C.R.S. Section 11-41-114
How funds invested


Any savings and loan association may invest any portion of its funds in any of the following:


Loans to its members, secured by first lien trust deeds or mortgages upon improved real estate, and upon such plans of repayment, as provided in section 11-41-119, and in such other loans to its members as the commissioner may approve;


Bonds and other obligations of, or guaranteed as to interest and principal by, the United States;


Bonds or debentures issued by any federal home loan bank in accordance with the provisions of the “Federal Home Loan Bank Act”;


Consolidated federal home loan bank bonds or debentures issued by the federal home loan bank administration in accordance with the provisions of the “Federal Home Loan Bank Act”;


Bonds or debentures issued by the federal deposit insurance corporation or its successor in accordance with the provisions of Title IV of the “National Housing Act”, and any amendments thereto;


Insured shares of savings and loan associations to the extent that each investment is insured by the federal deposit insurance corporation or its successor and uninsured shares of savings and loan associations but not to exceed ten thousand dollars in any one uninsured association, if such associations are incorporated under the laws of this state or the federal government and are doing business in this state and if such associations are functioning and operating without any restrictions imposed by order of the commissioner or federal home loan bank administration;


Bonds and legal registered warrants as are a direct obligation of the state of Colorado or of any county, city and county, school district, or incorporated city or town therein which has continuously existed as a lawful corporation for a period of at least fifteen years prior to the date thereof and whose bonds have not been in default as to principal or interest for a period of five years prior to the purchase of the same by any savings and loan association;


Other investments, as approved by the commissioner, in which and to the same extent that savings and loan associations, chartered in accordance with the provisions of the “Home Owners’ Loan Act of 1933”, as amended, may invest;
Intentionally left blank —Ed.


Capital stock, obligations, or other securities of any corporation, if such corporation is engaged only in such businesses and activities as may be engaged in by corporations whose capital stock is a lawful investment for federal savings and loan associations under the laws, rules, and regulations applicable to all federal savings and loan associations similarly situated. The maximum total investment by any association in any such corporation or combination of corporations shall not exceed the maximum investment which federal savings and loan associations are permitted to maintain in capital stock, obligations, or other securities of similar corporations.


In addition to the maximum total investment provided in subparagraph (I) of this paragraph (i), an association may invest an additional three percent of its assets in such corporation or combination of corporations solely for residential real estate development through joint ventures. Nothing in this subparagraph (II) shall authorize participation in such joint ventures conditioned upon utilization of any real property held, directly or indirectly, by such corporation. This subparagraph (II) shall not be construed to authorize such corporation or combination of corporations to invest in real property unless such investment is initiated through a joint venture.


No association organized under the laws of this state shall acquire the capital stock, obligations, or other securities of any such corporation until there has been filed in the office of the commissioner a statement by such corporation agreeing to permit, and pay all costs of, such examinations or audits of the corporation by the commissioner as he deems necessary in order to confirm compliance with the provisions of this paragraph (i).


Investments in real property and obligations secured by liens on real property located within a geographic area or neighborhood receiving concentrated development assistance by a local government under Title I of the “Housing and Community Development Act of 1974”, as amended, but no investment in real property may exceed an aggregate investment of two percent of the assets of the association;


Loans as to which the association has the benefit of any guaranty under Title IV of the “Housing and Urban Development Act of 1968”, as amended, or under part B of the “National Urban Policy and New Community Development Act of 1970”, as amended, or under section 802 of the “Housing and Community Development Act of 1974”, as amended, or of a commitment or agreement therefor;


Revenue obligations issued to provide, enlarge, or improve electric power, gas, water, and sewer facilities by any city or town having a population of not less than two thousand people at the time of the investment located in any state in the United States and such investment shall be in accordance with the laws of this state.


In addition to the acceptance of deposit or share accounts, any association may borrow money and negotiate for and receive such long-time or short-time loans evidenced by notes, bonds, debentures, or other securities as may be found necessary to advance the purposes of the association, subject to any limitations as to the total aggregate amount of such borrowings contained in the charter or articles of incorporation of the association or imposed by rules and regulations duly adopted by the commissioner. Except as limited by the terms of its charter or articles of incorporation or by duly adopted rules and regulations of the commissioner, an association may secure such borrowings by the mortgage, pledge, collateral assignment, or other hypothecation of its properties, including a trust or pool or mortgages or other encumbrance held by it. Without limiting the generality of the foregoing, an association may issue and sell securities guaranteed pursuant to section 306 (g) of the “National Housing Act”, as amended, and may secure such securities as permitted in this subsection (2) and may issue and sell any other guaranteed or unguaranteed securities of a type or kind which may be issued and sold by federal savings and loan associations and secure the same with the property of the association to the same extent as permitted for federal savings and loan associations.


Any association may invest in real estate or interests therein, including buildings and related parking facilities, for use in the conduct of the business of the association or for the conduct of such business and for rental to others of excess space; but no such investment may be made without the prior approval in writing of the commissioner if the total amount of all of such investments made by the association exceeds the aggregate amount of the association’s general reserves, undivided profits, and surplus. A permitted investment under the foregoing provision shall be deemed to include the ownership of stock of a wholly-owned subsidiary corporation having as its exclusive activity the ownership and management of such property or interests.


An association may loan an amount not exceeding three percent of the association’s assets in a manner not otherwise authorized by articles 40 to 47 of this title, on condition that such loans are related to real estate or housing.


An association may invest in real estate, real estate interests, and real estate related enterprises for the purpose of producing income, for inventory and sale, improvement, or rental by direct purchase or otherwise. The maximum total investment by an association pursuant to this subsection (5) shall not exceed ten percent of its assets reduced by the amount invested by the association in real estate through service corporations pursuant to paragraph (i) of subsection (1) of this section. In connection with such investment, the association may exercise all rights of an owner.

Source: Section 11-41-114 — How funds invested, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-11.­pdf (accessed Oct. 20, 2023).

General organization
Restriction on corporate name
Use of name “savings and loan association” restricted
Articles of incorporation
Minimum stock subscription - issuance of preferred stock
Approval of articles of incorporation
Documents deposited with commissioner
Refusal of certificate - appeal
Certificate of approval - where articles filed
Body corporate
Renewal of corporate life
Powers of savings and loan associations
Savings and loan association as fiduciary
Federal home loan bank membership
How funds invested
Interest rates on loans
Where associations may operate
Insurance of shares
Insurance of obligations
Loans - investment in notes or bonds
Loans to members and other loans
Merger, consolidation, and transfer
Membership fees
Directors and meetings
Officers or directors to receive no commission
Loans to officers and directors
Bonds of officers
Violations - penalties
Amendment of articles of incorporation
Cessation of business as an association - amendment of articles
Escheat proceedings
Acquisition of majority control over an existing association - definitions
Indemnification and personal liability of directors, officers, employees, and agents - legislative declaration
Green check means up to date. Up to date

Current through Fall 2024

§ 11-41-114’s source at colorado​.gov