Skip to main content
Find a Lawyer

Pennsylvania Statutes Title 7 P.S. Banks and Banking § 6020-157. Right to make, purchase, sell and participate in mortgages and other 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The Savings Association Code of 1967, 7 P.S. §§ 6020-1 to 6020-254, has been repealed by Act 2013, June 24, P.L. 67, No. 23, §§ 1 to 107, effective in one year [June 24, 2014], but remains in full force and effect as to transactions and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) An association may purchase and sell loans and participations in loans and participate with other lenders in originating and making any type of loan that it is authorized to make under the provisions of this act.

(b) In addition to the authority set forth in sections 901 and 910 of this article,  1 an association shall have the right to make and purchase mortgages or participations in mortgages secured by property outside its regular lending area, subject to the following conditions:

(1) Deleted.

(2) Deleted.

(3) No mortgage shall be made nor shall a mortgage or participation interest in a mortgage be purchased unless the mortgage is one that the association could make under the provisions of this act if the security property were within its regular lending area, provided, however, that if the mortgage which is being purchased or in which a participation is being purchased is in a state other than the Commonwealth of Pennsylvania and mortgage guarantee insurance is required, the insurer shall be a company that is authorized to do business in the state in which the real property which is security for the mortgage loan is situated.

(4) The dollar amount that an association may have invested in mortgages and participation loans outside its regular lending area shall at no time exceed fifty percent of the assets of the association. This limitation shall not apply to loans insured or guaranteed in whole or in part by the United States or any instrumentality thereof or if there is a commitment to so insure or guarantee.

(5) Such further conditions as the department may prescribe by regulation, giving primary consideration to the Declaration of Purposes as provided under section 103 of this act.  2

1 7 P.S. §§ 6020-141 and 6020-150.
2 7 P.S. § 6020-3.
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 § 6020-157. Right to make, purchase, sell and participate in mortgages and other loans - last updated January 01, 2025 | https://codes.findlaw.com/pa/title-7-ps-banks-and-banking/pa-st-sect-7-6020-157/

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