Article 5 C General Loan Agreement

(1) Investment limits. A Bundessparverein may exercise the powers conferred on it by Articles 5 (c) (1) (B) (residential mortgages), 5 (c) 2 (A) (commercial, commercial, commercial or agricultural loans), 5 (c) 2 (B) (non-residential immovable loans) and 5 (c) 2 (D) (consumer loans) by carrying out leasing activities functionally equivalent to the loans granted under these HOLA sections. These activities are commonly referred to as finance leases. Such finance leases are subject to the same investment limits as loans granted under these Sections. For example, a finance lease of natural personal property granted to an individual for personal, family or household use is subject to all restrictions that apply to the amount of a federal savings association`s investment in consumer loans. A finance lease for commercial, corporate, commercial or agricultural purposes is subject to all restrictions that apply to the amount of an investment by a federal savings association in commercial loans. A residential or non-residential real estate finance lease is subject to all restrictions that apply to the amount of a federal savings association`s investment in this type of home loan. (b) Subsection (a) does not apply to the negotiation of loans or the sale or exchange of promissory notes in connection with the financing of a sale or exchange of immovable property in which the broker as a party had a direct or indirect monetary interest. a) The Agent may, in its sole discretion, audit any broker carrying out transactions subject to the provisions of this Article.

The audit will be conducted with reasonable notice to the broker and will include a review of the following two points: a) authority and scope. This part is administered by the Office of the Comptroller of the Currency (OCC) under its general rule-making and regulatory authority under the Home Owners` Loan Act (HOLA), 12 U.S.C. 1462 et seq. A credit card account is a credit account established as part of the issuance or renewal of credit by a credit card. This term includes loans to consolidate credit card debt, including credit card debts of other lenders, as well as certificates of participation, securities and similar instruments secured by credit card claims. Real estate loans include all loans made on the security of a home (including a housing unit in an apartment building such as a condominium or co-op), combinations of homes and commercial property (i.e., a house partially used for business), the farm, and combinations of farm and commercial agricultural real estate. (2) The performance of the Bundessparverein in accordance with the contract must justify an approved loan or other investment. (1) The receipt and disposal of all funds from others for the granting of loans and the purchase of promissory notes or contracts for the purchase of real estate. The staff member may, at his discretion, take into account requests for interpretative opinions from interested persons in respect of a provision of this Article or a Regulation implementing the provisions of this Article. (c) Any public housing association in which a savings association invests under the supervision of point (b) of this Section shall, before accepting such an investment (including a loan or loan commitment), undertake to provide the OCC at all times with such information as it deems necessary to ensure that investments under this Section are properly made. 6 While there is no legal limit on certain categories of loans and investments, including credit card loans, home renovation loans, student loans, and deposit account loans, the OCC may set an individual limit on such loans or investments where the association`s concentration on such loans or investments poses a security and soundness concern. (5) Commissions received by the broker for the services he has provided as an intermediary in the negotiation of loans and the sale of promissory notes and real estate purchase contracts.

D) Claims for escrow payment shall be based on verification by an independent qualified person who certifies that the work completed to date complies with the relevant codes and standards and that the drawings have been made in accordance with the construction contract and the drawing schedule. For the purposes of this paragraph, “independent qualified person” means a person who is not an employee, agent or affiliate of the broker and who is a licensed architect, general contractor, civil engineer or active local building inspector acting in his or her official capacity. Consumer credit includes loans for personal, family or household purposes and loans reasonably related thereto and may be granted in the form of perpetual or closed consumer loans (as defined in 12 CFR 226.2(a)(10) and (20)). Consumer credit does not include loans granted under credit card loans, bona fide overdrafts and other loans granted by the Savings Association or the Investment or Loan Authority, with the exception of Article 5(c)(2)(D) of the HOLA. (b) General lending standards. Each savings bank association is expected to manage its lending and investment activities prudently. Each association should apply lending and investment standards compatible with security and soundness, ensure appropriate diversification of the portfolio and appropriate to the size and condition of the institution, the nature and scope of its operations and the conditions of its credit market. Each association should adequately monitor the health of its portfolio and the adequacy of any collateral to secure its loans. (G) The total amount of the loan does not exceed two million five hundred thousand dollars ($2,500,000). .