Limitation on Loan Commitments

Except with the consent of the Commissioner, no association shall commit itself to make any loans for amounts in excess of the total of

(a)amount of cash available for loan purposes,

(b)amount of cash which COL120106 CH. 130 INVESTMENTS, LOANS AND BORROWING can readily be realized upon the sale of redemption of investments made pursuant to § 130102 of this Act.

(c)amount of credit available for loan purposes from the Federal Home Loan Bank or other financial institutions. Except with the consent of the Commissioner, no association shall hereafter make any construction loan or loans to any one borrower, or under any one transaction, or applicable to any one project, which loan or loans are in excess of whichever of the following is the lesser:

(a)ten percent (10%) of its total assets, or

(b)an amount equal to the sum of its capital, surplus, undivided profits, loan reserve and federal insurance reserve, and such other reserves as the Commissioner may prescribe; provided however, that this limitation shall not apply to any of the following:

(a)Loans upon which associations hold commitments for insurance by the Federal Housing Administrator, pursuant to § 130120 of this Act, or

(b)Loans which are partially guaranteed by, or insured by, the Administrator of Veterans Affairs, pursuant to § 130121 of this Act.

(c)Loans which have been repaid or sold without recourse.