Pennsylvania Statutes Title 7 P.S. Banks and Banking § 6020-158. Loans for property repair, alteration and improvement

(a) When such loans are insured or will be insured under Title I of the National Housing Act  1 they may be granted in any amount and on any terms permitted by that act or the regulations issued thereunder.

(b) When any such loan is not insured under Title I of the National Housing Act the principal amount thereof shall not exceed the amount authorized under Title I of the National Housing Act and the loan shall be evidenced by a judgment note or other written evidence of debt requiring repayment in regular monthly installments over a period not exceeding that amount authorized under Title I of the National Housing Act with annual interest at a rate not exceeding the sum of the authorized interest rate for loans insured under Title I of the National Housing Act plus the annual rate for insurance on loans insured under Title I of the National Housing Act or creditor insurance applied to the loan on the declining balance except that loans over five thousand dollars ($5,000) shall be recorded or filed so as to create a lien position in the county in which the real estate is located. A loan is authorized under this section only if the association prepares and retains in its files written evidence that the loan is of the type that would be insurable under Title I of the National Housing Act. Such written evidence shall be retained in the files of the association while the loan is outstanding and for a period of one year thereafter. The note or other written evidence of debt shall contain a provision that if the borrower shall sell the premises or assign his leasehold interest therein or remove therefrom any improvements described in the security agreement the entire balance remaining due on the loan shall immediately become due and payable. In addition to the interest herein authorized an association may make the following charges in connection with said loan:

(c) The aggregate amount of all such loans held by any one association at one time with or without Title I insurance shall not exceed twenty percent of its total assets. Any such loan made without Title I insurance shall also conform to rules and regulations which may be prescribed from time to time by the department.