQUIRING REAL ESTATE,
FINANCING THE DEVELOPMENT OF REAL ESTATE, THE CONSTRUCTION OF
STRUCTURES ON REAL ESTATE, OR THE REHABILITATION OF REAL ESTATE
IS SUBJECT TO THE PROVISIONS OF THIS SECTION AND REGULATIONS
ADOPTED BY THE DIVISION DIRECTOR.

(2)  THIS SUBSECTION DOES NOT APPLY TO A LOAN MADE FOR
THE PURCHASE OF REAL ESTATE THAT HAS A OR WILL HAVE NOT MORE THAN
ONE DWELLING DESIGNED PRINCIPALLY AS A RESIDENCE WITH
ACCOMMODATIONS FOR NOT MORE THAN 4 FAMILIES.

(3)  THE LOANS MAY NOT EXCEED THE LOAN-TO-VALUE RATIOS
PROVIDED BY REGULATION.

(4)  (I) THE DIVISION DIRECTOR SHALL ADOPT REGULATIONS
ESTABLISHING TERMS FOR THE REPAYMENT OF LOANS AUTHORIZED BY THIS
SUBSECTION.

(II)  THE REGULATIONS ADOPTED BY THE DIVISION
DIRECTOR MAY NOT BE LESS RESTRICTIVE THAN THOSE APPLICABLE TO
FEDERALLY CHARTERED SAVINGS AND LOAN ASSOCIATIONS.

(III)  UNLESS OTHERWISE PROVIDED BY REGULATIONS
ADOPTED BY THE DIVISION DIRECTOR, THE LOANS SHALL BE REPAYABLE
WITHIN A TERM THAT IS APPLICABLE TO FEDERALLY CHARTERED SAVINGS
AND LOAN ASSOCIATIONS.