12 U.S.C. § 371 — Real estate loans

submitted 113 years ago by ch. 6 to r/title-12-BANKS-AND-BANKING · 165 words · no verdicts yet

in plain englishAI-generated · not legal advice

National banks can make, buy, or sell loans secured by real estate liens. These loans follow the Comptroller of the Currency's rules and section 1828(o). Certain construction loan notes can be discounted as commercial paper too. They also need a binding promise from an approved party to pay in full once the building is finished.

(a) Any national bank may make, arrange, buy, or sell loans or credit secured by liens on real estate interests. This is subject to section 1828(o) of this title, plus whatever restrictions and requirements the Comptroller of the Currency sets by regulation or order.

(b) Notes representing loans made under this section to finance building a home or farm building can be discounted as commercial paper — treated the same as other short-term business notes under section 343 — if they mature within nine months, and are backed by a valid, binding agreement from an individual, partnership, association, or corporation the discounting bank accepts, promising to advance the full loan amount once the building is finished.

the actual law source: uscode.house.gov ↗public domain

(a) Authorization to make real estate loans; orders, rules, and regulations of Comptroller of the Currency

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 section 1828(o) of this title and such restrictions and requirements as the Comptroller of the Currency may prescribe by regulation or order.

(b) Eligibility for discount as commercial paper of notes representing loans financing construction of residential or farm buildings; prerequisites

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 first paragraph of section 343 of this title 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.

Source credit: (Dec. 23, 1913, ch. 6, § 24, 38 Stat. 273; Sept. 7, 1916, ch. 461, 39 Stat. 754; Feb. 25, 1927, ch. 191, § 16, 44 Stat. 1232; June 27, 1934, ch. 847, § 505, 48 Stat. 1263; Aug. 23, 1935, ch. 614, title II, § 208, title III, § 328, 49 Stat. 706, 717; Mar. 28, 1941, ch. 31, § 8, 55 Stat. 62; July 22, 1937, ch. 517, § 15(a), as added Aug. 14, 1946, ch. 964, § 5, 60 Stat. 1079; May 25, 1948, ch. 334, § 9, 62 Stat. 265; Oct. 25, 1949, ch. 729, § 6, 63 Stat. 906; Apr. 20, 1950, ch. 94, title V, § 502, 64 Stat. 80; Sept. 1, 1951, ch. 378, title II, § 207, title V, § 503, 65 Stat. 303, 312; Aug. 15, 1953, ch. 510, 67 Stat. 613; July 22, 1954, ch. 561, 68 Stat. 525; Aug. 28, 1937, ch. 870, § 10(f), as added Aug. 17, 1954, ch. 751, § 1(4), 68 Stat. 736; Aug. 11, 1955, ch. 781, §§ 1, 2, 69 Stat. 633, 634; Pub. L. 85–536, § 3, July 18, 1958, 72 Stat. 396; Pub. L. 86–251, § 4, Sept. 9, 1959, 73 Stat. 489; Pub. L. 87–70, title VIII, § 804(c), title IX, § 902, June 30, 1961, 75 Stat. 188, 191; Pub. L. 87–717, Sept. 28, 1962, 76 Stat. 662; Pub. L. 88–341, June 30, 1964, 78 Stat. 233; Pub. L. 88–560, title X, § 1004, Sept. 2, 1964, 78 Stat. 807; Pub. L. 89–117, title II, § 201(b)(2), title XI, § 1111, Aug. 10, 1965, 79 Stat. 465, 509; Pub. L. 89–754, title V, § 504(a)(2), Nov. 3, 1966, 80 Stat. 1277; Pub. L. 90–19, § 26, May 25, 1967, 81 Stat. 28; Pub. L. 90–448, title IV, § 416(b), title XVII, § 1718, Aug. 1, 1968, 82 Stat. 518, 609; Pub. L. 91–351, title VII, § 704, July 24, 1970, 84 Stat. 462; Pub. L. 91–609, title VII, § 727(c), Dec. 31, 1970, 84 Stat. 1803; Pub. L. 93–383, title VII, § 711, title VIII, § 802(i)(1), Aug. 22, 1974, 88 Stat. 716, 725; Pub. L. 97–320, title IV, § 403(a), Oct. 15, 1982, 96 Stat. 1510; Pub. L. 102–242, title III, § 304(b), Dec. 19, 1991, 105 Stat. 2354.)

history & why it existsrecord from the source credit

1913Enacted · Act of Dec. 23, 1913, ch. 6 · 38 Stat. 273
1916Amended · Act of Sept. 7, 1916, ch. 461 · 39 Stat. 754
1927Amended · Act of Feb. 25, 1927, ch. 191 · 44 Stat. 1232
1934Amended · Act of June 27, 1934, ch. 847 · 48 Stat. 1263
1935Amended · Act of Aug. 23, 1935, ch. 614 · 49 Stat. 706, 717
1941Amended · Act of Mar. 28, 1941, ch. 31 · 55 Stat. 62
1937Amended · Act of July 22, 1937, ch. 517 · 60 Stat. 1079
1948Amended · Act of May 25, 1948, ch. 334 · 62 Stat. 265
1949Amended · Act of Oct. 25, 1949, ch. 729 · 63 Stat. 906
1950Amended · Act of Apr. 20, 1950, ch. 94 · 64 Stat. 80
1951Amended · Act of Sept. 1, 1951, ch. 378 · 65 Stat. 303, 312
1953Amended · Act of Aug. 15, 1953, ch. 510 · 67 Stat. 613
1954Amended · Act of July 22, 1954, ch. 561 · 68 Stat. 525
1937Amended · Act of Aug. 28, 1937, ch. 870 · 68 Stat. 736
1955Amended · Act of Aug. 11, 1955, ch. 781 · 69 Stat. 633, 634
1958Amended · Pub. L. 85-536 · 72 Stat. 396
1959Amended · Pub. L. 86-251 · 73 Stat. 489
1961Amended · Pub. L. 87-70 · 75 Stat. 188, 191
1962Amended · Pub. L. 87-717 · 76 Stat. 662
1964Amended · Pub. L. 88-341 · 78 Stat. 233
1964Amended · Pub. L. 88-560 · 78 Stat. 807
1965Amended · Pub. L. 89-117 · 79 Stat. 465, 509
1966Amended · Pub. L. 89-754 · 80 Stat. 1277
1967Amended · Pub. L. 90-19 · 81 Stat. 28
1968Amended · Pub. L. 90-448 · 82 Stat. 518, 609
1970Amended · Pub. L. 91-351 · 84 Stat. 462
1970Amended · Pub. L. 91-609 · 84 Stat. 1803
1974Amended · Pub. L. 93-383 · 88 Stat. 716, 725
1982Amended · Pub. L. 97-320 · 96 Stat. 1510
1991Amended · Pub. L. 102-242 · 105 Stat. 2354

A history note hasn’t been published yet. The record shows enactment by ch. 6 on 1913-12-23.

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