Skip to main content
Find a Lawyer

Pennsylvania Statutes Title 7 P.S. Banks and Banking § 6020-153. Construction loans

Current as of January 01, 2025 | Updated by Findlaw Staff

<The Savings Association Code of 1967, 7 P.S. §§ 6020-1 to 6020-254, has been repealed by Act 2013, June 24, P.L. 67, No. 23, §§ 1 to 107, effective in one year [June 24, 2014], but remains in full force and effect as to transactions and proceedings commenced prior to said repeal, pursuant to Act 2013-23, § 109.>

(a) Any mortgage herein authorized may be made for the acquisition and construction or the construction of a structure as hereinbefore classified for loans on improved real estate. The security documents shall specify the terms upon which advances are to be made on such construction loan and it may be combined with a permanent loan to continue after completion of the construction.

(b) An association may also make construction loans without security. In such loans the investment shall not exceed the greater of:

(1) The sum of its surplus, undivided profits, and reserves; or

(2) Five percent of the assets of the association.

(c) The principal purpose of such construction loans without security, as provided in subsection (b), shall be to provide financing with respect to what is, or is expected to become primarily residential real estate where:

(1) the association relies substantially for repayment on the borrower's general credit standing and forecast of income without other security; or

(2) the association relies on other assurances for repayment, including, but not limited to a guarantee or similar obligation of a third party.

(d) Investments in construction loans without security shall not be included in any percentage of assets or other percentage referred to in this act.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Pennsylvania Statutes Title 7 P.S. Banks and Banking § 6020-153. Construction loans - last updated January 01, 2025 | https://codes.findlaw.com/pa/title-7-ps-banks-and-banking/pa-st-sect-7-6020-153/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard