Pennsylvania Statutes Title 7 P.S. Banks and Banking § 6020-143. Over eighty percent loans on one family residential properties

(a) Repealed by 1974, Dec. 27, P.L. 1012, No. 329, § 2.

(b) The real estate shall be improved with a structure designed for residential use for one family or the loan is made to finance the construction of a structure designed for residential use for one family. Where the loan is made to finance construction, there shall not be disbursed on said loan in excess of eighty percent of the fair market value of the real estate unless construction has been fully completed and title is in the name of the owner who is occupying or will occupy the home as his residence or unless the owner is the buyer who has executed an agreement with the association assuming and agreeing to pay the mortgage.

(c) The principal of the obligation of the loan shall not exceed thirty thousand dollars ($30,000) unless the department by regulation approves the granting of loans under this subsection in amounts greater than thirty thousand dollars ($30,000).

(d) The principal amount of all loans made under this section shall not exceed twenty percent of the association's assets. In calculating the said twenty percent there shall be deducted all loans on which the unpaid balance is less than eighty percent of the fair market value at the date of the making of the loan. Said twenty percent shall be in addition to any percentage of loans permitted to be invested in any other type of mortgage. The limitations of this subsection shall not apply to any loan during the time that at least the top twenty percent of said loan is insured with a reputable private mortgage guarantee company licensed to do business in the Commonwealth of Pennsylvania and approved by the department. The said limitation shall not apply when the mortgage qualifies in all respects as an eighty percent or less loan.

(e) Loans in excess of the percentage herein authorized may be made on one family residential properties in such amounts and in such percentages and on such conditions as the department may by regulation authorize.