SEC. 35-3-19. Investments and loans by financial institutions.
Any bank, savings bank, trust company, insurance company, building and loan association or credit union is hereby authorized to invest its funds and monies, eligible for investment, in notes, bonds or other obligations secured by mortgage, deed of trust, or other lien on real property, title to which is fee simple or leasehold, or on personal property, in which except as to value of the property securing the lien, the priority of the lien thereon securing the obligation and the maturity thereof, and the quality of the title thereto, it is otherwise lawful for such investor to invest its funds, if the entire amount of the indebtedness is insured or guaranteed by the United States, or, if not so wholly insured or guaranteed, the difference between the entire amount of such indebtedness and that portion thereof which is insured or guaranteed by the United States does not exceed the amount permissible under the applicable law of this state, and meets the requirements thereof as to value of property and priority of lien. Any such lender except an insurance company may make an unsecured loan not exceeding $1,000.00 to an eligible veteran if at least one-half thereof is guaranteed pursuant to the Servicemen's Readjustment Act of 1944, as amended by the act of Congress approved December 28, 1945, being Chapter 588 of the first session of the 79th Congress.
SOURCES: Codes, 1942, Sec. 7516.5-01; Laws, 1946, ch. 360, Sec. 1.