Servicemen’s Loans

Notwithstanding anything to the contrary contained in this act,

(a)if a portion of a loan secured by real property is guaranteed by the Administrator of Veteran’s Affairs under Title 3 of the "Servicemen’s Readjustment Act of 1944" or any act of Congress supplementary or amendatory thereof, such loan may be in an amount not in excess of the sum of

(1)the amount otherwise permissible under this act plus

(2)the portion of such loan so guaranteed, and

(b)an association may make any loan (whether secured or unsecured, and if secured whether or not secured by first mortgage or first trust deed and irrespective of percentage of loan to value) provided the full amount of such loan is guaranteed by the Administrator of Veteran’s Affairs under Title 3 of the "Servicemen’s Readjustment Act of 1944" or any act of Congress supplementary or amendatory thereof. An association either with or without security may make and purchase loans pursuant to Title 3 of the "Servicemen’s Readjustment Act of 1944" or any act of Congress supplementary or amendatory thereof if the Administrator of Veteran’s Affairs thereunder shall enter into an insurance agreement pursuant thereto whereby he will reimburse such association for losses incurred on such loans up to 15 per cent of the aggregate of loans so made or purchased by it. If the whole or any portion of a loan is guaranteed or COL120106 CH. 130 INVESTMENTS, LOANS AND BORROWING insured by the Administrator or Veteran’s Affairs under Title 3 of the Servicemen’s Readjustment Act of 1944" or any act of Congress supplementary or amendatory thereof, such loan may be made on any terms, plans, practices or procedures now or hereafter authorized or required by the Administrator of Veteran’s Affairs thereunder, provided such terms, plans, practices or procedures are approved by the commissioner as affording reasonable protection to associations and investors.