Pennsylvania Statutes Title 7 P.S. Banks and Banking § 6020-148. Development loans

(a) An association may lend on the security of developed building lots or sites, or for the acquisition and development of land into building lots or sites not in excess of seventy-five percent of the fair market value of the real estate security as of the date of the advancement of the funds and such loans may be combined with construction loans and permanent loans, subject to the following conditions:

(b) An association may lend not over seventy percent of the fair market value of real estate security for the acquisition and development or the development of land for such purposes as the department may by regulation authorize.

(c) The total of all disbursed unrepaid loans under this section shall not at any time exceed ten percent of the assets of the association.

(d) Notwithstanding the provisions of subsections (a) and (b) of this section an association may lend to an individual on the security of a developed building lot or site designed for the erection of his permanent one family residence, without any requirement for the commencement of construction, not in excess of ninety percent of the fair market value, provided the security document shall require the borrower to repay the loan in a period not longer than fifteen years and shall require equal monthly payments throughout said fifteen-year period sufficient to result in an amortization of not less than thirty percent of the principal amount of the loan at the expiration of fifteen years.