103 STAT. 286 PUBLIC LAW 101-73—AUG. 9, 1989 the satisfaction of such obligations or loans the real
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estate described in the first lien or the insurance pro- ceeds under the National Housing Act. ,JJ "(Q) INVESTMENT COMPANIES. — A Federal savings associa- j. tion may invest in, redeem, or hold shares or certificates ,". J issued by any open-end management investment company which— ^ _ ^„, "(i) is registered with the Securities and Exchange , !-,. Commission under the Investment Company Act of 1940, and
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"(ii) the portfolio of which is restricted by such management company's investment policy (changeable 5 only if authorized by shareholder vote) solely to invest- ^.. ments that a Federal savings association by law or regulation may, without limitation as to percentage of assets, invest in, sell, redeem, hold, or otherwise deal in. "(R) MORTGAGE-BACKED SECURITIES.—Investments in secu- rities that— "(i) are offered and sold pursuant to section 4(5) of the Securities Act of 1933; or "(ii) are mortgage related securities (as defined in section 3(a)(41) of the Securities Exchange Act of 1934), subject to such regulations as the Director may prescribe, including regulations prescribing minimum size of the issue (at the time of initial distribution) or minimum aggregate sales price, or both. "(2) LOANS OR INVESTMENTS LIMITED TO A PERCENTAGE OF ASSETS OR CAPITAL.— The following loans or investments are permitted, but only to the extent specified: "(A) COMMERCIAL AND OTHER LOANS.— Secured or un- secured loans for commercial, corporate, business, or agri- cultural purposes. The aggregate amount of loans under this paragraph shall not exceed 10 percent of the assets of the Federal savings association. "(B) NONRESIDENTIAL REAL PROPERTY LOANS. — "(i) IN GENERAL. —Loans on the security of liens upon nonresidential real property. Except as provided in clause (ii), the aggregate amount of such loans shall not exceed 400 percent of the Federal savings association's capital, as determined under subsection (t). (ii) EXCEPTION.— The Director may permit a savings association to exceed the limitation set forth in clause (i) if the Director determines that the increased author- ity- "(I) poses no significant risk to the safe and / sound operation of the association, and "(II) is consistent with prudent operating prac- tices, "(iii) MONITORING.— If the Director permits any in- ' • f^ creased authority pursuant to clause (ii), the Director shall closely monitor the Federal savings association's i,^ condition and lending activities to ensure that the savings association carries out all authority under this paragraph in a safe and sound manner and complies with this subparagraph and all relevant laws and regu- , lations
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