SECTION 85:25-3-42. Investment in a line of credit to homebuilders

  Subject to federal law, an Oklahoma state-chartered savings and loan association is authorized to invest an amount in a line of credit to home builders, not exceeding the greater of the sum of its surplus, undivided profits, and reserves or 5 percentum of its assets, in loans or in interests therein, the principal purpose of which is to provide financing with respect to what is or is expected to become primarily residential real estate within one hundred miles of their home office or within the State in which such office is located, where:

(1)   the association relies substantially for repayment on the borrower's general credit standing and forecast of income, with or without other security, or

(2)   the association relies on other security as collateral for loans, including but not limited to a guaranty or similar obligation of a third party, and in either case described in (1) or (2) of this subsection, regardless of whether or not the association takes a security interest in real estate (whether or not constituting a first lien) as an additional protection.

[Source: Transferred from 625:10-5-4 (see Editor’s Note at beginning of this Chapter)]