§ 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.