12 C.F.R. Subpart A—Lending and Investment Powers for Federal Savings Associations
Title 12 - Banks and Banking
Pursuant to section 5(c) of the Home Owners' Loan Act (“HOLA”), 12 U.S.C. 1464(c), a Federal savings association may make, invest in, purchase, sell, participate in, or otherwise deal in (including brokerage or warehousing) all loans and investments allowed under section 5(c) of the HOLA including, without limitation, the following loans, extensions of credit, and investments, subject to the limitations indicated and any such terms, conditions, or limitations as may be prescribed from time to time by OTS by policy directive, order, or regulation:
Endnotes 1. All references are to section 5 of the Home Owners' Loan Act (12 U.S.C. 1464) unless otherwise indicated. 2. For purposes of determining a Federal savings association's percentage of assets limitation, investment in commercial paper and corporate debt securities must be aggregated with the Federal savings association's investment in consumer loans. 3. A Federal savings association may invest in commercial paper and corporate debt securities, which includes corporate debt securities convertible into stock, subject to the provisions of §560.40 of this part. Amounts in excess of 30% of assets, in the aggregate, may be invested only in obligations purchased by the association directly from the original obligor and for which no finder's or referral fees have been paid. 4. The 2% of assets limitation is a sublimit for investments within the overall 5% of assets limitation on community development loans and investments. The qualitative standards for such loans and investments are set forth in HOLA section 5(c)(3)(A) (formerly 5(c)(3)(B), as explained in an opinion of the OTS Chief Counsel dated May 10, 1995 (available at www.ots.treas.gov)). 5. Amounts in excess of 30% of assets, in the aggregate, may be invested only in loans made by the association directly to the original obligor and for which no finder's or referral fees have been paid. A Federal savings association may include loans to dealers in consumer goods to finance inventory and floor planning in the total investment made under this section. 6. While there is no statutory limit on certain categories of loans and investments, including credit card loans, home improvement loans, education loans, and deposit account loans, OTS may establish an individual limit on such loans or investments if the association's concentration in such loans or investments presents a safety and soundness concern. 7. A Federal savings association may engage in leasing activities subject to the provisions of §560.41 of this part. 8. This 1% of assets limitation applies to the aggregate outstanding investments made under the Foreign Assistance Act and in the capital of the Inter-American Savings and Loan Bank. Such investments may be made subject to the provisions of §560.43 of this part. 9. A home (or residential) loan includes loans secured by one-to-four family dwellings, multi-family residential property, and loans secured by a unit or units of a condominium or housing cooperative. 10. A Federal savings association may make home loans subject to the provisions of §§560.33, 560.34, and 560.35 of this part. 11. Loans secured by savings accounts and other time deposits may be made without limitation, provided the Federal savings association obtains a lien on, or a pledge of, such accounts. Such loans may not exceed the withdrawable amount of the account. 12. A Federal savings association may only invest in these loans if they are secured by obligations of, or by obligations fully guaranteed as to principal and interest by, the United States or any of its agencies or instrumentalities, the borrower is a financial institution insured by the Federal Deposit Insurance Corporation or is a broker or dealer registered with the Securities and Exchange Commission, and the market value of the securities for each loan at least equals the amount of the loan at the time it is made. 13. If the wheels and axles of the manufactured home have been removed and it is permanently affixed to a foundation, a loan secured by a combination of a manufactured home and developed residential lot on which it sits may be treated as a home loan. 14. Without regard to any limitations of this part, a Federal savings association may make or invest in the fully insured or guaranteed portion of nonresidential real estate loans insured or guaranteed by the Economic Development Administration, the Farmers Home Administration, or the Small Business Administration. Unguaranteed portions of guaranteed loans must be aggregated with uninsured loans when determining an association's compliance with the 400% of capital limitation for other real estate loans. 15. This authority is limited to investments in open-end management investment companies that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940. The portfolio of the investment company must be restricted by the company's investment policy (changeable only if authorized by shareholder vote) solely to investments that a Federal savings association may, without limitation as to percentage of assets, invest in, sell, redeem, hold, or otherwise deal in. Separate and apart from this authority, a Federal savings association may make pass-through investments to the extent authorized by §560.32 of this part. 16. A Federal savings association may invest in service corporations subject to the provisions of part 559 of this chapter. 17. This category includes obligations issued by any state, territory, or possession of the United States or political subdivision thereof (including any agency, corporation, or instrumentality of a state or political subdivision), subject to §560.42 of this part. 18. A Federal savings association may invest in state housing corporations subject to the provisions of §560.121 of this part. 19. Payments on accounts in excess of the account balance (overdrafts) on commercial deposit or transaction accounts shall be considered commercial loans for purposes of determining the association's percentage of assets limitation. [66 FR 65825, Dec. 21, 2001, as amended at 68 FR 75109, Dec. 30, 2003; 70 FR 76675, Dec. 28, 2005] (a) If a loan or other investment is authorized under more than one section of the HOLA, as amended, or this part, a Federal savings association may designate under which section the loan or investment has been made. Such a loan or investment may be apportioned among appropriate categories, and may be moved, in whole or part, from one category to another. A loan commitment shall be counted as an investment and included in total assets of a Federal savings association for purposes of calculating compliance with HOLA section 5(c)'s investment limitations only to the extent that funds have been advanced and not repaid pursuant to the commitment. (b) Loans or portions of loans sold to a third party shall be included in the calculation of a percentage-of-assets or percentage-of-capital investment limitation only to the extent they are sold with recourse. (c) A Federal savings association may make a loan secured by an assignment of loans to the extent that it could, under applicable law and regulations, make or purchase the underlying assigned loans. (a) A federal savings association (“you”) may make pass-through investments. A pass-through investment occurs when you invest in an entity (“company”) that engages only in activities that you may conduct directly and the investment meets the requirements of this section. If an investment is authorized under both this section and some other provision of law, you may designate under which authority or authorities the investment is made. When making a pass-through investment, you must comply with all the statutes and regulations that would apply if you were engaging in the activity directly. For example, your proportionate share of the company's assets will be aggregated with the assets you hold directly in calculating investment limits (e.g., no more than 400% of total capital may be invested in nonresidential real property loans). (b) You may make a pass-through investment without prior notice to OTS if all of the following conditions are met: (1) You do not invest more than 15% of your total capital in one company; (2) The book value of your aggregate pass-through investments does not exceed 50% of your total capital after making the investment; (3) Your investment would not give you direct or indirect control of the company; (4) Your liability is limited to the amount of your investment; and (5) The company falls into one of the following categories: (i) A limited partnership; (ii) An open-end mutual fund; (iii) A closed-end investment trust; (iv) A limited liability company; or (v) An entity in which you are investing primarily to use the company's services (e.g., data processing). (c) If you want to make other pass-through investments, you must provide OTS with 30 days' advance notice. If within that 30-day period OTS notifies you that an investment presents supervisory, legal, or safety and soundness concerns, you must apply for and receive OTS prior written approval under the standard treatment processing procedures at part 516, subparts A and E of this chapter before making the investment. Notices under this section are deemed to be applications for purposes of statutory and regulatory references to “applications.” Any conditions that OTS imposes on any pass-through investment shall be enforceable as a condition imposed in writing by the OTS in connection with the granting of a request by a savings association within the meaning of 12 U.S.C. 1818(b) or 1818(i). [61 FR 66578, Dec. 18, 1996, as amended at 66 FR 13007, Mar. 2, 2001] A Federal savings association may include in a home loan contract a provision authorizing the imposition of a late charge with respect to the payment of any delinquent periodic payment. With respect to any loan made after July 31, 1976, on the security of a home occupied or to be occupied by the borrower, no late charge, regardless of form, shall be assessed or collected by a Federal savings association, unless any billing, coupon, or notice the Federal savings association may provide regarding installment payments due on the loan discloses the date after which the charge may be assessed. A Federal savings association may not impose a late charge more than one time for late payment of the same installment, and any installment payment made by the borrower shall be applied to the longest outstanding installment due. A Federal savings association shall not assess a late charge as to any payment received by it within fifteen days after the due date of such payment. No form of such late charge permitted by this paragraph shall be considered as interest to the Federal savings association and the Federal savings association shall not deduct late charges from the regular periodic installment payments on the loan, but must collect them as such from the borrower. Any prepayment on a real estate loan must be applied directly to reduce the principal balance on the loan unless the loan contract or the borrower specifies otherwise. Subject to the terms of the loan contract, a Federal savings association may impose a fee for any prepayment of a loan. (a) For any home loan secured by borrower-occupied property, or property to be occupied by the borrower, adjustments to the interest rate, payment, balance, or term to maturity must comply with the limitations of this section and the disclosure and notice requirements of §560.210 of this part. (b) Adjustments to the interest rate shall correspond directly to the movement of an index satisfying the requirements of paragraph (d) of this section. A Federal savings association also may increase the interest rate pursuant to a formula or schedule that specifies the amount of the increase, the time at which it may be made, and which is set forth in the loan contract. A Federal savings association may decrease the interest rate at any time. (c) Adjustments to the payment and the loan balance that do not reflect an interest-rate adjustment may be made if: (1) The adjustments reflect a change in an index that may be used pursuant to paragraph (d) of this section; (2) In the case of a payment adjustment, the adjustment reflects a change in the loan balance or is made pursuant to a formula, or to a schedule specifying the percentage or dollar change in the payment as set forth in the loan contract; or (3) In the case of an open-end line-of-credit loan, the adjustment reflects an advance taken by the borrower under the line-of-credit and is permitted by the loan contract. (d)(1) Any index used must be readily available and independently verifiable. If set forth in the loan contract, an association may use any combination of indices, a moving average of index values, or more than one index during the term of a loan. (2) Except as provided in paragraph (d)(3) of this section, any index used must be a national or regional index. (3) A Federal savings association may use an index not satisfying the requirements of paragraph (d)(2) of this section 30 days after filing a notice unless, within that 30-day period, OTS has notified the association that the notice presents supervisory concerns or raises significant issues of law or policy. If OTS notifies the association of such concerns or issues, the Federal savings association may not use such an index unless it applies for and receives OTS's prior written approval under the standard treatment processing procedures at part 516, subparts A and E of this chapter. [61 FR 50971, Sept. 30, 1996, as amended at 66 FR 13007, Mar. 2, 2001] A Federal savings association may invest in the aggregate up to the greater of 1% of its total capital or $250,000 in community development investments of the type permitted for a national bank under 12 CFR part 24. [66 FR 65826, Dec. 21, 2001] A federal savings association may invest in real estate (improved or unimproved) to be used for office and related facilities of the association, or for such office and related facilities and for rental or sale, if such investment is made and maintained under a prudent program of property acquisition to meet the federal savings association's present needs or its reasonable future needs for office and related facilities. A federal savings association may not make an investment that would cause the outstanding book value of all such investments (including investments under §559.4(e)(2) of this chapter) to exceed its total capital. [61 FR 66579, Dec. 18, 1996] Pursuant to HOLA section 5(c)(2)(D), a Federal savings association may invest in, sell, or hold commercial paper and corporate debt securities subject to the provisions of this section. (a) Limitations. (1) Commercial paper must be: (i) As of the date of purchase, rated in either one of the two highest categories by at least two nationally recognized investment ratings services as shown by the most recently published rating made of such investments; or (ii) If unrated, guaranteed by a company having outstanding paper that is rated as provided in paragraph (a)(1)(i) of this section. (2) Corporate debt securities must be: (i) Securities that may be sold with reasonable promptness at a price that corresponds reasonably to their fair value; and (ii) Rated in one of the four highest categories as to the portion of the security in which the association is investing by a nationally recognized investment ratings service at its most recently published rating before the date of purchase of the security. (3) A Federal savings association's total investment in the commercial paper and corporate debt securities of any one issuer, or issued by any one person or entity affiliated with such issuer, together with other loans, shall not exceed the general lending limitations contained in §560.93(c) of this part. (4) Investments in corporate debt securities convertible into stock are subject to the following additional limitations: (i) The purchase of securities convertible into stock at the option of the issuer is prohibited; (ii) At the time of purchase, the cost of such securities must be written down to an amount that represents the investment value of the securities considered independently of the conversion feature; and (iii) Federal savings associations are prohibited from exercising the conversion feature. (5) A Federal savings association shall maintain information in its files adequate to demonstrate that it has exercised prudent judgment in making investments under this section. (b) Notwithstanding the limitations contained in this section, the Office may permit investment in corporate debt securities of another savings association in connection with the purchase or sale of a branch office or in connection with a supervisory merger or acquisition. (c) Underwriting. Before committing to acquire any investment security, a Federal savings association must determine whether the investment is safe and sound and suitable for the association. The Federal savings association must consider, as appropriate, the interest rate, credit, liquidity, price, transaction, and other risks associated with the investment activity. The Federal savings association must also determine that the issuer has adequate resources and the willingness to provide for all required payments on its obligations in a timely manner. [61 FR 50971, Sept. 30, 1996, as amended at 66 FR 65826, Dec. 21, 2001] (a) Permissible activities. Subject to the limitations of this section, a Federal savings association may engage in leasing activities. These activities include becoming the legal or beneficial owner of tangible personal property or real property for the purpose of leasing such property, obtaining an assignment of a lessor's interest in a lease of such property, and incurring obligations incidental to its position as the legal or beneficial owner and lessor of the leased property. (b) Definitions. For the purposes of this section: (1) The term net lease means a lease under which the Federal savings association will not, directly or indirectly, provide or be obligated to provide for: (i) The servicing, repair or maintenance of the leased property during the lease term; (ii) The purchasing of parts and accessories for the leased property, except that improvements and additions to the leased property may be leased to the lessee upon its request in accordance with the full-payout requirements of paragraph (c)(2)(i) of this section; (iii) The loan of replacement or substitute property while the leased property is being serviced; (iv) The purchasing of insurance for the lessee, except where the lessee has failed to discharge a contractual obligation to purchase or maintain insurance; or (v) The renewal of any license, registration, or filing for the property unless such action by the Federal savings association is necessary to protect its interest as an owner or financier of the property. (2) The term full-payout lease means a lease transaction in which any unguaranteed portion of the estimated residual value relied on by the association to yield the return of its full investment in the leased property, plus the estimated cost of financing the property over the term of the lease, does not exceed 25% of the original cost of the property to the lessor. In general, a lease will qualify as a full-payout lease if the scheduled payments provide at least 75% of the principal and interest payments that a lessor would receive if the finance lease were structured as a market-rate loan. (3) The term realization of investment means that a Federal savings association that enters into a lease financing transaction must reasonably expect to realize the return of its full investment in the leased property, plus the estimated cost of financing the property over the term of the lease from: (i) Rentals; (ii) Estimated tax benefits, if any; and (iii) The estimated residual value of the property at the expiration of the term of the lease. (c) Finance leasing—(1) Investment limits. A Federal savings association may exercise its authority under HOLA sections 5(c)(1)(B) (residential real estate loans), 5(c)(2)(A) (commercial, business, corporate or agricultural loans), 5(c)(2)(B) (nonresidential real estate loans), and 5(c)(2)(D) (consumer loans) by conducting leasing activities that are the functional equivalent of loans made under those HOLA sections. These activities are commonly referred to as financing leases. Such financing leases are subject to the same investment limits that apply to loans made under those sections. For example, a financing lease of tangible personal property made to a natural person for personal, family or household purposes is subject to all limitations applicable to the amount of a Federal savings association's investment in consumer loans. A financing lease made for commercial, corporate, business, or agricultural purposes is subject to all limitations applicable to the amount of a Federal savings association's investment in commercial loans. A financing lease of residential or nonresidential real property is subject to all limitations applicable to the amount of a Federal savings association's investment in these types of real estate loans. (2) Functional equivalent of lending. To qualify as the functional equivalent of a loan: (i) The lease must be a net, full-payout lease representing a non-cancelable obligation of the lessee, notwithstanding the possible early termination of the lease; (ii) The portion of the estimated residual value of the property relied upon by the lessor to satisfy the requirements of a full-payout lease must be reasonable in light of the nature of the leased property and all relevant circumstances so that realization of the lessor's full investment plus the cost of financing the property depends primarily on the creditworthiness of the lessee, and not on the residual market value of the leased property; and (iii) At the termination of a financing lease, either by expiration or default, property acquired must be liquidated or released on a net basis as soon as practicable. Any property held in anticipation of re-leasing must be reevaluated and recorded at the lower of fair market value or book value. (d) General leasing. Pursuant to section 5(c)(2)(C) of the HOLA, a Federal savings association may invest in tangible personal property, including vehicles, manufactured homes, machinery, equipment, or furniture, for the purpose of leasing that property. In contrast to financing leases, lease investments made under this authority need not be the functional equivalent of loans. (e) Leasing salvage powers. If, in good faith, a Federal savings association believes that there has been an unanticipated change in conditions that threatens its financial position by significantly increasing its exposure to loss, it may: (1) As the owner and lessor, take reasonable and appropriate action to salvage or protect the value of the property or its interest arising under the lease; (2) As the assignee of a lessor's interest in a lease, become the owner and lessor of the leased property pursuant to its contractual right, or take any reasonable and appropriate action to salvage or protect the value of the property or its interest arising under the lease; or (3) Include any provisions in a lease, or make any additional agreements, to protect its financial position or investment in the circumstances set forth in paragraphs (e)(1) and (e)(2) of this section. (a) What limitations apply? Pursuant to HOLA section 5(c)(1)(H), a Federal savings association (“you”) may invest in obligations issued by any state, territory, possession, or political subdivision thereof (“governmental entity”), subject to appropriate underwriting and the following conditions: (b) What is a political subdivision? Political subdivision means a county, city, town, or other municipal corporation, a public authority, or a publicly-owned entity that is an instrumentality of a state or a municipal corporation. (c) What is a general obligation of a state or political subdivision? A general obligation is an obligation that is guaranteed by the full faith and credit of a state or political subdivision that has the power to tax. Indirect payments, such as through a special fund, may qualify as general obligations if a state or political subdivision with taxing authority has unconditionally agreed to provide funds to cover payments. (d) What is appropriate underwriting for this type of investment? In the case of a security rated in one of the four highest investment grades by a nationally recognized rating agency, your assessment of the obligor's credit quality may be based, in part, on reliable rating agency estimates of the obligor's performance. For all other securities, you must perform your own detailed analysis of credit quality. In doing so, you must consider, as appropriate, the interest rate, credit, liquidity, price, transaction, and other risks associated with the investment activity and determine that such investment is appropriate for your institution. You must also determine that the obligor has adequate resources and willingness to provide for all required payments on its obligations in a timely manner. [66 FR 65826, Dec. 21, 2001] Pursuant to HOLA section 5(c)(4)(C), a Federal savings association may make foreign assistance investments in an aggregate amount not to exceed one percent of its assets, subject to the following conditions: (a) For any investment made under the Foreign Assistance Act, the loan agreement shall specify what constitutes an event of default, and provide that upon default in payment of principal or interest under such agreement, the entire amount of outstanding indebtedness thereunder shall become immediately due and payable, at the lender's option. Additionally, the contract of guarantee shall cover 100% of any loss of investment thereunder, except for any portion of the loan arising out of fraud or misrepresentation for which the party seeking payment is responsible, and provide that the guarantor shall pay for any such loss in U.S. dollars within a specified reasonable time after the date of application for payment. (b) To make any investments in the share capital and capital reserve of the Inter-American Savings and Loan Bank, a Federal savings association must be adequately capitalized and have adequate allowances for loan and lease losses. The Federal savings association's aggregate investment in such capital or capital reserve, including the amount of any obligations undertaken to provide said Bank with reserve capital in the future (call-able capital), must not, as a result of such investment, exceed the lesser of one-quarter of 1% of its assets or $100,000. A Federal savings association may issue letters of credit and may issue such other independent undertakings as are approved by OTS, subject to the restrictions in §560.120. [64 FR 46565, Aug. 26, 1999] Pursuant to section 5(b)(2) of the HOLA, a Federal savings association may enter into a repayable suretyship or guaranty agreement, subject to the conditions in this section. (a) What is a suretyship or guaranty agreement? Under a suretyship, a Federal savings association is bound with its principal to pay or perform an obligation to a third person. Under a guaranty agreement, a Federal savings association agrees to satisfy the obligation of the principal only if the principal fails to pay or perform. (b) What requirements apply to suretyship and guaranty agreements under this section? A Federal savings association may enter into a suretyship or guaranty agreement under this section, subject to each of the following requirements: (1) The Federal savings association must limit its obligations under the agreement to a fixed dollar amount and a specified duration. (2) The Federal savings association's performance under the agreement must create an authorized loan or other investment. (3) The Federal savings association must treat its obligation under the agreement as a loan to the principal for purposes of §§560.93 and 563.43 of this chapter. (4) The Federal savings association must take and maintain a perfected security interest in collateral sufficient to cover its total obligation under the agreement. (c) What collateral is sufficient? (1) The Federal savings association must take and maintain a perfected security interest in real estate or marketable securities equal to at least 110 percent of its obligation under the agreement, except as provided in paragraph (c)(2) of this section. (i) If the collateral is real estate, the Federal savings association must establish the value by a signed appraisal or evaluation in accordance with part 564 of this chapter. In determining the value of the collateral, the Federal savings association must factor in the value of any existing senior mortgages, liens or other encumbrances on the property, except those held by the principal to the suretyship or guaranty agreement. (ii) If the collateral is marketable securities, the Federal savings association must be authorized to invest in that security taken as collateral. The Federal savings association must ensure that the value of the security is 110 percent of the obligation at all times during the term of agreement. (2) The Federal savings association may take and maintain a perfected security interest in collateral which is at all times equal to at least 100 percent of its obligation, if the collateral is: (i) Cash; (ii) Obligations of the United States or its agencies; (iii) Obligations fully guarantied by the United States or its agencies as to principal and interest; or (iv) Notes, drafts, or bills of exchange or bankers' acceptances that are eligible for rediscount or purchase by a Federal Reserve Bank. [64 FR 46565, Aug. 26, 1999]
Title 12: Banks and Banking
PART 560—LENDING AND INVESTMENT
Subpart A—Lending and Investment Powers for Federal Savings Associations
§ 560.30 General lending and investment powers of Federal savings associations.
Lending and Investment Powers Chart------------------------------------------------------------------------ Statutory investment limitations (Endnotes Category Statutory contain applicable authorization \1\ regulatory limitations)------------------------------------------------------------------------Bankers' bank stock........... 5(c)(4)(E)....... Same terms as applicable to national banks.Business development credit 5(c)(4)(A)....... The lesser of .5% of corporations. total outstanding loans or $250,000.Commercial loans.............. 5(c)(2)(A)....... 20% of total assets, provided that amounts in excess of 10% of total assets may be used only for small business loans.Commercial paper and corporate 5(c)(2)(D)....... Up to 35% of total debt securities. assets. 2,3Community development loans 5(c)(3)(A)....... 5% of total assets, and equity investments. provided equity investments do not exceed 2% of total assets. \4\Construction loans without 5(c)(3)(C)....... In the aggregate, the security. greater of total capital or 5% of total assets.Consumer loans................ 5(c)(2)(D)....... Up to 35% of total assets. 2,5Credit card loans or loans 5(c)(1)(T)....... None. \6\ made through credit card accounts.Deposits in insured depository 5(c)(1)(G)....... None. \6\ institutions.Education loans............... 5(c)(1)(U)....... None. \6\Federal government and 5(c)(1)(C), None. \6\ government-sponsored 5(c)(1)(D), enterprise securities and 5(c)(1)(E), instruments. 5(c)(1)(F).Finance leasing............... 5(c)(1)(B), Based on purpose and 5(c)(2)(A), property financed. 5(c)(2)(B), \7\ 5(c)(2)(D).Foreign assistance investments 5(c)(4)(C)....... 1% of total assets. \8\General leasing............... 5(c)(2)(C)....... 10% of assets. \7\Home improvement loans........ 5(c)(1)(J)....... None. \6\Home (residential) loans \9\.. 5(c)(1)(B)....... None. 6,10HUD-insured or guaranteed 5(c)(1)(O)....... None. \6\ investments.Insured loans................. 5(c)(1)(I), None. \6\ 5(c)(1)(K).Liquidity investments......... 5(c)(1)(M)....... None. \6\Loans secured by deposit 5(c)(1)(A)....... None. 6,11 accounts.Loans to financial 5(c)(1)(L)....... None. 6,12 institutions, brokers, and dealers.Manufactured home loans....... 5(c)(1)(J)....... None. 6,13Mortgage-backed securities.... 5(c)(1)(R)....... None. \6\National Housing Partnership 5(c)(1)(N)....... None. \6\ Corporation and related partnerships and joint ventures.New markets venture capital 5(c)(4)(F)....... 5% of total capital. companies.Nonconforming loans........... 5(c)(3)(B)....... 5% of total assets.Nonresidential real property 5(c)(2)(B)....... 400% of total loans. capital. \14\Open-end management investment 5(c)(1)(Q)....... None.\6\ companies \15\.Rural business investment 7 U.S.C. 2009cc-9 Five percent of total companies. capital.Service corporations.......... 5(c)(4)(B)....... 3% of total assets, as long as any amounts in excess of 2% of total assets further community, inner city, or community development purposes. \16\Small business investment 15 U.S.C. 5% of total capital. companies. 682(b)(2).Small-business-related 5(c)(1)(S)....... None. \6\ securities.State and local government 5(c)(1)(H)....... None for general obligations. obligations. Per issuer limitation of 10% of capital for other obligations. \6,17\State housing corporations.... 5(c)(1)(P)....... None. \6,18\Transaction account loans, 5(c)(1)(A)....... None. \6,19\ including overdrafts.------------------------------------------------------------------------
§ 560.31 Election regarding categorization of loans or investments and related calculations.
§ 560.32 Pass-through investments.
§ 560.33 Late charges.
§ 560.34 Prepayments.
§ 560.35 Adjustments to home loans.
§ 560.36 De minimis investments.
§ 560.37 Real estate for office and related facilities.
§ 560.40 Commercial paper and corporate debt securities.
§ 560.41 Leasing.
§ 560.42 State and local government obligations.
------------------------------------------------------------------------ Aggregate Per-issuer limitation limitation------------------------------------------------------------------------(1) General obligations......... None.............. None.(2) Other obligations of a None.............. 10% of total governmental entity (e.g., capital. revenue bonds) that hold one of the four highest investment grade ratings by a nationally recognized rating agency or that are nonrated but of investment quality.(3) Obligations of a As approved by 10% of total governmental entity that do not your Regional capital. qualify under any other Director paragraph but are approved by your Regional Director.------------------------------------------------------------------------
§ 560.43 Foreign assistance investments.
§ 560.50 Letters of credit and other independent undertakings—authority.
§ 560.60 Suretyship and guaranty.
