New Jersey § 17:2-6

§ 17:2-6.

Savings banks, banks, banking institutions, trust companies, building and loan associations,

savings and loan associations, mortgage companies and insurance companies organized

under any general or special law of this State, all boards, commissions and departments

of the State Government and of the various counties and municipalities thereof, and

executors, administrators, trustees, guardians and other fiduciaries are authorized: a. To make such real estate mortgage loans as may be guaranteed or insured in whole

or in part by the United States of America or the State of New Jersey, or by any officer,

agency or instrumentality of either of them, or for which a commitment to so guarantee

or insure has been made, and to invest in, purchase or otherwise acquire, own or hold,

mortgage notes or bonds so guaranteed or insured; b. To cause such mortgage securities to be and be kept so guaranteed or insured and

to pay for and receive the benefits of such guarantees or insurance; c. To invest in, purchase or otherwise acquire, own and hold notes, bonds, debentures,

capital stock or other such obligations of any national mortgage association; provided,

the issuance of such notes, bonds, debentures, capital stock or other such obligations

has been approved by the Federal Housing Administrator. Nothing in sections 17:2-5 to 17:2-8 of this Title contained shall be construed to empower any fiduciary to make any investment

or commitment in capital stock pursuant to paragraph “c” of this section; d. To make loans for the purpose of financing the purchase of or refinancing an existing

ownership interest in certificates of stock or other evidence of an ownership interest

in, and a proprietary lease from, a corporation or partnership formed for the purpose

of cooperative ownership of real estate in this State. Such institutions may, subject to such regulations as the commissioner finds necessary

and proper, invest to an amount not exceeding 85% per annum of the purchase price

or, in the case of a refinancing, the appraised value of certificates of stock or

other evidence of an ownership interest in and a proprietary lease from, a corporation

or partnership formed for the purpose of the cooperative ownership of real estate

within the State, for the purpose of financing a purchase of or refinancing an existing

ownership interest in such a corporation or partnership, provided (1) such investment

is secured within 90 days from the making of the loan by an assignment or transfer

of the stock or other evidence of an ownership interest of the borrower and a proprietary

lease; and (2) repayment of principal and interest shall be effected within 30 years. Notwithstanding any other provision of law, the maximum rate of interest which may

be charged, taken or received upon any loan or forbearance made pursuant to this subsection

may exceed by no more than 1 1 / 2 % per annum the rate of interest prescribed by the commissioner which is applicable

to mortgage loans on one-to-six family dwellings a portion of which may be used for

commercial purposes, pursuant to the provisions of R.S. 31:1-1 et seq.