National Housing Act Loans and Insurance

An association

(a)either with or without security, may make loans, advance credit, and purchase obligations representing loans and advances of credit, pursuant to Title 1 of the National Housing Act, as amended, if the Federal Housing Administrator shall insure such association against losses which it may sustain as a result of such loans, advances of credit COL120106 CH. 130 INVESTMENTS, LOANS AND BORROWING and purchases made by such association for such purposes, to the extent of 20 percent of the total amount of the loans, advances of credit and purchase made by such association for such purposes on and after the date of the enactment of the National Housing Act Amendments of 1938;

(b)may make loans upon the security of improved real property pursuant to the provisions of this section and pursuant to Title 2 and Title 6 of the National Housing Act, as amended, if the Federal Housing Administration pursuant to Title 2 or Title 6 have insured, or shall made a commitment to insure, such association against losses of principal which it may sustain as a result of such loans; and

(c)may secure insurance pursuant to said National Housing Act. No law of this territory prescribing the nature, amount or form of security or requiring security upon which loans or advances of credit may be made or prescribing or limiting the period for which loans or advances of credit may be made, shall be deemed to apply to loans, advances of credit or purchases made pursuant to this section.