(a) Any national banking association may make, arrange, purchase or sell
loans or extensions of credit secured by liens on interests in real estate,
subject to such terms, conditions, and limitations as may be prescribed by
the Comptroller of the Currency by order, rule, or regulation.
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(b) Notes representing loans made under this section to finance the
construction of residential or farm buildings and having maturities not to
exceed nine months shall be eligible for discount as commercial paper within
the terms of the second paragraph of section 13 of the Federal Reserve Act if
accompanied by a valid and binding agreement to advance the full amount of
the loan upon the completion of the building entered into by an individual,
partnership, association, or corporation acceptable to the discounting
bank.
[12 USC 371. As amended by acts of Aug. 14, 1946 (60 Stat. 1072);
May 25, 1948 (62 Stat. 265); Oct. 25, 1949 (63 Stat. 906); April 20, 1950 (64
Stat. 80); Sept. 1, 1951 (65 Stat. 303, 312); Aug. 15, 1953 (67 Stat. 614);
July 22, 1954 (68 Stat. 525); Aug. 17, 1954 (68 Stat. 735); Aug. 11, 1955 (69
Stat. 633, 634); July 18, 1958 (72 Stat. 396); Sept. 9, 1959 (73 Stat. 489);
June 30, 1961 (75 Stat. 188, 191); Sept. 28, 1962 (76 Stat. 662, 663); June
30, 1964 (78 Stat. 233); Sept. 2, 1964 (78 Stat. 807); Aug. 10, 1965 (79
Stat. 465, 509); Nov. 3, 1966 (80 Stat. 1277); May 25, 1967 (81 Stat. 28);
Aug. 1, 1968 (82 Stat. 518, 609); July 24, 1970 (84 Stat. 462); Dec. 31, 1970
(84 Stat. 1803); Aug. 22, 1974 (88 Stat. 716, 725); and Oct. 15, 1982 (96
Stat. 1510).]
