Pennsylvania Statutes Title 7 P.S. Banks and Banking § 6020-101. Powers of associations

(1) To have perpetual existence: to adopt and use a corporate seal, which may be affixed by imprint, facsimile, or otherwise; and to adopt and amend bylaws.

(2) To sue and be sued, complain and defend in courts of law or equity in its corporate name.

(3) To acquire, hold, sell, dispose of and convey real and personal property consistent with its objects and powers on such terms as to the association seem most advantageous; to mortgage, pledge, or lease any real or personal property; and to take property by gifts, devise, or bequest.

(4) To elect or appoint and remove officers, agents and employes of the association and define their duties and fix their compensation, and enter into employment contracts with them for such period or periods, not exceeding five years, as the board of directors shall determine.

(5) An association may borrow from the Federal Home Loan Bank such sums as are permitted by the rules and regulations of the Federal Home Loan Bank and such borrowings shall be in accordance with such rules and regulations as may be prescribed by the Federal Home Loan Bank. An association may borrow from the Pennsylvania Savings Association Insurance Corporation such sums as are permitted by the rules and regulations of the Pennsylvania Savings Association Insurance Corporation and such borrowings shall be in accordance with such rules and regulations as may be prescribed by the Pennsylvania Savings Association Insurance Corporation. An association may borrow from sources individual or corporate, an aggregate amount not in excess of fifty percent of its savings liability. An insured association shall also have the right to issue notes, bonds, debentures and other securities in accordance with such rules and regulations as are prescribed by the Office of Thrift Supervision, the Federal Deposit Insurance Corporation and the Department of Banking. Loans and other evidences of indebtedness may be secured by assets of the association. The pledge of assets may be with recourse. When authorized by statute, an association may also pledge its assets for public fund deposits to the extent the same are not insured.

(6) To qualify as and become a member of a Federal Home Loan Bank.

(7) To become a member of, deal with, or make reasonable payments or contribution to any organization to the extent that such organization assists in furthering or facilitating the association's purposes, powers or community responsibilities, and to comply with any reasonable conditions of eligibility.

(8) To maintain and let safes, boxes or other receptacles for the safekeeping of personal property upon such terms and conditions as may be agreed upon.

(9) To sell money orders, travelers checks and similar instruments as agent for any organization empowered to sell such instruments through agents within this Commonwealth and to receive money for transmission through a Federal Home Loan Bank, to issue credit cards, extend credit in connection therewith, and otherwise engage in or participate in credit card operation and to honor withdrawals by travelers' convenience withdrawals, subject to regulations issued by the department after giving due consideration to the laws and regulations applicable to Federal savings and loan associations.

(10) To act as fiscal agent of the United States, and, when so designated by the Secretary of the Treasury, to perform, under such regulations as he may prescribe, all such reasonable duties as fiscal agent of the United States as he may require; and to act as agent for any instrumentality of the United States and as agent of this Commonwealth or any instrumentality thereof.

(11) To service loans and investments for others, provided that the loans or investments were sold by the association.

(12) To act as trustee of funds or contributions received under a trust plan or instrument prepared in accordance with the requirements of the Self Employed Individuals Tax Retirement Act of 1962, its amendments and supplements,  1 and the regulations promulgated thereunder, and the Employee Retirement System Income Security Act of 1974, its amendments and supplements,  2 and the regulations promulgated thereunder, and as such trustee to invest such funds or contributions only in savings accounts, deposits, obligations and securities of the association which is insured by the Federal Savings and Loan Insurance Corporation pursuant to the provisions of the National Housing Act, its amendments and supplements  3 or by the Pennsylvania Savings Association Insurance Corporation established by the act of April 6, 1979 (P.L. 17, No. 5),  4 entitled “An act establishing the Pennsylvania Savings Association Insurance Corporation and providing for its powers and duties.”

(13) To act as agent for others in any transaction incidental to the operation of its business.

(14) To sell with or without recourse and to purchase mortgages or other loans authorized by this act, including participating interests therein.

(15) Repealed by 1975, July 30, P.L. 105, No. 55, § 3, imd. effective.

(16) Deleted by 1980, July 11, P.L. 638, No. 132, § 3, imd. effective.

(17) To make application for and to obtain insurance of loans pursuant to national housing legislation.

(18) To make contributions and donations for the public welfare or religious, scientific or educational purposes.

(19) To use abbreviations, words or symbols in connection with any document of any nature and on checks, proxies, notices and other instruments which abbreviations, words, or symbols shall have the same force and legal effect as though the respective words and phrases for which they stand were set forth in full for the purposes of all statutes of the Commonwealth and all other purposes.

(20) To enter into a contract with any corporation authorized to transact the business of insurance in this Commonwealth, or to participate in, or become a member of a trust, fund, plan or agreement to provide retirement benefits, death benefits, or disability benefits, and to make such contributions out of the earnings of the association, as may be required to provide these benefits; provided that an association shall send the department a copy of any such contract, trust, fund, plan or agreement and of all changes therein immediately after every adoption and change.

(21) To acquire savings and pay earnings or interest thereon, and to lend and invest its funds as provided in this code.

(22) Notwithstanding any other provision of this act, associations shall have all powers granted to Federal savings and loan associations. Associations may invest in such bonds, capital stock obligations, and other securities that qualify for investment for any purposes by Federal savings and loan associations. The department may by regulation supervise the exercise of any additional powers which associations may acquire by virtue of this subsection.

(23) An insured association issuing mortgage backed bonds may reinvest the accumulated principal payments on the mortgage collateral under regulations prescribed by the Federal Savings and Loan Insurance Corporation, or the Pennsylvania Savings Association Insurance Corporation, or may establish a sinking fund with the accumulated principal payments on the mortgage collateral. Such sinking fund investments shall be in bonds or other interest bearing obligations of the United States, or those for the payment of the principal and interest on which the faith and credit of the United States is pledged.

(24) Upon receiving written approval of the department an association may act as trustee, executor, administrator, guardian, or in any other fiduciary capacity in which banks, trust companies or other corporations are permitted to act. Such approval and the exercise of such powers shall be subject to regulations issued by the department after giving due consideration to the laws and regulations applicable to Federal savings and loan associations. The department shall also promulgate regulations governing the surrender or revocation of such powers. Upon receiving written approval of the department, service corporations may invest in State or Federally chartered corporations which are located in Pennsylvania and which are engaged in trust activities.

(26) Except as provided in clause (27) any loans authorized by this code may be made at such interest, finance charge, rate, and/or terms herein authorized or at any interest, finance charge, rate, and/or terms permitted any other lender regulated by the Commonwealth of Pennsylvania or Federally chartered institutions operating in Pennsylvania and regulated by the Federal Home Loan Bank Board. The department shall have power to issue regulations with respect to amounts, terms and conditions including prepayment penalties and late charges.

(27) The extension of credit through the issuance and use of credit cards may be made at such interest, finance charge, rate and/or terms as may lawfully be permitted State chartered institutions as defined by the act of November 30, 1965 (P.L. 847, No. 356),  5 known as the “Banking Code of 1965” or in accordance with the following: