PRINTER'S NO. 495
No. 446 Session of 1975
INTRODUCED BY O'DONNELL, IRVIS, ROMANELLI, LEDERER,
M. E. MILLER JR., REED, LEHR, RICHARDSON, HAMMOCK, BLACKWELL,
ROSS, RAPPAPORT AND COHEN, FEBRUARY 18, 1975
REFERRED TO COMMITTEE ON BUSINESS AND COMMERCE,
FEBRUARY 18, 1975
AN ACT
1 Amending the act of December 14, 1967 (P.L.746, No.345),
2 entitled "An act relating to and regulating the business of
3 savings associations heretofore designated under other acts
4 and special charters variously as building and loan
5 associations and savings and loan associations; defining the
6 rights, powers, duties, liabilities, and immunities of such
7 associations; affecting persons engaged in the business of
8 savings associations; affecting the members, account holders
9 and borrowers of such associations; affecting Federal savings
10 and loan associations whose principal office is located in
11 the Commonwealth; prohibiting the transaction of business in
12 this Commonwealth by foreign savings associations; conferring
13 powers and imposing duties on certain departments and
14 officers of the Commonwealth and on the courts, recorders of
15 deeds; creating a Savings Association Board and defining its
16 powers and duties; prohibiting certain actions and imposing
17 penalties, and repealing certain acts," requiring certain
18 residential mortgage investments.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 Section 1. Section 901, act of December 14, 1967 (P.L.746,
22 No.345), known as the "Savings Association Code of 1967," is
23 amended to read:
24 Section 901. Loans on Security of Real Estate.--An
25 association may make a loan or participate in making loans or
1 buy or sell participations in loans secured by a mortgage which
2 is a first lien on real estate, or if the association holds all
3 prior liens on the real estate, located in the regular lending
4 area of the association, owned by the borrower in fee or in
5 which he has a leasehold interest. An association shall not at
6 any time retain a mortgage loan which is not secured by a
7 mortgage which is a first lien on the real estate unless the
8 association owns all prior liens. The total of all liens held by
9 an association against real estate shall not exceed the maximum
10 percentages of fair market value set forth in the subsections of
11 this article. The loan shall be evidenced by a bond, note or
12 other evidence of indebtedness and shall be made upon the
13 security, terms and conditions and in the amount set forth in
14 this article for such loan. Mortgage loans and participations
15 shall be primarily on one to four family residential properties.
16 If an association makes loans secured by liens on real estate
17 then two percent of the total real estate loans made by the
18 association during the previous year shall be allocated for
19 loans not exceeding twelve thousand dollars ($12,000) each which
20 will be secured by liens on residential real estate located in
21 the Commonwealth if the association receives applications for
22 the loans so allocated by September 1. Of the two percent so
23 allocated, one-third shall be allocated to loans of eight
24 thousand dollars ($8,000) or less, one-third for loans between
25 eight thousand one dollars ($8,001) and ten thousand dollars
26 ($10,000) and the balance for loans between ten thousand one
27 dollars ($10,001) and twelve thousand dollars ($12,000).
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