N.Y. Banking Law § 380-g: Power to engage in line of credit financing of residential real estate

§ 380-g. Power to engage in line of credit financing of residential

real estate. A savings and loan association is authorized to invest an

amount, not exceeding the lesser of (a) ten per centum of the sum of its

surplus, undivided profits, and reserves or (b) one per centum 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 this state, where (i) the

association relies substantially for repayment on the borrower's general

credit standing, with or without other security, or (ii) the association

relies on other assurances for repayment, including but not limited to a

guaranty or similar obligation of a third party, and, in either case

described in clause (i) or (ii), regardless of whether or not the

association takes security.