Security for Loans

For each loan made by a savings and loan association a note or notes or other obligation or obligations expressing a rate of interest must COL120106 CH. 130 INVESTMENTS, LOANS AND BORROWING be executed by the borrower and must be secured, except as otherwise permitted under Section 130120 or 130121,

(a)by a first mortgage or first trust deed upon fee title to real property or upon a leasehold interest in real property under a lease having a period of not less than fifty years to run from the date of the loan,

(b)by the pledge of shares or investment certificates of such association and/or

(c)by the pledge of bonds or other collateral. Two or more mortgages or trust deeds, all owned or purchased by the same association, shall collectively be deemed a first mortgage or a first trust deed, as the case may be, for all the purposes of this act, if they create successive liens or charges upon the same real property or leasehold interest and if one thereof is in fact a first mortgage or first trust deed. In lieu of making two or more separate loans, each secured by mortgage, trust deed or pledge of one or more properties or leasehold interests or securities in amounts permitted by this act, an association may make a single loan secured by all such properties, by all such leasehold interest and/or by all such securities, if the principal amount of such single loan does not exceed the aggregate of the principal amounts which would be permitted for such separate loans. Notwithstanding anything to the contrary in this act, any security, whether or not the same be a first encumbrance or charge, on property, either improved or unimproved and either real or personal, may be taken at any time and without limit as additional security for any loan held by such association.