§5-16-24. Powers generally.

(a) Every association incorporated pursuant to or operating under the provisions of this chapter shall have all the powers enumerated, authorized and permitted by this chapter and such other rights, privileges and powers as may be incidental to or necessary for the accomplishment of the objects and purposes of the association.

(b) Every association shall have the following powers:

(1) To maintain civil actions and have civil actions maintained against it, complain and defend, in any court;

(2) To purchase, hold and convey real and personal property consistent with its objects and powers, to mortgage, pledge or lease any real or personal property and to take property by gift, devise or bequest;

(3) To have a corporate seal, which may be affixed by imprint;

(4) To appoint officers and employees as its business shall require and allow them suitable compensation;

(5) To adopt and amend bylaws as provided in this chapter;

(6) To insure its accounts with the Federal Savings and Loan Insurance Corporation and qualify as a member of a Federal Home Loan Bank;

(7) To accept savings and investments as payments on accounts as provided in this chapter;

(8) To make loans to members on the sole security of accounts. No such loan shall exceed 90 percent of the repurchase value of the accounts owned or otherwise pledged by the borrower. No such loan shall be made when an association has applications for repurchase which have been on file more than 60 days and not reached for payment;

(9) To make direct reduction home loans of any amount and secured by home property situated anywhere, subject to the following limitations:

a. No such loan shall exceed $20,000.00, except when made under the 30 percent of capital lending power;

b. No home property securing such a loan shall be situated beyond the regular lending area, except when such loan is made under the 30 percent of capital lending power; and

c. No such loan shall be made to or for the benefit of a director, an officer or employee, except when secured by home property owned and occupied by such director, officer or employee;

(10) To use an aggregate amount not exceeding 30 percent of the capital at the time of such use, or a larger amount with the approval of the commissioner, to make loans as follows:

a. Home loans of any amount, which are not direct reduction home loans; and

b. Other real estate loans, whether amortized or unamortized.

This power is herein referred to as the "30 percent of capital lending power." A subsequent reduction of capital shall not affect in any way outstanding loans made under the 30 percent of capital lending power;

(11) To invest in securities as follows:

a. Without limit in obligations of or guaranteed as to principal and interest by the United States;

b. Without limit in obligations of Federal Home Loan Banks and in obligations of the Federal Savings and Loan Insurance Corporation; and

c. In stock of a Federal Home Loan Bank of which it is eligible to be a member;

(12) Without restriction upon the general powers of the association, to invest in:

a. Real estate whereon there is or may be erected a building or buildings for the transaction of the business of the association, from portions of which, not required for its own use, a revenue may be derived by rentals or otherwise. An association may invest in such real estate an amount representing the cost of land and improvements not exceeding the sum of its undivided profits and reserve accounts. It may, however, invest in such real estate a larger sum with the approval of the commissioner;

b. Real estate purchased at a sheriff's sale or at any other sale, public or private, judicial or otherwise, upon which the association has a lien or claim, legal or equitable;

c. Real estate accepted by the association in satisfaction of any debt;

d. Real estate purchased for sale or improvement and sale upon contracts, at the cost of land and improvements, when such contracts are executed concurrently with or prior to such purchase. Such transactions shall be subject to all the limitations provided in this chapter with respect to real estate loans;

e. Real estate acquired by the association in exchange for real estate owned by the association; and

f. Real estate acquired by the association in connection with salvaging the value of property owned by the association.

Title to all real estate shall be taken and held in the name of the association and such title shall immediately be recorded in accordance with law;

(13) To secure advance of not more than an aggregate amount equal to one half of its capital. Within such amount equal to one half of its capital, the association may borrow from sources other than the Federal Home Loan Bank an aggregate amount not in excess of 10 percent of its capital. A subsequent reduction of capital shall not affect in any way outstanding obligations for borrowed money. All such loans and advances may be secured by property of the association;

(14) To repurchase and redeem accounts in accordance with the provisions of this chapter;

(15) To pay a bonus to members in accordance with the provisions of this chapter and no other bonus;

(16) If and when an association is a member of a Federal Home Loan Bank, to act as fiscal agent of the United States and, when designated for that purpose by the Secretary of the Treasury, it shall perform, under such regulations as he may prescribe, all such reasonable duties as fiscal agent of the United States as he may require and shall have power to act as agent for any other instrumentality of the United States when designated for that purpose by any such instrumentality and as agent of the state in accordance with the laws of this state; and

(17) To dissolve, merge or reorganize in the manner provided in this chapter.

(c) In furtherance and not in limitation of the powers hereinbefore conferred, the board of directors is expressly authorized:

(1) By resolution approved by a majority of the entire board of directors, to appoint and remove members of an executive committee, composed of the president and two or more additional directors, which committee shall have and exercise the powers of the board of directors when it is not in session;

(2) By resolution, to appoint such other committees as may be deemed necessary and to fix their duties;

(3) To compensate directors as may be provided in the bylaws;

(4) To fix the salaries or other compensation of officers and employees from time to time and to delegate to any officer the powers to fix the salaries or other compensation of employees. No officer shall be prevented from receiving a salary for his services as such officer by reason of the fact that he is also a director;

(5) To extend leniency and indulgence to borrowing members who are in distress and generally to compromise and settle any debts and claims;

(6) To limit from time to time the amounts which may be accepted by the association as payments on accounts;

(7) To reject any application for membership; and

(8) To exercise any and all of the powers of the association not expressly reserved by the certificate of incorporation to the members.

(Acts 1939, No. 459, p. 616; Code 1940, T. 5, §230.)