N.J. Admin. Code § 3:1-3.5

Current through Register Vol. 56, No. 23, December 2, 2024

Section 3:1-3.5 - Limitations

(a) Notwithstanding any other provision of this subchapter, no financial institution shall exercise or use any emergency mortgage powers as enumerated herein unless it complies with the following limitations:

1. The amount of funds which a bank may invest or advance in any mortgage loan made pursuant to this subchapter shall not exceed 10 percent of its aggregate capital stock, surplus and undivided profits accounts.

2. The amount of funds which a savings bank may invest or advance in any mortgage loan made pursuant to this subchapter shall not exceed 10 percent of its surplus account.

3. The amount of funds, which a savings and loan may invest or advance in any mortgage loan made pursuant to this subchapter shall not exceed one percent of capital.

4. The amount of funds, which an insurance company may invest or advance in any mortgage loan made pursuant to this subchapter shall not exceed that permitted under the insurance laws of this State.

(b) No financial institution investing or advancing any funds in connection with mortgage loans made pursuant to this subchapter may exclude the principal balances owing thereon in determining the aggregate amount of its assets that it may invest in all mortgage loans as prescribed by applicable statutes.

(c) No financial institution shall be authorized or permitted to exercise or use any emergency mortgage power enumerated herein in connection with any real property or improvement thereon not destroyed, damaged or materially affected by the disaster itself.

N.J. Admin. Code § 3:1-3.5

Amended by R.2001 d.112, effective 4/2/2001.
See: 33 New Jersey Register 213(a), 33 New Jersey Register 1087(a).