(1) A stock association may invest its assets in loans to the employees, including officers, of the association and any wholly owned subsidiary, to enable them to purchase stock of the association or in a service corporation owned by the association, but:
(a) The aggregate amount of such loans outstanding at any one time shall not exceed one percent of its assets;
(b) The amount so loaned to any one person shall not exceed 90 percent of the fair market value or cost of the stock, whichever is lower, at the time of the purchase;
(c) The association shall obtain or retain a security interest in the stock so acquired until the loan is paid in full;
(d) The maximum amount due on such loans to one person at any one time shall not exceed $20,000; and
(e) The terms of the loan must provide for repayment within a period of not more than 10 years.
(2) Except as provided by subsection (1) of this section, an association shall not loan any of its funds upon the security of its own stock. [Formerly 722.424; 1979 c.863 §11]
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