Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Subsection A of section 2 of chapter 167E of the General Laws, as appearing in the 1988 Official Edition, is hereby amended by striking out clause (4).

SECTION 2. Subsection B of said section 2 of said chapter 167E is hereby amended by striking out paragraph 14, as so appearing, and inserting in place thereof the following paragraph:-

14. Loans Outside the Commonwealth. - Any such bank, subject to regulations made by the commissioner, may make, acquire by purchase, participate in or service mortgage loans: (a) on real estate located outside of the commonwealth, on which the notes have been endorsed for insurance by the Federal Housing Administrator, or combined with secondary mortgages guaranteed in full by the United States of America under the Servicemen's Readjustment Act of nineteen hundred and forty-four; (b) on real estate located outside of the commonwealth, on which the notes have been guaranteed in part by the administrator of veterans' affairs as provided by chapter forty-six of the acts of nineteen hundred and forty-five; and (c) on real estate located outside of its lending area as defined in this subsection, which loans are of the several classes specified in paragraphs 1 to 12, inclusive. No investment shall be made under this paragraph if, at the time of such investment, such bank is refusing to allow, receive or consider applications regarding mortgage loans on real estate located within the commonwealth, except that this prohibition shall not be deemed to affect any investment which such bank has entered into by a written commitment, but only to the extent of such commitment.

Such mortgage loans may be made or acquired, notwithstanding the restrictions contained in this subsection and section seven.