Pennsylvania Statutes Title 7 P.S. Banks and Banking § 6020-2. Definitions

(1) “Articles,” the original articles of incorporation, any or all amendments thereto, articles of merger, consolidation, conversion or dissolution.

(2) “Assets,” all the property and rights of every kind of the association.

(3) “Association,” any mutual or permanent reserve fund stock savings association organized under this act and includes also any building and loan association or savings and loan association heretofore organized under or by virtue of any other act or law of this Commonwealth.

(4) “Attorney,” an attorney at law who is, or is a member of the firm which is, regularly retained as counsel for an association.

(4.1) “Authorized capital,” the permanent reserve fund stock authorized in an association's articles.

(5) “Branch,” an office or place of business other than the principal place of business of a savings association for the transaction of any business of the association except an agency existing at the effective date of this act in which an association had authorized any corporation or person to collect dues, interest, premiums and fines in any city, borough or township in the Commonwealth other than a place of business of the association.

(5.1) “Capital,” the sum of the par value of the permanent reserve fund stock of a savings association issued and outstanding.

(5.2) “Capital deposit,” the contributions paid by a savings association to the Pennsylvania Savings Association Insurance Corporation's central insurance fund, consisting of capital contributions by each member savings association in an amount equal to not less than two percent of the total savings on deposit with each member.

(5.3) “Capital surplus,” the amount paid to an association for the purchase of permanent reserve fund stock in excess of its par value.

(6) “Collateral,” personal property pledged to secure payment of an obligation.

(7) “Department,” the Department of Banking of this Commonwealth.

(8) “Evidence of indebtedness,” a bond, note or similar instrument evidencing obligation of a borrower or debtor.

(9) “Fair market value,” the value determined by an appraisal made in accordance with regulations to be issued by the Department of Banking. In the event such regulations are not issued the appraisal may be by two or more members of the board of directors or officers of the association or by an independent appraiser, who is acceptable to the department. Said appraisal shall be retained in the files of the association.

(9.1) “Federal savings and loan association,” a savings and loan association or savings bank chartered by the Federal Home Loan Bank Board under section 5 of the Home Owners' Loan Act of 1933 (12 U.S.C. § 1461 et seq., 48 Stat. 128).

(10) “Housing facilities for the aging,” housing accommodations, individual or multiple, designed for the purpose of providing accommodations for occupancy by aging persons or providing rest homes or nursing homes existing, constructed or altered, so as to be suitable primarily for the occupancy of persons of fifty-five years of age and older and limited principally to the occupancy of such persons.

(11) “Incorporator,” a signer of the original articles of incorporation.

(12) “Insured association,” an association whose savings are insured as provided by the National Housing Act of 1934, approved the twenty-seventh day of June, 1934, its amendments and supplements  1 or by the Pennsylvania Savings Association Insurance Corporation established by the act of April 6, 1979 (P.L. 17, No. 5), entitled, “An act establishing the Pennsylvania Savings Association Insurance Corporation and providing for its powers and duties”. 2

(13) “Leasehold interest,” a lease upon real estate which is security for the payment of an obligation and which by its terms as a lease has a period of not less than five years to run after the date of the maturity of the obligation, or is renewable for a period terminating not less than five years after the date of the maturity of the obligation. It must also provide that the right of renewal of the lease may be exercised by the mortgagee until the obligation is discharged.

(14) “Loans on the security of savings accounts,” loans which are secured pursuant to the provisions of this act by a note of the borrower and the pledge of a savings account.

(15) “Loss reserves,” the aggregate amount of the reserves allocated by an association for the sole purpose of absorbing losses.

(16) “Maturity date,” the date on which the last payment required to be made to retire an indebtedness or obligation is due and payable.

(17) “Member,” a person holding a savings account of a mutual association, a person owning one or more shares of permanent reserve fund stock of a permanent reserve fund stock association and a person borrowing on the security of a mortgage or purchasing property upon which a mortgage lien is held by a mutual association. A joint and survivorship relationship whether savers or borrowers constitute a single membership.

(17.1) “Mortgage backed bonds,” any borrowing (except borrowings from Federal Home Loan Banks) secured in whole or in part by one or more real estate loans.

(18) “Mortgage loans,” loans which are secured pursuant to the provisions of this act with a bond or note or other evidence of indebtedness of the borrower, and by a mortgage on real estate in fee simple or leasehold.

(19) “Net worth,” in the case of a mutual association, the sum of the association's general reserves, surplus and, to the extent they would be includable as regulatory capital for an association insured by the Federal Savings and Loan Insurance Corporation, or as permitted by the department, mutual capital certificates and subordinated debt securities; or, in the case of a permanent reserve fund stock association, the sum of the association's general reserves, capital, capital surplus and, to the extent they would be includable as regulatory capital for an association insured by the Federal Savings and Loan Insurance Corporation, or as permitted by the department, subordinated debt securities.

(19.1) “Permanent reserve fund stock,” the shares of stock issued by an association whose articles permit the issuance of stock which will share in the earnings of the association and for which there is set up from the money paid to the association for such stock a capital surplus. The total amount paid to the association for such stock and all earnings credited to it shall be a secondary fund for securing the payment of the savings liability of the association.

(19.2) “PSAIC,” the Pennsylvania Savings Association Insurance Corporation established by the act of April 6, 1979 (P.L. 17, No. 5),  2 referred to as the Pennsylvania Savings Association Insurance Corporation Act.

(20) “Regular lending area,” this Commonwealth and within fifty miles of the boundary thereof or within one hundred miles of the main office of an association without regard to the Commonwealth boundary lines.

(21) “Resulting association,” the association which continues after a merger or after the conversion of a Federal savings and loan association or a savings bank to an association.

(22) “Savings account,” the amount paid in cash to an association for deposit plus all earnings or interest credited thereto, less all withdrawals, redemptions and charges.

(23) “Savings bank,” a corporation existing under the laws of this Commonwealth as a savings bank and authorized under the Banking Code of 1965  3 to receive savings deposits.

(24) “Savings liability,” the aggregate amount of savings accounts of members including earnings credited to such accounts less redemptions and withdrawals.

(25) “Service corporation,” a corporation organized under the laws of the Commonwealth of Pennsylvania the entire capital stock of which corporation is available for purchase only by savings associations organized and existing under the laws of the Commonwealth of Pennsylvania and by Federal savings and loan associations having their home office in the Commonwealth of Pennsylvania and by savings banks.

(25.1) “Shares,” the units into which the permanent reserve fund stock is divided.

(25.2) “Subscriber,” a person who subscribes to shares of the permanent reserve fund stock.

(26) “Surplus,” the earnings and profits of an association which have not been allocated to savings accounts or to a loss reserve.

(27) “Withdrawal value of a savings account,” the credit balance of a savings account at any particular time as shown by the books of an association.

(28) “Travelers' convenience withdrawals,” the right of an account holder of an association as a convenience when fifty miles or more from his or her principal residence to make a withdrawal from his or her regular savings account at the office of a financial institution, the accounts of which are insured by the Federal Savings and Loan Insurance Corporation or the Pennsylvania Savings Association Insurance Corporation.

(29) “Corporate debt security,” a marketable obligation evidencing the indebtedness of any corporation in the form of a bond, note and/or debenture which is commonly regarded as debt security and is not predominantly speculative in nature. A security is marketable if it may be sold with reasonable promptness at a price which corresponds reasonably to its fair value.