369.254. Association may invest in real property and mobile homes, when.
Association may invest in real property and mobile homes, when.
369.254. An association may:
(1) Invest in such real property as the directors may deemnecessary or convenient for the conduct of the business of theassociation; and
(2) Invest in the acquisition of unimproved real estatelots, and other unimproved real estate for the purpose of promptdevelopment and subdivision, principally for construction ofhousing or for resale to others for such construction, or for useas mobile home sites; and development and subdivision of, andconstruction of, improvements, including improvements to be usedfor commercial or community purposes, when incidental to ahousing project, for sale or for rental on real estate referredto in this subdivision; and acquisition of improved residentialreal estate and mobile homes to be held for rental; andacquisition of improved residential real estate for remodeling,rehabilitation, modernization, renovation, or demolition andrebuilding for sale or for rental; and maintenance and managementof rental real estate referred to in this subdivision.Investments for land development shall be made only within thisstate, or outside this state within one hundred miles of the homeoffice of the association; provided, that any associationlicensed, qualified, admitted to do business as a savingsassociation, and so conducting a savings association business inanother state or states, may invest its funds for the purposesprovided for in this section in this state, or outside this statewithin one hundred miles of the home office of the association,or within such state or states in which it is licensed,qualified, admitted to do business as a savings association andis so conducting a savings association business. The amount soinvested shall not exceed the sum of the reserves and undividedprofits of the association, or ten percent of its total assets,whichever is the lesser, and the maximum percentage of the amountso invested in nonresidential property shall be in accordancewith regulations promulgated by the director of the division offinance. If the director of the division of finance finds thatan association has abused or is abusing the powers granted inthis section, the director may deny or condition the exercise ofsuch powers until the abuse is corrected.
(L. 1971 S.B. 3 § 50, A.L. 1994 H.B. 1165)Effective 7-6-94