Borrowings

No association shall be deemed to borrow money through the issuance of investment certificates. No association shall borrow money except as authorized by this chapter. Except with the approval of the commissioner, no association may borrow money for a period of more than one year, nor shall the aggregate amount of all borrowing of any association in force at any one time, excluding borrowing from Federal home loan banks, or other similar Federal agencies, exceed five per cent of the then total assets of such association. No excess loan made to any association, however, shall be invalid or illegal as to the lender. An association, as security for such borrowing, may pledge, hypothecate or otherwise encumber any of the notes, bonds or other securities held by such association, together with the mortgages, trust deeds and other security therefor; provided, that except with the approval of the commissioner, the unpaid principal amount of such notes, bonds or other securities when so pledged, hypothecated or otherwise encumbered shall not exceed two hundred per cent of the amount borrowed by such association.