Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 14 - SAVINGS BANK LAW (§§ 81-14-1 — 81-14-501) › Article 7 - LOANS AND INVESTMENTS (§§ 81-14-301 — 81-14-321) › Section 81-14-301 - Investment in loans

Subject to the regulations of the commissioner, a savings bank may loan funds as follows:
(a)
On the security of deposit accounts, but no such loan shall exceed the withdrawal value of the pledged account.
(b)
On the security of real estate:
(i)
Of a value, determined in accordance with regulations adopted by the commissioner, sufficient to provide good and ample security for the loan;
(ii)
With a fee simple title or a leasehold title having a duration of not less than ten (10) years beyond the maturity of the loan;
(iii)
With the title established by evidence of title as is consistent with sound lending practices in the locality;
(iv)
With the security interest in real estate evidenced by an appropriate written instrument and the loan evidenced by a note, bond or similar written instrument; a loan on the security of the whole of the beneficial interest in a land trust satisfies the requirements of this section if the title to the land is held by a corporate trustee and if the real estate held in the land trust meets the other requirements of this section.
(c)
For the purpose of repair, improvement, rehabilitation, furnishing or equipment of real estate.
(d)
Through the participation of loans that are of a type that the savings bank would be authorized to make in accordance with this section and its bylaws. Subject to regulations by the commissioner, participants shall be limited to federally insured financial institutions and their subsidiaries, and instruments of, or corporations owned wholly or in part by, the United States or this state.
(e)
Through the purchase of loans, wholly or in part, that at the time of purchase, the savings bank could make in accordance with this section and its bylaws.
(f)
Through the purchase of installment contracts for the sale of real estate and title thereto that is subject to the contracts, but in each instance only if the savings bank, at the time of purchase, could make a mortgage loan of the same amount for the same length of time on the security of real estate.
(g)
Through loans guaranteed or insured, wholly or in part, by the United States or any of its instrumentalities.
(h)
Subject to regulations adopted by the commissioner, through secured or unsecured loans for business, corporate, commercial or agricultural purposes; provided that the total of all loans granted under this paragraph shall not exceed fifteen percent (15%) of the savings bank's total assets.
(i)
For the purpose of mobile home financing subject, however, to the regulation of the commissioner.
(j)
Through loans secured by the cash surrender value of any life insurance policy or any collateral that would be a legal investment under the terms of this chapter if made by a savings bank.
(k)
Any provisions of this chapter to the contrary, notwithstanding and subject to the commissioner's regulations, any savings bank may make any loans or investment or engage in any activity that it could make or engage in if it were organized under state law as a savings and loan association or under federal law as a federal savings and loan association or federal savings bank.
(l)
A savings bank may issue letters of credit or other similar arrangements only as provided by regulation of the commissioner with regard to aggregate amounts permitted, take out commitments for standby letters of credit, underlying documentation and underwriting, legal limitations on loans of the savings bank, control and subsidiary records, and other procedures deemed necessary by the commissioner.
(m)
For the purpose of secured and unsecured financing of personal and family credits, subject to the regulations of the commissioner.
(n)
For the purpose of financing primary, secondary, undergraduate or postgraduate education.
(o)
Through revolving lines of credit on the security of a first or junior lien on the borrower's personal residence, based primarily on the borrower's equity, the proceeds of which may be used for any purpose.
(p)
As secured or unsecured credit to cover the payment of checks, drafts or other funds transfer orders in excess of the available balance of an account on which they are drawn, subject to the regulations of the commissioner.
Laws, 1992, ch. 489, § 73; reenacted without change, Laws, 1997, ch. 364, § 75; reenacted without change, Laws, 2001, ch. 457, § 75, eff. 7/1/2001.