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Board of Governors of the Federal Reserve System
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Federal Reserve Board of Governors

Federal Reserve Act


Section 24. Real Estate Loans

(a) Any national banking association may make, arrange, purchase or sell loans or extensions of credit secured by liens on interests in real estate, subject to such terms, conditions, and limitations as may be prescribed by the Comptroller of the Currency by order, rule, or regulation.

(b) Notes representing loans made under this section to finance the construction of residential or farm buildings and having maturities not to exceed nine months shall be eligible for discount as commercial paper within the terms of the second paragraph of section 13 of the Federal Reserve Act if accompanied by a valid and binding agreement to advance the full amount of the loan upon the completion of the building entered into by an individual, partnership, association, or corporation acceptable to the discounting bank.

[12 USC 371. As amended by acts of Aug. 14, 1946 (60 Stat. 1072); May 25, 1948 (62 Stat. 265); Oct. 25, 1949 (63 Stat. 906); April 20, 1950 (64 Stat. 80); Sept. 1, 1951 (65 Stat. 303, 312); Aug. 15, 1953 (67 Stat. 614); July 22, 1954 (68 Stat. 525); Aug. 17, 1954 (68 Stat. 735); Aug. 11, 1955 (69 Stat. 633, 634); July 18, 1958 (72 Stat. 396); Sept. 9, 1959 (73 Stat. 489); June 30, 1961 (75 Stat. 188, 191); Sept. 28, 1962 (76 Stat. 662, 663); June 30, 1964 (78 Stat. 233); Sept. 2, 1964 (78 Stat. 807); Aug. 10, 1965 (79 Stat. 465, 509); Nov. 3, 1966 (80 Stat. 1277); May 25, 1967 (81 Stat. 28); Aug. 1, 1968 (82 Stat. 518, 609); July 24, 1970 (84 Stat. 462); Dec. 31, 1970 (84 Stat. 1803); Aug. 22, 1974 (88 Stat. 716, 725); and Oct. 15, 1982 (96 Stat. 1510).]

Last update: May 23, 2013