Loans or investments without percentage of assets limitation

Without limitation as a percentage of assets, the following are permitted:

(A) Account loans Loans on the security of its savings accounts and loans specifically related to transaction accounts.

(B) Residential real property loans Loans on the security of liens upon residential real property.

(C) United States Government securities Investments in obligations of, or fully guaranteed as to principal and interest by, the United States.

(D) Federal home loan bank and Federal National Mortgage Association securities Investments in the stock or bonds of a Federal home loan bank or in the stock of the Federal National Mortgage Association.

(E) Federal Home Loan Mortgage Corporation instruments Investments in mortgages, obligations, or other securities which are or have been sold by the Federal Home Loan Mortgage Corporation pursuant to section 305 or 306 of the Federal Home Loan Mortgage Corporation Act [ 12 U.S.C. 1454 or 1455].

(F) Other Government securities Investments in obligations, participations, securities, or other instruments issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association, the Student Loan Marketing Association, the Government National Mortgage Association, or any agency of the United States. A savings association may issue and sell securities which are guaranteed pursuant to section 306(g) of the National Housing Act [ 12 U.S.C. 1721(g) ].

(G) Deposits Investments in accounts of any insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act [ 12 U.S.C. 1813 ].

(H) State securities Investments in obligations issued by any State or political subdivision thereof (including any agency, corporation, or instrumentality of a State or political subdivision). A Federal savings association may not invest more than 10 percent of its capital in obligations of any one issuer, exclusive of investments in general obligations of any issuer.

(I) Purchase of insured loans Purchase of loans secured by liens on improved real estate which are insured or guaranteed under the National Housing Act [ 12 U.S.C. 1701 et seq.], the Servicemen’s Readjustment Act of 1944, or chapter 37 of title 38.

(J) Home improvement and manufactured home loans Loans made to repair, equip, alter, or improve any residential real property, and loans made for manufactured home financing.

(K) Insured loans to finance the purchase of fee simple Loans insured under section 240 of the National Housing Act [ 12 U.S.C. 1715z–5 ].

(L) Loans to financial institutions, brokers, and dealers Loans to— (i) financial institutions with respect to which the United States or an agency or instrumentality thereof has any function of examination or supervision, or (ii) any broker or dealer registered with the Securities and Exchange Commission, which are secured by loans, obligations, or investments in which the Federal savings association has the statutory authority to invest directly.

(M) Liquidity investments Investments (other than equity investments), identified by the Comptroller, for liquidity purposes, including cash, funds on deposit at a Federal reserve bank or a Federal home loan bank, or bankers’ acceptances.

(N) Investment in the national housing partnership corporation, partnerships, and joint ventures Investments in shares of stock issued by a corporation authorized to be created pursuant to title IX of the Housing and Urban Development Act of 1968 [ 42 U.S.C. 3931 et seq.], and investments in any partnership, limited partnership, or joint venture formed pursuant to section 907(a) or 907(c) of such Act [ 42 U.S.C. 3937(a) or (c)].

(O) Certain HUD insured or guaranteed investments Loans that are secured by mortgages— (i) insured under title X of the National Housing Act [ 12 U.S.C. 1749aa et seq.], 1 1 See References in Text note below. or (ii) guaranteed under title IV of the Housing and Urban Development Act of 1968, under part B of the National Urban Policy and New Community Development Act of 1970 [ 42 U.S.C. 4511 et seq.], or under section 802 of the Housing and Community Development Act of 1974 [ 42 U.S.C. 1440 ].

(P) State housing corporation investments Obligations of and loans to any State housing corporation, if— (i) such obligations or loans are secured directly, or indirectly through an agent or fiduciary, by a first lien on improved real estate which is insured under the provisions of the National Housing Act [ 12 U.S.C. 1701 et seq.], and (ii) in the event of default, the holder of the obligations or loans has the right directly, or indirectly through an agent or fiduciary, to cause to be subject to the satisfaction of such obligations or loans the real estate described in the first lien or the insurance proceeds under the National Housing Act.

(Q) Investment companies A Federal savings association may invest in, redeem, or hold shares or certificates issued by any open-end management investment company which— (i) is registered with the Securities and Exchange Commission under the Investment Company Act of 1940 [ 15 U.S.C. 80a–1 et seq.], and (ii) the portfolio of which is restricted by such management company’s investment policy (changeable only if authorized by shareholder vote) solely to investments that a Federal savings association by law or regulation may, without limitation as to percentage of assets, invest in, sell, redeem, hold, or otherwise deal in.

(R) Mortgage-backed securities Investments in securities that— (i) are offered and sold pursuant to section 4(5) of the Securities Act of 1933; 1 or (ii) are mortgage related securities (as defined in section 3(a)(41) of the Securities Exchange Act of 1934) [ 15 U.S.C. 78c(a)(41) ], subject to such regulations as the Comptroller may prescribe, including regulations prescribing minimum size of the issue (at the time of initial distribution) or minimum aggregate sales price, or both.

(S) Small business related securities Investments in small business related securities (as defined in section 78c(a)(53) of title 15 ), subject to such regulations as the Comptroller may prescribe, including regulations concerning the minimum size of the issue (at the time of the initial distribution), the minimum aggregate sales price, or both.

(T) Credit card loans Loans made through credit cards or credit card accounts.

(U) Educational loans Loans made for the payment of educational expenses.